Thursday Watch

Evening Headlines

Bloomberg:

• Catalan Leader Keeps Spain Guessing on Independence Declaration. Catalan President Carles Puigdemont kept the rest of Spain guessing on if and when he will declare independence, prolonging the uncertainty over the breakaway region’s ultimate card in its confrontation with the government in Madrid. Speaking in a televised statement on Wednesday night, Puigdemont reiterated an offer for mediated talks while attacking King Felipe VI’s condemnation 24 hours earlier of Catalonia’s illegal referendum on Sunday. The regional government in Barcelona will soon apply the results of its makeshift vote, Puigdemont said, though he stopped short of saying how or when he would trigger the process to leave Spain.

• Puerto Rico Is Running Out of Money.

• Dollar, Bonds Are Listless as Oil Drops Below $50. Asian equities began the session with a muted start, with markets in Hong Kong, China, and South Korea all closed for holidays. The S&P 500 Index got a slight boost overnight from data showing American services industries climbed at the fastest pace in 12 years, while private jobs numbers met expectations. The dollar was little changed, below the recent 11-week high. Ten-year Treasury yields held at 2.33 percent as markets assessed the Trump administration’s shortlist of candidates to helm the Federal Reserve. Japan’s Topix index was little changed. Australia’s S&P/ASX 200 Index added 0.1 percent.

Wall Street Journal:

• The Gun Control Mirage. More gun laws won’t stop mass shootings by determined killers.

• GOP Lawmakers Consider Gun-Control Measure. Trump travels to Las Vegas amid calls on Capitol Hill for new regulations in the wake of mass shooting.

MarketWatch.com:

• Some investors see signs stock market ‘on verge’ of a melt-up.

Fox News:

• Las Vegas shooter's girlfriend denies prior knowledge of attack. (video)

• Trump praises ‘bravery’ of first responders in Las Vegas, consoles shooting survivors. (video)

CNBC:

• House vote should keep the Trump trade on the front burner for markets.

• 3 Equifax(EFX) executives should be investigated for insider trading.

• Cigna(CI) won't cover OxyContin prescriptions for 2018, as health insurer targets opioid abuse.

• Auto companies scrambling to catch up with Tesla and tech firms, Morgan Stanley analyst says.

• Google(GOOGL) shows off wireless headphones that it says can translate languages on the fly. (video)

Zero Hedge:

• De-Dollarization & Disintermediation - Russian Mobile Phone Operator Issues First Blockchain-Backed Bond.

• Mueller Takes Over "Trump Dossier" Probe After Intel Committee "Hits A Wall".

• 3 Green Berets Killed In Al Qaeda Ambush Near Mali-Niger Border.

• Soros, Kellogg, Ford: Donor List Of Anti-Trump 'Resistance' Group Revealed.

• 5 Heroes That Risked Everything To Save Lives During The Las Vegas Shooting.

• This Isn't A Joke! The IRS Just Hired Equifax(EFX) To Safeguard Taxpayer Data.

• Credit Spreads Collapse To Post-Crisis Lows As Stock Market 'Greed' Nears 1998 Highs. (graph)

Night Trading 

• Asian equity indices are unch. to +.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 78.25 -.25 basis point. 

• Asia Pacific Sovereign CDS Index 18.25 +1.25 basis points.

• Bloomberg Emerging Markets Currency Index 73.72 -.04%.

• S&P 500 futures -.05%.

• NASDAQ 100 futures -.03%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (STZ)/2.17

• (ISCA)/.03

• (COST)/2.02

• (YUMC)/.56

Economic Releases 
7:30 am EST:

• Challenger Job Cuts YoY for September.

8:30 am EST:

• Initial Jobless Claims for last week are estimated to fall to 265K versus 272K the prior week.

• Continuing Claims are estimated to rise to 1950K versus 1934K prior.

• The Trade Deficit for August is estimated at -$42.7B versus -$43.7B in July.
  

10:00 am EST

• Factory Orders for August are estimated to rise +1.0% versus a -3.3% decline in July.

Upcoming Splits

• (ISRG) 3-for-1

Other Potential Market Movers

• The Fed's George speaking, Fed's Harker speaking, Fed's Williams speaking, Fed's Powell speaking, Eurozone Retail Sales report, (COST)/(FRED)/(LB)/(BKE) monthly sales reports, Bloomberg weekly Consumer Comfort Index, (CLX) investor day and the (ORCL) analyst day could also impact trading today.

BOTTOM LINE:  Asian indices are mostly higher, boosted by industrial and technology shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the day.