Thursday Watch

Evening Headlines

Bloomberg:           

• Biden’s Top Man in Asia Says the Era of Engagement With China Is Over.
• Ditched Olympics Could Wipe Out Most of Japan’s Growth This Year.  
• Local Lockdowns Temper India’s Economic Activity in April.
  
• The Super Rich Are Choosing Singapore as the World’s Safest Haven.
• Bank CEOs Take Punches From Democrats, Warnings From Republicans.
• Exxon CEO Is Dealt Stinging Setback at Hands of New Activist.
• Shell Loses Climate Case That May Set Precedent for Big Oil.  
• Asia Stocks Eye Steady Start; Dollar, Yields Rise: Markets Wrap.
• Central Banks’ Slow Shift, Fed Taper, China Cost Impact: Eco Day.  
• From Corn to Copper, Commodities Cool Off With China in Focus. 
• Heat to Test Electric Grids From West Coast to New England.
• GameStop, AMC Shorts Get Hit With $673 Million Loss in Big Rally.
• Justice Department Opens Probe Into Archegos Blowup.

Wall Street Journal:

• Who Wants a Woke Bank?
• The Virus Lab Theory’s New Credibility. 
• Google, Hospital Chain to Make Tools Using Patient Data.

Fox News:

• Fauci doesn't believe Wuhan scientists made viruses more contagious.
  

CNBC.com:

• Nvidia revenue jumps 84% as gamers demand graphics chips.  
• FDA gives emergency use approval for Covid-19 antibody drug.
• American Eagle is the latest apparel retailer to crush estimates as teens head back to the mall.

MarketWatch.com:       

• Snowflake stock drops after losses double.

Zero Hedge:

• "Don't You Live In The Ghetto?" - Bill Gates Ignored Complaints About Top Money Manager's Racist, Sexist Behavior.
• "What The Hell Is Going On - 2020 Edition" - Chamath's Annual Letter Warns That "People Have Stopped Thinking For Themselves".
• Global Chip Hub Taiwan Hammered By Triple Blow Of Drought, Blackouts And COVID Surge.
• Illinois Constitutional Amendment Is "A Monstrous Giveaway To Public Unions".
• Re-Funding The Police: Major Cities Backtrack On Police Budget Cuts After Crime Surges.
• What To Expect In Tomorrow's "Monster" Momentum Quant Rebalance.
• Johns Hopkins Prof: Half Of Americans Have Natural Immunity; Dismissing It Is "Biggest Failure Of Medical Leadership".
• Suddenly The Market No Longer Sees Jackson Hole As Taper D-Day.
• "Change Is Coming" - Engine No. 1 Wins Two Exxon Board Seats.
• Small Caps Surge Amid Massive Short-Squeeze, Dollar Dead-Cat-Bounces.

Newsmax:

• White House Avoids Question on Possible Penalties for China in COVID-19 Origins Probe.  
• Trump: China 'Took Care of Hunter, Took Care of Joe'.  
• Rand Paul: Fauci Should Have to Testify on Wuhan Money.
  

TheGatewayPundit.com:

• “A Weaponized Operation” – General Flynn Blasts Biden Admin’s Efforts to Cover Up Origins of Covid (AUDIO).
• UPDATE: Biden Admin Shuts Down Trump’s Investigation into Origins of China Virus — Then Turns It Over to Crooked Intel Community and Asks China to Help.

The Epoch Times: 

• Senate Adopts GOP Amendment Banning US Funding of China’s Gain-of-Function Cell Research.

Digital Blackboard:

• Daily New Cases by Region.

Worldometer:

• New Cases/Deaths by state.

Rt Covid-19:

• How fast virus is growing by state.

KFF:

• State Data(Tests/Hospitalizations).

Night Trading 

• Asian equity indices are -.25% to +.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 86.0 -.5 basis point.

• China Sovereign CDS 37.25 -.75 basis point.

• Bloomberg Emerging Markets Currency Index 61.22 -.02%.
• Bloomberg Global Risk-On/Risk Off Index 3,322.0 -14.0 points.
• Volatility Index(VIX) futures 19.75 +.65%.
• FTSE 100 futures -.02%.

• S&P 500 futures -.02%.

• NASDAQ 100 futures +.05%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (AMWD)/1.71
• (PLAN)/-.09
• (BBY)/1.41
• (BURL)/.83
• (DG)/2.20
• (DLTR)/1.40
• (FRO)/-.06
• (GCO)/-.53
• (MDT)/1.42
• (SAFM)/2.50
• (TITN)/.16
• (TD)/1.76
  

After the Close:

• (ADSK)/.94
• (BOX)/.17
• (COST)/2.28
• (DELL)/1.62
• (GPS)/-.09
• (GES)/-.20
• (OLLI)/.62
• (CRM)/.89
• (ULTA)/1.96
• (VMW)/1.80
  

Economic Releases

8:30 am EST

• Durable Goods Orders for April is estimated to rise +.8% versus a +.8% gain in March.
• Durables Ex Transports for April is estimated to rise +.8% versus a +1.9% gain in March.
• Cap Goods Orders Non-Defense Ex-Air for April is estimated to rise +1.0% versus a +1.2% gain in March.
• Initial Jobless Claims for last week are estimated to fall to 425K versus 444K the prior week.
• Continuing Claims is estimated to fall to 3680K versus 3751K prior.
  

10:00 am EST

• Pending Home Sales MoM for April is estimated to rise +.5% versus a +1.9% gain in March.

11:00 am EST

• Kansas City Fed Manufacturing Activity for May is estimated to fall to 30 versus 31 in April.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The House Hearing with major banks, weekly Langer Consumer Comfort Index, weekly EIA natural gas inventory report, $62B 7Y T-Note auction, German Consumer Sentiment report, (MRNA) science day and the (RJF) investor day could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly higher, boosted by technology and consumer shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.