Sunday, February 04, 2018

Monday Watch

Today's Headlines
Bloomberg:
  • Asian Demand for 16,000 Planes Spells Jackpot for Airbus, Boeing(BA). The rapid growth of mainland Chinese carriers and the entry of many budget operators has meant billions of dollars in orders for the aircraft makers. At the Singapore Airshow this week, top officials from Airbus SE Chief Executive Officer Tom Enders to Boeing Co.’s vice president of marketing Randy Tinseth are due to outline their plans to capture that boom.
  • Global Equity Rout Deepens as Rate Fears Grow. Asian equities fell with Dow Jones Industrial Average futures tumbling almost 1 percent as the biggest rout for global stocks in two years and surging government bond yields kept investors questioning the speed of monetary policy tightening. The dollar extended gains. Equity indexes in Australia and New Zealand sank at least 1 percent, while futures on the S&P 500 Index were 0.7 percent lower and losses were expected in Japan and Hong Kong. The gauge of U.S. shares tumbled 2.1 percent Friday and the 10-year Treasury yield rose above 2.85 percent following solid jobs data showing rising wages and a hint from Dallas Fed President Robert Kaplan that the Federal Reserve may need to lift interest rates more than three times this year. Futures on Japan’s Nikkei 225 Stock Average sank 1.4 percent in late Friday trading in Chicago. Australia’s S&P/ASX 200 Index dropped 1.3 percent and New Zealand’s S&P/NZX 50 Index sank 1.5 percent. Contracts on Hong Kong’s Hang Seng Index declined 1.3 percent. The MSCI Asia-Pacific Index fell 0.3 percent.
Wall Street Journal:
  • Bitcoin’s Crashing? That Won’t Stop Arbitrage Traders From Raking in Millions. Cryptocurrency arbitrageurs cash in on wide price disparities between exchanges.
Night Trading
  • Asian indices are -1.25% to -1.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 67.5 +3.0 basis points.
  • Asia Pacific Sovereign CDS Index 11.75 +.25 basis  point.
  • Bloomberg Emerging Markets Currency Index 75.89 -.04%.
  • S&P 500 futures -.42%.
  • NASDAQ 100 futures -.35%.

Earnings of Note
Company/Estimate
  • (BMY)/.67
  • (HES)/-.92
  • (ON)/.37
  • (SYY)/.65
  • (BMI)/.24
  • (FN)/.70
  • (FTNT)/.29
  • (OCLR)/.12
  • (NOV)/-.04
  • (SWKS)/1.91
Economic Releases
10:00 am EST
  • The ISM Non-Manufacturing Composite for January is estimated to rise to 56.5 versus 55.9 in December.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone PMI report and the Eurozone retail sales report could also impact trading today.
BOTTOM LINE: Asian indices are lower, weighed down by technology and industrial shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 50% net long heading into the week.

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