Friday Watch

Evening Headlines

Bloomberg:  

• Asian Stocks Swing as Investors Avoid Risk Before Payrolls Data. Asian stocks fluctuated in a narrow range as investors avoided taking on risk before key U.S. payrolls data that may provide hints on the path of interest rates in the world’s largest economy. The MSCI Asia Pacific Index rose less than 0.1 percent to 138.39 as of 9:11 a.m. in Tokyo, after dropping less than 0.1 percent. The gauge of Asian companies has been in a holding pattern this week as investors turned their attention to the Friday payrolls data after Federal Reserve Chair Janet Yellen indicated the case for an interest-rate increase is getting stronger. Commodity shares fell as oil headed for its worst weekly drop in eight months on signs of a glut.
• Your Kitchen Appliances Are Watching You, Security Expert Warns. Your fridge is getting so smart, security-software maker Kaspersky Lab thinks you probably shouldn’t trust it. As makers of household appliances fill their machines with computer chips to make them smarter, consumers and privacy watchdogs should beware the data collected by these objects and how it’s used, Marco Preuss, a director on Kaspersky’s global research and analysis team in Europe, said at the IFA consumer electronics conference in Berlin. "A fridge is no longer only a fridge, it’s now also a sensor collecting private information,"Preuss said. "Vendors need to say what data they collected, where it’s stored and who’s using it, and regulators need to work on standards and requirements to make companies more transparent about this. It’s the only way to bring consumer trust back."

Wall Street Journal:

• Make Democrats Own ObamaCare. In the states that will determine control of the Senate, the health law is falling apart.

Zero Hedge:

• Georgetown To Grant Admission Preference To Slave Descendants. 
• New Hillary Emails Expose Bill Pushing Meetings With Foundation Donors, Requests For "Diplomatic Passports".
• Albert Edwards Sees Shades Of 2007 In The Biggest Risk Facing The US Consumer. (graph)
• "Life-Threatening" Hurricane Hermine To Hit Florida, Head For Tri-State.
• DHS Prepares For Nuke Attack With Massive Order For Radiation Detectors.
• Rutgers Defends 'Victims' Of Microaggressions, Microassaults, And Microinsults.
• Smith & Wesson(SWFC) Forecasts Record Quarterly Revenue As Earnings Soar 93%.
• Q2 Earnings Review – Hockey Stick Hopes Remain. (graph)
• "Death, Taxes, & A Disappointing August Jobs Data" - Why Tomorrow's Payroll Print Will Be A Farce.
• eVIXeration Rescues Stocks From Crude Carnage, Dismal Data, Auto Angst. (graph)

Business Insider:

• The world's biggest hedge fund expects a bust in China.
• 'It doesn't matter how tall of a wall you put up': Trump's border-wall plan is still full of holes.
• Russia is going to deploy a division of troops about 50 miles from the US.
• 11 reasons why people are flocking to Texas.
• We’re rapidly approaching that zero point of debt creation.
• China could be preparing for a paramilitary invasion in the East China Sea.
• Lululemon(LULU) same-store sales miss, stock plunges.
• Ford(F) says US auto sales have peaked.

Night Trading 

• Asian equity indices are -.50% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 113.75 +.75 basis point.
• Asia Pacific Sovereign CDS Index 38.5 +.25 basis point.
• Bloomberg Emerging Markets Currency Index 72.23 +.02%. 
• S&P 500 futures -.07%. 
• NASDAQ 100 futures -.02%.

Morning Preview Links

Earnings of Note
Company/Estimate 

• None of note

Economic Releases
8:30 am EST

• The Trade Deficit for July is estimated at -$41.5B versus -$44.5B in June.
• The Change in Non-Farm Payrolls for August is estimated to fall to 180K versus 255K in July.
• The Unemployment Rate for August is estimated to fall to 4.8% versus 4.9% in July.
• Average Hourly Earnings MoM for August are estimated to rise +.2% versus a +.3% gain in July.  

9:45 am EST

• The ISM New York.

10:00 am EST

• Factory Orders for July are estimated to rise +2.0% versus a -1.5% decline in June.
• Final Durable Goods Orders for July are estimated to rise +4.4% versus a prior estimate of a +4.4% gain.

Upcoming Splits 

• None of note

Other Potential Market Movers

• The Fed's Lacker speaking could also impact trading today.

BOTTOM LINE:  Asian indices are mostly lower, weighed down by financial and commodity 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 day.