- Asia Stocks to Rise After U.S. Gains; Dollar Dips: Markets Wrap. Asian stocks opened modestly in the green as investors weighed signs of economies continuing to reopen against the need for further stimulus down the road. The dollar ticked higher. Shares in Japan, South Korea and Australia edged up, with gains shallower than overnight in the Wall Street session. S&P 500 contracts dipped after the gauge closed higher Wednesday, when retailers reported sales that topped estimates and energy shares climbed. U.S.-China tensions remain at the forefront after the Senate passed a bill that could bar some Chinese companies from listing on American exchanges. Treasuries were steady, while the rally in crude oil eased. Futures on the S&P 500 dropped 0.2% as of 9:05 a.m. in Tokyo. The gauge rose 1.7% on Wednesday. Japan’s Topix index rose 0.4%. South Korea’s Kospi index advanced 0.6%. Australia’s S&P/ASX 200 Index added 0.4%.
- Coronavirus live updates: Apple and Google release contact tracing technology, University of California institutes pay freeze.
- Shocking before-and-after photo shows what the coronavirus did to an otherwise healthy man in just 6 weeks.
- The economy is finally recovering from the coronavirus, but the ill-effects aren’t going away for a long time.
- “Trust Is Being Undermined” – Harvard Medical School Prof Questions Fauci’s “Shading” Vaccine Results
- US Banks On Hook For $150 Billion In “Frozen Loans” As Millions Of Americans Skip Credit Card And Car Payments.
- Ford Temporarily Shuts Down Two Plants Just Days After Reopening After Workers Test Positive For COVID-19.
John Hopkins University:
- Coronavirus Global Cases. (map)
- Asian equity indices are unch. to +.5% on average.
- Asia Ex-Japan Investment Grade CDS Index 108.25 -4.0 basis points.
- China Sovereign CDS 45.75 -4.25 basis points.
- Bloomberg Emerging Markets Currency Index 59.24 -.04%.
- FTSE 100 futures -.26%.
- S&P 500 futures -.26%.
- NASDAQ 100 futures -.12%.
Morning Preview Links
Earnings of Note
Before the Open:
After the Close:
8:30 am EST
- Philly Fed Business Outlook for May is estimated to rise to -40.0 versus -56.6 in April.
- Initial Jobless Claims for last week are estimated to fall to 2400K versus 2981K the prior week.
- Continuing Claims are estimated to rise to 23500K versus 22833K prior.
9:45 am EST
- Preliminary Markit US Manufacturing PMI for May is estimated to rise to 39.5 versus 36.1 in April.
10:00 am EST
- The Leading Index for April is estimated to fall -5.4% versus a -6.7% decline in March.
- Existing Home Sales for April is estimated to fall to 4.22M versus 5.27M in March.
- None of note
Other Potential Market Movers
- The Fed’s Powell speaking, Fed’s Williams speaking, Fed’s Clarida speaking, Japan inflation rate, Bloomberg Economic Expectations Index for May, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report and the (M) virtual fireside chat with JPM could also impact trading today.
- 9:30 am – 4:00 pm EST
BOTTOM LINE: Asian indices are modestly higher, boosted by transport and energy 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.
SOURCE: BETWEEN THE HEDGES – Read entire story here.