Tuesday Watch

Evening Headlines

Bloomberg:

• Choking on Beijing's Clean Air Costs. The Asian Infrastructure Investment Bank, conceived as China's answer to the World Bank, approved a $250 million loan to Beijing Gas Group Co., to reduce coal use by connecting more than 200,000 rural households to the natural gas distribution network. It's the AIIB's first investment within China. The bank had better keep its checkbook handy: This new environmental protection drive could cost the Chinese government and its financing vehicles as much as 381 billion yuan ($57.6 billion) in subsidies. Authorities have realized that persuading villagers to stop burning coal is a more effective way of improving air quality in northern China than shutting coal-powered plants, a step that inevitably hurts economic growth.
• Asia Stocks Mixed Ahead of Central Bank Meetings. Benchmarks in Tokyo sat on recent gains, while Korean shares slipped, after U.S. stock indexes hit fresh highs overnight. Most major American gauges advanced, led by more than 1 percent increases in media, telephone and technology-hardware shares. Investors shrugged off a non-fatal explosion in New York in what was called a terrorist attack. Volumes remain lackluster ahead of the year’s final Federal Reserve and European Central Bank meetings. The Topix index and the Nikkei 225 Stock Average were little changed as of 9:26 a.m. in Tokyo. Australia’s S&P/ASX 200 Index rose 0.2 percent and the Kospi index fell 0.5 percent. Futures on Hong Kong’s Hang Seng Index added 0.1 percent. The MSCI Asia Pacific Index was little changed.
• Five Things You Need to Know to Start Your Day. (video)

Wall Street Journal: 

• Botched Suicide Bombing Jolts New York Rush Hour, Injures Four. Police say 27-year-old Akayed Ullah detonated a low-tech explosive device near the Port Authority Bus Terminal.
• U.S. Shoppers Wield Smartphones to Keep a Lid on Consumer Prices. Web-driven comparison shopping complicates Federal Reserve decisions on how much and how fast to raise interest rates; savvy consumers weaken retailers’ pricing power and tamp down inflation.

Fox News: 

• Wife of demoted DOJ official worked for firm behind anti-Trump dossier. (video)

CNBC:

• Why stocks could rip higher on the heels of the Fed meeting this week. (video)
• 'Bitcoin Jesus' is 'really, really concerned' about the future of the digital currency. (video)
• People are taking out mortgages to buy bitcoin, says securities regulator. (video)
• Boeing(BA) lifts dividend, sets new $18 billion share buyback.
• Cisco(CSCO) CEO Chuck Robbins thinks he's finally found the key to growing in China.

Zero Hedge: 

• Ex-Spy Chief Admits Role In 'Deep State' Intelligence War On Trump.
• Bitcoin Futures Tumble As Spot-Arbitrage Collapses. (graph)
• "I Feel Tremendous Guilt": Former Facebook Exec Says Company Is "Ripping Apart The Social Fabric Of Society".
• "It's A Crisis Situation": One Chart Explains Why Obamacare Is Locked In An Inescapable Death Spiral.
• Bond Bears Beware As Ag Prices Hit Record Low. (graph)
• Amazon's 75,000 New Robots Are Your Answer To No Wage Inflation.
• Stocks Soar To Most-Overbought In 22 Years But Bitcoin Futures Debut Dominate. (graph)

Business Insider:

• Obama is campaigning for Roy Moore's Democratic opponent in the Alabama Senate race.

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 71.75 -.75 basis point. 

• Asia Pacific Sovereign CDS Index 14.0 -.25 basis point

• Bloomberg Emerging Markets Currency Index 73.0 -.02%.

• S&P 500 futures +.08%.

• NASDAQ 100 futures +.11%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (PAY)/.43

Economic Releases

6:00 am EST:

• The NFIB Small Business Optimism Index for November is estimated to rise to 104.0 versus 103.8 in October.
  

8:30 am EST

• PPI Final Demand MoM for November is estimated to rise +.3% versus a +.4% gain in October.
• PPI Ex Food and Energy MoM for November is estimated to rise +.2% versus a +.4% gain in October.
  

2:00 pm EST

• The Monthly Budget Statement for November is estimated at -$135.0B versus -$136.7B in October.
  

Upcoming Splits

• (NSP) 2-for-1

Other Potential Market Movers

• The Eurozone ZEW Survey, UK CPI report, Wasde Crop report, $12B 30Y Bond auction, weekly US retail sales reports, Cowen Tech/Media/Telecom conference, (CVS) analyst day, (GE) investor meeting, (MMM) Outlook Meeting, (HI) investor day and the (KMT) investor day could also impact trading today.

BOTTOM LINE:  Asian indices are mostly lower, weighed down by consumer and industrial 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.