BETWEEN THE HEDGES: Today's Headlines

Bloomberg:

For Catalans, the Question Is Compliance or Defiance of Madrid. Normal weekend routines like shopping, soccer and strolling prevailed in Catalonia even as the first test of Spanish Prime Minister Mariano Rajoy’s decision to take over the breakaway region approached, with Catalans weighing compliance versus defiance. When schools and government offices open Monday, teachers and civil servants will decide whether to follow the ousted Catalan leaders’ calls to resist their Spanish masters or acquiesce to the new reality. A smooth transition in the Catalan police force, with the new chief accepting Madrid’s rule, marked an initial success for Rajoy.

House Tax Writer Gives Ground on State and Local Tax Break. Bowing to concerns from Republican House members in high-tax states, the chamber’s chief tax writer said he’ll preserve a federal income-tax break for property taxes. “At the urging of lawmakers, we are restoring an itemized property tax deduction to help taxpayers with local tax burdens,” House Ways and Means Chairman Kevin Brady said in a statement Saturday afternoon.

Oil Investors Roll the Dice on OPEC After Saudi Prince Ups the Ante. The OPEC trade is back, and Saudi Arabia is in the driver’s seat. Just before the de facto OPEC leader doubled down on its plan to drain the oil glut, propelling Brent crude prices beyond $60 a barrel for the first time since 2015, hedge funds were almost as bullish on the global benchmark as they’ve ever been. Short-sellers retreated to levels last seen in February, when OPEC production cuts were fueling an oil price surge.

The FANG Health Scare Ends With a Bang. (video) All year, people have wondered if something was wrong with the market. Volatility was gone, stocks hardly moved. On Friday, they moved, though maybe not in the direction everyone was expecting. Not content with all the tiny gains that were lifting equities toward the best year since 2013, traders emboldened by a scorching dose of tech earnings sent the Nasdaq 100 Index to its biggest rally in 19 months. About $185 billion was added to the market cap of the five largest companies alone, a rally reminiscent of the glory days of the tech bubble. The surge ended a brief bout of nerves caused by a run of down days in technology megacaps. It left the Nasdaq 100 up 28 percent in 2017, its best performance relative to the S&P 500 Index since the start of the bull run.

Wall Street Journal:

First Charges Filed in Russia Probe Led by Special Counsel Robert Mueller. At least one defendant is expected to be taken into custody as soon as Monday.

Trump Likely to Name Jerome Powell Next Fed Chairman—Source. Decision not final but at this point he has settled on Mr. Powell as selection.

Saudis Back More Supply Cuts in Support of Oil Prices. Statement strongly suggests OPEC will agree to continuing production curb at its next meeting.

Barron's: