Tuesday, June 02, 2020

Wednesday Watch

Evening Headlines
Bloomberg:     
  • Stocks Rise for Third Day on Outlook for Reopening: Markets Wrap. U.S. stocks rose alongside equities in Europe and Asia amid new bouts of stimulus and positive economic signals as coronavirus lockdowns ease. The dollar slumped for a fourth consecutive day. Two shares rose on the S&P 500 Index for every one that fell, lifting the benchmark to its highest since March 4. Gunmakers extended rallies in the wake of President Donald Trump’s promise to deploy large numbers of troops if cities and states don’t act to contain violence from protests over police brutality. The S&P 500 Index rose 0.8% at the close of trading in New York for its third straight gain. The Stoxx Europe 600 Index advanced 1.6%. The MSCI Asia Pacific Index increased 1%. The MSCI Emerging Market Index gained 1.7%.
Wall Street Journal:
Fox News:
CNBC.com:
MarketWatch.com:        
Zero Hedge: 
Night Trading 
  • Asian equity indices are +.75% to +1.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 96.0 -3.5 basis points.
  • China Sovereign CDS 51.25 -3.25 basis points.
  • Bloomberg Emerging Markets Currency Index 61.23 +.13%.
  • FTSE 100 futures +.65%
  • S&P 500 futures +.32%.
  • NASDAQ 100 futures +.25%.
Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:
  • (AEO)/-.31
  • (CPB)/.54
  • (GOOS)/-.12
  • (VRA)/-.27
After the Close:
  • (CLDR)/.01
Economic Releases
8:15 am EST
  • The ADP Employment Change for May is estimated at -9000K versus -20236K in April.
10:00 am EST
  • The ISM Non-Manufacturing Index for May is estimated to rise to 44.4 versus 41.8 in April.
  • Factory Orders for April are estimated to fall -13.4% versus a -10.3% decline in March.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory gain of +3,326,360 barrels versus a +7,928,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -238,550 barrels versus a -724,000 barrel decline the prior week. Distillate inventories are estimated to rise by +3,198,450 barrels versus a +5,495,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise by +.8% versus a +1.9% gain prior.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German Unemployment report, weekly MBA Mortgage Applications report, (COST) May sales results, Piper Sandler Virtual FinTech Conference, Needham Virtual Auto Tech Conference and the (ADSK) investor day could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are higher, boosted by industrial and technology shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

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