Wednesday, May 13, 2020

Thursday Watch

Evening Headlines
Bloomberg:                 
  • Asian Stocks Set for Declines After U.S. Retreat. Asian stocks looked set to follow U.S. shares lower, after Federal Reserve Chair Jerome Powell warned about economic risks and tensions with China flared. Treasuries ticked higher and the dollar advanced. Futures dropped in Japan, Hong Kong and Australia. Contracts on the S&P 500 edged up after the gauge briefly fell in the Wednesday session below 2,800, a level that has provided support in the past month. Powell said the threat of a lasting downturn could deepen without additional government spending. A federal savings plan delayed moving funds into an index with Chinese stocks, adding to tensions stoked by President Donald Trump. Futures on the S&P 500 rose 0.3% as of 7:07 a.m. in Tokyo. The gauge decreased about 1.7% on Wednesday. Futures on Japan’s Nikkei 225 declined 0.5%. Hang Seng futures retreated 0.9%. Futures on Australia’s S&P/ASX 200 Index lost 1.1%.
Wall Street Journal:
 Fox News:
CNBC.com:
MarketWatch.com:         
Zero Hedge:
Night Trading 
  • Asian equity indices are -1.25% to -.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 119.25 +1.25 basis points.
  • China Sovereign CDS 53.25 +3.0 basis points.
  • Bloomberg Emerging Markets Currency Index 58.09 unch.
  • FTSE 100 futures -.76%.
  • S&P 500 futures -.03%.
  • NASDAQ 100 futures +.01%.
Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:
  • (AGN)/3.90
  • (CCL)/-1.66
  • (FLR)/.25
  • (FOSL)/-1.51
  • (NCLH)/-.49
  • (SSYS)/-.06
After the Close:
  • (AMAT)/.89
  • (BOOT)/.28
Economic Releases
8:30 am EST
  • The Import Price Index MoM for April is estimated to fall -3.2% versus a -2.3% decline in March. 
  • The Import Price Index Ex Petrol for April is estimated to fall -.5% versus a -.1% decline in March.
  • The Export Price Index MoM for April is estimated to fall -2.3% versus a -1.6% decline in March.
  • Initial Jobless Claims for last week are estimated to fall to 2500K versus 3169K the prior week.
  • Continuing Claims are estimated to rise to 25120K versus 22647K prior.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Kashkari speaking, Fed's Kaplan speaking, German Inflation Data report, Bloomberg weekly Consumer Comfort Index, weekly EIA natural gas inventory report, Credit Suisse Utilities/Power/Clean Tech Conference, Citi Virtual Chemical Conference and the UBS Virtual Insurance Conference could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are lower, weighed down by energy 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 25% net long heading into the day.

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