Monday Watch

Today's Headlines

Bloomberg: 

• Trump Thanks North Korea for ‘Smart’ Move to Dismantle Test Site. 

• China's Stock Market Is About to Burst Onto the Global Stage.

• Asian Stocks Set for Muted Start; Dollar Steady: Markets Wrap. Asian stocks are set for a muted start to trading Monday with futures in Japan, Australia and Hong Kong all little changed. Focus in the region turns to Malaysia, where markets open for the first time since last week’s historic election. U.S. stocks closed slightly higher Friday, capping their best week in two months amid growing conviction that inflation will remain tame and as trade tensions eased. The greenback finished the week little changed, while 10-year Treasury yields steadied below 3 percent. Emerging market shares posted their first weekly gain in four weeks. Futures on the Nikkei 225 Stock Average were down less than 0.1 percent in Singapore. Australia’s S&P/ASX 200 Index rose less than than 0.1 percent. Hong Kong Hang Seng Index futures added less than 0.1 percent. S&P 500 Index futures increased 0.2 percent as of 7:22 a.m. in Tokyo.

• Five Things You Need to Know to Start Your Day.

• U.A.E. Sees OPEC Oil Capacity ‘Buffer’ Offsetting Iran Sanctions. 

• Flat U.S. Yield Curve Is Big Question for Parade of Fed Speakers.

Wall Street Journal:

• House Freedom Caucus Faces Tough Fights in Midterms.

• Family of Suicide Bombers Attacks Churches in Indonesia.

• Recycling, Once Embraced by Businesses and Environmentalists, Is Now Under Siege.

• U.S. Businesses to Make Their Case Against China Tariffs.

• Made in China: Beijing’s New Aircraft Carrier Hits the Water.

• Bolton: U.S. to Impose Sanctions on European Companies in Iran.

• Trump Keeps Up Pressure on Auto Makers to Generate U.S. Jobs.

Fox News:

• Trump wants long-term deal with North Korea's Kim during summit: Pompeo.

CNBC:

• Bitcoin conferences flood New York, and bring millions in ticket sales with them.

• New deadline for NAFTA could make for an interesting week in markets.

• Abu Dhabi oil boss sees a 'huge growth opportunity' in the refining sector.

• Bullish investors have a lock on the oil market, putting $100 a barrel in play, market veteran says.

• Peace talks ignite land buying frenzy along South Korea's fortified border.

Zero Hedge:

• Happy Mothers Day America: 12 Million Millennials Still Live With Their Moms.

• John Kerry Spotted In Secret Meeting With Iranian Officials As Bolton Threatens EU Firms With Sanctions.

• Iran Threatened To Name Politicians Who Took Bribes To Pass Nuclear Deal.

• Did The Democrats Just Realize The Russia Narrative Is Not Helping?

• US Treasury Shorts Hit Record High As Foreign Banks Dump Bonds.

• Trump Backs Down On China Threat: Instructs Commerce Dept To Rescue ZTE.

• Italy, A Parallel Currency, And Immigration – Merkel's Worst Nightmare.

Business Insider:

• The moms of 'SNL' cast members came on to tell them they do too much politics in amusing Mother's Day sketch.

• A new fissure from the Hawaii volcano is spattering lava — and it's just east of a geothermal energy plant.

• Pompeo says American companies could invest in North Korea if Kim Jong Un meets US demands.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 74.5 -1.0 basis point.

• Asia Pacific Sovereign CDS Index 12.0 -.5 basis point.

• Bloomberg Emerging Markets Currency Index 72.44 +.05%.

• FTSE 100 futures -.06%.

• S&P 500 futures +.27%.

• NASDAQ 100 futures +.40%.

Morning Preview Links

Earnings of Note

Company/Estimate

• (MZOR)/-.04

• (A)/.64

• (ITRI)/.13

• (TDW)/-.55

Economic Releases

• None of note

Upcoming Splits

• (HLF) 2-for-1
  

Other Potential Market Movers

• The Fed's Mester speaking, Fed's Bullard speaking, Japan Bond Purchases report, Monthly OPEC oil market report, RBC Auto/Industrials/Transports Conference, JPMorgan Homebuilding/Building Products Conference, Piper Jaffray Institutions Conference and the (LPX) investor day could also impact trading today.

BOTTOM LINE: Asian indices are slightly higher, boosted by technology 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 week.