Wednesday Watch

Evening Headlines

Bloomberg:

• Japan November Industrial Output Rises Most in Five Months. Japan’s industrial output rose the most in five months in November as export volumes rebounded sharply, pointing to an expected economic expansion in the fourth quarter.
• Japan Back in Deflation Doesn't Mean All Prices Fall. Shinzo Abe and Haruhiko Kuroda promised to drag Japan out of decades of deflation in 2013. That hasn't happened yet, with core inflation dropping in November for a ninth month.
• Japan, Australia Stocks Climb While Oil Retreats: Markets Wrap. The Topix index was little changed as about 10 percent of the companies in the benchmark measure traded without the right to receive the next dividend. Australia’s benchmark rose the most in three weeks after being closed for holidays on Monday and Tuesday.

Fox News:

• Blue Lives Lost: Dramatic rise in police officers gunned down in line of duty in 2016.

CNBC: 

• Investors should take a pause as Dow inches toward 20K, experts say. (video)

Zero Hedge: 

• Is The "Deplorable Economy" Flashing Warning Signs About Overall Economic Growth Prospects? (graph)
• Obama Set To Announce Economic Sanctions And "Covert Cyber Ops" Against Russia For "Election Hacking".
• The New Normal 'Safety Net': Surging Disability Benefits Claims. (graph)
• US Government Can Legally Access Your Facebook(FB) Data (And Now We Know How).
• Here's Who Democrats Say Are The Top 15 Presidential Candidates For 2020.
• Dow 20k Disappoints For 10th Day Despite Market Optimism Surging Most Since Dot-Com Peak. (graph)

Business Insider:

• The job market is still 'terrible' for many Americans.
• Manufacturing is taking a beating in Canada.

Night Trading 

• Asian equity indices are -.25% to +.75% on average.
• Asia Ex-Japan Investment Grade CDS Index 113.25 -1.75 basis points.
• Asia Pacific Sovereign CDS Index 37.25 +.25 basis point.
• Bloomberg Emerging Markets Currency Index 69.63 +.02%. 
• S&P 500 futures +.11%. 
• NASDAQ 100 futures +.18%.

Morning Preview Links

Earnings of Note
Company/Estimate

• None of note

Economic Releases
10:00 am EST

• Pending Home Sales MoM for November are estimated to rise +.5% versus a +.1% gain in October. 

Upcoming Splits 

• None of note

Other Potential Market Movers

• The UK mortgage approvals report and the $34B 5Y T-Note auction could also impact trading today.

BOTTOM LINE:  Asian indices are mostly higher, boosted by commodity and technology 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.