Wednesday Watch

Night Trading 

• Asian equity indices are unch. to +1.0% on average.

• Asia Ex-Japan Investment Grade CDS Index 114.0 +2.0 basis points. 

• China Sovereign CDS 59.0 +.5 basis point. 
• China Iron Ore Spot 120.0 USD/Metric Tonne +.04%.

• Bloomberg Emerging Markets Currency Index 48.1 +.02%.
• Bloomberg Global Risk-On/Risk Off Index  57.7 +.15%. 
• Bloomberg US Financial Conditions Index .05 unch.
  
• Volatility Index(VIX) futures 22.3 +.25%.
• Euro Stoxx 50 futures +.59%.

• S&P 500 futures +.11%.

• NASDAQ 100 futures +.10%.  

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• None of note
  

After the Close:

• (KBH)/2.85
  

Economic Releases

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -719,830 barrels versus a +1,694,000 barrel gain the prior week. Gasoline supplies are estimated to rise by +703,670 barrels versus a -346,000 barrel decline the prior week. Distillate inventories are estimated to fall by -671,500 barrels versus a -1,427,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise +4.0% versus a -12.4% decline prior.

2:00 pm EST

• The Monthly Budget Statement for Dec. is estimated at -$60.0B versus -$21.3B in Nov.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China CPI data report, 10Y T-Note auction and the weekly MBA Mortgage Applications report could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are modestly higher, boosted by commodity and financial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.