Monday Watch

Today's Headlines

Bloomberg:

• China's Manufacturing PMI Posts 1st Increase Since Nov. (video)

• Asian Stocks Set for Muted Start to Second Quarter. Asian shares are set for a muted open as the first trading day of the second quarter begins. Volumes are expected to be subdued as many markets across the world remain closed for the Easter holiday. Futures on the Nikkei 225 index were little changed Monday morning. The yen edged lower even as a poll showed improved support for Prime Minister Shinzo Abe’s cabinet. Chinese stock futures were also flat ahead of purchasing managers data. The dollar drifted and West Texas crude oil steadied around $65 per barrel. Nikkei 225 futures were little changed.

Wall Street Journal:

• Climate Alarmists May Inherit the Wind. They likened a courtroom ‘tutorial’ to the Scopes Monkey Trial. But their side got schooled.

• Track the Markets: Winners and Losers. Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities. 

• These Developing Countries Are Getting Old Before They Get Rich, With Dire Consequences. Mix of more retirees, fewer workers to support each one, leaves budgets of countries such as Brazil with little money to invest in growth or basic services.

• No Rent, Cheap Flights, $100 Art: How One Hedge Fund Keeps Costs Low. Devet Capital’s model has helped the small fund survive in a sector where fund closures have outnumbered new launches for the past three years.

MarketWatch.com:

• Tesla(TSLA) bankrupt? Elon Musk cracks jokes after worst month in 7 years.

• IPO proceeds hit 3-year high in first quarter, fueled by foreign companies’ offerings.

Fox News:

• London murder rate beats New York for month as stabbings surge.

CNBC: 

• Why Walmart(WMT) may have designs on Humana(HUM), and what it thinks it could get from a deal.

• College student cryptominers are finding it harder to turn a profit as costs rise, bitcoin falls.

Zero Hedge:

• The History Of US Trade Policy In One Annotated Chart.

• Chinese Space Station Set To Enter Earth's Atmosphere At Any Moment: Live Tracker. (map)

• China Slaps Tariffs On US Imports Including Pork, Nuts And Wine.

• "No More DACA Deal" Trump Booms, "Must Go Nuclear" As "Refugee Caravan" Approaches.

• Cryptogeddon - Bitcoin Breaks Below $7,000; Ether Down 75% From Highs.

• Why WSJ Insists Trump's Crackdown Against Amazon Would Be "A Long Shot" .

• US Power Grid Vulnerable To "Devastating" Attack, NERC Finds.

Night Trading

• Asian indices are +.25% to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 78.0 -1.25 basis points.

• Asia Pacific Sovereign CDS Index 13.25 -.25 basis point.

• Bloomberg Emerging Markets Currency Index 75.37 +.03%. 

• FTSE 100 futures n/a.

• S&P 500 futures -.26%.

• NASDAQ 100 futures -.48%.

Morning Preview Links

Earnings of Note

Company/Estimate

• (CALM)/1.38

Economic Releases
10:00 am EST

• Construction Spending MoM for February is estimated to rise +.3% versus unch. in January.

• ISM Manufacturing for March is estimated to fall to 60.0 versus 60.8 in February.

• ISM Prices Paid for March is estimated to fall to 72.5 versus 74.2 in February.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Kashkari speaking, Japan Car Sales report and the (URBN) QTD sales update could also impact trading today.

BOTTOM LINE: Asian indices are modestly higher, boosted by technology and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the week.