Tuesday, January 05, 2021

Wednesday Watch

 Night Trading 

  • Asian equity indices are -.75% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 57.75 +1.0 basis point.
  • China Sovereign CDS 28.5 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 62.98 +.01%.
  • Bloomberg Global Risk-On/Risk Off Index 1,400.0 +44.0 points.
  • Volatility Index(VIX) futures 27.0 +2.0%.
  • FTSE 100 futures +.14%.
  • S&P 500 futures -.30%.
  • NASDAQ 100 futures -.45%.
Morning Preview Links

Earnings of Note 
Before the Open: 
  • (GBX)/-.10
  • (MSM)/1.09
  • (RPM)/.99
  • (SMPL)/.21
After the Close:
  • (JEF)/.49
  • (RGP)/.17
Economic Releases
8:15 am EST
  • The ADP Employment Change for Dec. is estimated to fall to 63K versus 307K in Nov.
10:00 am EST
  • Factory Orders for Nov. is estimated to rise +.7% versus a +1.0% gain in Oct.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,696,820 barrels versus a -6,065,000 decline the prior week. Gasoline supplies are estimated to rise by +57,360 barrels versus a -1,192,000 barrel decline the prior week. Distillate inventories are estimated to rise by +672,550 barrels versus a +3,095,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise +.36% versus a +1.4% gain prior.
2:00 pm EST:
  • FOMC Dec. 16 Meeting Minutes.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The electoral college vote certification by Congress, China Services PMI report, Eurozone Services PMI report, weekly MBA Mortgage Applications report, 2021 Consumer Electronics Show, Goldman Sachs Global Energy Conference and (COST) Dec. sales results could also impact trading today.
Market Hours
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are mostly lower, weighed down by consumer and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

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