Monday Watch

Today's Headlines

Bloomberg: 

• U.S. Puts Tariffs Against China ‘On Hold,’ Mnuchin Says. The Trump administration won’t impose tariffs on Chinese products for now, after the two nations made progress on trade issues during two days of talks, Treasury Secretary Steven Mnuchin said. “We’re putting the trade war on hold. So right now, we have agreed to put the tariffs on hold while we try to execute the framework,” Mnuchin said on “Fox News Sunday.” President Donald Trump has threatened to impose tariffs on as much as $150 billion in Chinese imports to punish Beijing for allegedly violating American intellectual property and unfair trade practices. China vowed to retaliate with tariffs on everything from soybeans to airplanes. 

• Robot at $390 Billion Nordea Wealth Unit Has Big Plans. 

• Stock Futures Climb on U.S.-China Trade War Pause. Asian stocks are set to start the week higher and U.S. equity futures jumped after U.S. Treasury Secretary Steven Mnuchin said the Trump administration won’t impose tariffs on Chinese products for now. Japanese futures rose in Chicago while S&P 500 contracts gained 0.7 percent, an unusually large gain for early Asian trading. Oil futures also climbed. Mnuchin said the U.S. was “putting the trade war on hold,” amid progress in talks between the two nations. Stocks had closed lower Friday and Treasury yields dropped under 3.1 percent amid mixed signals on trade. Nikkei 225 futures up 0.4% in Chicago. S&P 500 futures up 0.7%.

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

Wall Street Journal:

• U.S. Government Bonds Pay More Than Debt From Other Developed Nations.

• Split in Goods and Services Inflation Underscores Fed’s Challenge.

• Behind a Hedge Fund’s Billion-Dollar Bet on Busted Oil Firms.

• The Mystery of the Small-Cap Rally.

Fox News:

• Trump wants DOJ to probe whether feds infiltrated 2016 campaign -- and if Obama WH asked for it.

CNBC:

• New incentives for hospitals are improving quality of care for patients at home.

• Small cap stocks are in the ‘early innings’ of a record run, a Wall Street veteran says.

• More states are starting tax-advantaged savings accounts aimed at first-time home buyers. 

• How hundreds of apps can empower stalkers to track their victims.

Zero Hedge:   

• Trump Erupts In Angry Tweetstorm: "When Does This Witch Hunt STOP", Slams Hillary, Podesta.

• These Are The Top 50 Hedge Fund Long And Short Positions.

• Mueller To Wrap Up Trump Obstruction Probe By Sept. 1: Giuliani.

• Trump To Order Probe Into FBI, DOJ Surveillance Of His Campaign.

• Mnuchin: US-China Trade War "On Hold", But NAFTA Still "Far Apart".

• Thousands In Sweden Have Implanted Microchips Under Their Skin.

• Brussels Rises In Revolt Against Washington: A Turning Point In US-European Relations. 

• National Economic Disparity Could Spell Political Shifts.

Business Insider:

• Oil hit $80 but OPEC isn't about to start ramping up production.

Telegraph:

• Why Italy could yet blow the Euro and European Union apart.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 75.5 -.25 basis point.

• Asia Pacific Sovereign CDS Index 13.0 unch.

• Bloomberg Emerging Markets Currency Index 70.98 +.01%.

• FTSE 100 futures +.39%.

• S&P 500 futures +.64%.

• NASDAQ 100 futures +.81%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (MNRO)/.50

After the Close:

• (NDSN)/1.43 

Economic Releases
8:30 am EST

• The Chicago Fed National Activity Index for April.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Bostic speaking, Fed's Kashkari speaking, Fed's Harker speaking, Treasury Deadline for China Investment Restrictions, Barclays High-Yield Bond Conference, UBS Oil/Gas Conference, UBS Healthcare Conference, (MU) analyst event and the (MNRO) investor day could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and consumer shares in the region. I expect US stocks to open modestly higher and to maintain gains into the afternoon.  The Portfolio is 75% net long heading into the week.