Sunday, May 31, 2020

Monday Watch

Today's Headlines
  • U.S. Stock Futures Slip as Protests Spread; Yen Up: Markets Wrap. U.S. stock futures retreated, while Asian equities were largely mixed in early Monday trading, as investors weighed the violent protests in some American cities that have stoked concerns about a reacceleration in infection rates and a damper on the economic recovery. The yen and gold edged up. S&P 500 futures retreated and shares in Japan and Sydney opened flat. With Amazon scaling back deliveries and Apple closing some stores Sunday, investors are gauging how violence over the weekend will affect the reopening of the world’s largest economy. Crude oil fell. China’s markets will be taking in President Donald Trump’s latest barrage of China criticism, which stopped short of tough sanctions over Hong Kong. Futures on the S&P 500 Index declined 0.5% as of 9:01 a.m. in Tokyo. The index climbed 0.5% on Friday. Japan’s Topix index dipped 0.1%. South Korea’s Kospi index rose 0.4%. Australia’s S&P/ASX 200 Index slid 0.2%. 
Wall Street Journal:
Zero Hedge:
Night Trading
  • Asian indices are +.75% to +1.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 100.25 unch.
  • China Sovereign CDS 52.75 +1.0 basis point.
  • Bloomberg Emerging Markets Currency Index 60.25 +.18%.
  • FTSE 100 futures +1.1%.
  • S&P 500 futures +.05%.
  • NASDAQ 100 futures +.04%.

Earnings of Note

Before the Open:
  • (ATHM)/.75
After the Close:
  • (ENS)/1.19
  • (NGL)/.08
Economic Releases
10:00 am EST
  • Construction Spending MoM for April is estimated to fall -7.0% versus a +.9% gain in March.
  • ISM Manufacturing for May is estimated to rise to 43.5 versus 41.5 in April.
  • ISM Prices Paid for May is estimated to rise to 40.0 versus 35.3 in April.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Manufacturing PMI report, Eurozone PMI report, (RJF) investor day, Morgan Stanley Could Winners Virtual Conference, (REGN) oncology portfolio update and the Goldman Sachs Travel/Leisure Conference could also impact trading today.
Market Hours
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are modestly higher, boosted by financial and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 50% net long heading into the week.

Weekly Outlook

BOTTOM LINE: I expect US stocks to finish the week mixed as disappointing global economy re-opening data, oil weakness and US social unrest offset global stimulus hopes, coronavirus vaccine optimism and short-covering. My intermediate-term trading indicators are giving bearish signals and the Portfolio is 50% net long heading into the week.

Saturday, May 30, 2020

Today's Headlines

  • Had bullish commentary on (DAL), (LUV), (SAVE), (STAY), (LIND), (MPC), (CQP), (CTRE), (CB), (HIG) and (LVS)
  • Had bearish commentary on (M).
Fox News:
Zero Hedge:
Business Insider: