Wednesday, May 06, 2020

Thursday Watch

Evening Headlines
Bloomberg:               
  • Asia Stocks to Follow U.S. Lower; Dollar Rises: Markets Wrap. Asian stocks opened lower after a drop in U.S. equities, with investors digesting mixed corporate earnings and worsening economic data. Japanese shares slid as Tokyo traders returned from Golden Week holidays, and Korean equities dipped. Treasuries edged up, taking back some of their recent declines amid a surge in U.S. debt issuance. Futures on the S&P 500 were flat after the index declined overnight. The dollar held gains, while the yen continued to trade near the highest since mid-March. Futures on the S&P 500 Index was little changed as of 9:10 a.m. in Tokyo. The index fell 0.7% on Wednesday. The Topix Index dropped 0.8%. Australia’s S&P/ASX 200 Index fell 0.4%. Kospi Index fell 0.5%. Hong Kong’s Hang Seng Index contracts fell 0.8% earlier.
Wall Street Journal:
CNBC.com:
Zero Hedge:   
The Epoch Times:
John Hopkins University:
Night Trading 
  • Asian equity indices are -.75% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 121.5 +2.0 basis points.
  • China Sovereign CDS 52.25 +4.0 basis points.
  • Bloomberg Emerging Markets Currency Index 57.79 -.04%.
  • FTSE 100 futures -.27%.
  • S&P 500 futures +.25%.
  • NASDAQ 100 futures +.43%.
Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:
  • (AGN)/3.90
  • (ABC)/2.27
  • (BUD)/-.33
  • (MT)/-1.86
  • (AAWW)/.06
  • (BDX)/2.29
  • (BMY)/1.49
  • (CBRE)/.71
  • (DHR)/1.05
  • (DISH)/.57
  • (ELAN)/.24
  • (HAIN)/.24
  • (HES)/-.61
  • (JBLU)/-.46
  • (NCLH)/-.27
  • (RTX)/1.05
  • (TEVA)/.59 
  • (THS)/.33
  • (VIAC)/.95
  • (YETI)/.05
After the Close:
  • (BIDU)/3.92
  • (BKNG)/4.94
  • (CTSH)/.93
  • (ED)/1.41
  • (FSLR)/.31
  • (LYV)/-.70
  • (MCHP)/1.36
  • (MNST)/.48
  • (NWSA)/.00
  • (POST)/.89
  • (RDFN)/-.75 
  • (SKYW)/.91
  • (TTD)/.43
  • (TRIP)/.16
  • (UBER)/-.70
  • (OLED)/.65
  • (YELP)/.24
  • (ZG)/-.33
Economic Releases
7:30 am EST
  • Challenger Job Cuts YoY for April.
8:30 am EST:
  • Preliminary 1Q Non-Farm Productivity is estimated to fall -5.5% versus a +1.2% gain in 4Q.
  • Preliminary 1Q Unit Labor Costs are estimated to rise +4.5% versus a +.9% gain in 4Q.
  • Initial Jobless Claims for last week are estimated to fall to 3000K versus 3839K the prior week.
  • Continuing Claims are estimated to rise to 19800K versus 17992K prior.
3:00 pm EST
  • Consumer Credit for March is estimated to fall to $15.0B versus $22.331B in Feb.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The BofE rate decision, weekly Bloomberg Consumer Comfort Index and the weekly EIA natural gas inventory report could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are mostly lower, weighed down by tech and financial shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.

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