Monday Watch

Today's Headlines

Bloomberg: 

• Human Bankers Are Losing to Robots as Nordea Sets a New Standard.

• Emerging Currency Traders Are Being Kept on Their Toes.

• Asia Stocks Open Lower Amid Earnings; Yen Steadies. Asian stocks opened on a soft note on Monday as the ongoing reporting season raised concerns about lofty expectations for earnings and traders prepare for key policy meetings from the world’s biggest central banks. The yen steadied ahead of a crucial week for the Bank of Japan. Equity benchmarks in Japan, Australia and South Korea edged lower, while futures indicated modest declines in Hong Kong. The S&P 500 Index closed weaker Friday and Treasuries climbed as second-quarter U.S. gross domestic product narrowly missed estimates, despite growing at the fastest pace since 2014. The offshore yuan added to last week’s slump, driven in part by China’s moves to ease monetary conditions. The dollar steadied and Treasury yields ticked higher. Japan’s Topix index fell 0.3 percent as of 9:12 a.m. in Tokyo. Australia’s S&P/ASX 200 Index lost 0.6 percent. South Korea’s Kospi index fell 0.2 percent. Futures on Hong Kong’s Hang Seng Index retreated 0.3 percent. Futures on the S&P 500 were down less than 0.1 percent.

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

• Storm of News to Hit Global Economy This Week Before August Calm.

Wall Street Journal: 

• Tax Cuts Bust ‘Secular Stagnation’.

• Fed Looks for Goldilocks Path as Jobless Rate Drops.

• CBS Directors Weigh Moonves Stepping Aside Pending Probe. 

• These Hedge Funds Are Doing Great but Don’t Want Your Money.

• Jack Ma’s Giant Financial Startup Is Shaking the Chinese Banking System. 

• More Potash Is Coming to an Already Crowded Fertilizer Market.

MarketWatch.com:

• Kudlow says U.S. will ‘immediately’ start new trade talks with EU.

Fox News:

• Trump tells Dems he will shutter government if he doesn't get the wall, votes on border security policies.

• WATCH: Ocasio-Cortez fans stumped on how socialism would be funded.

CNBC:

• Alphabet(GOOG) is looking even better after Facebook's disappointing earnings.

• Energy Secretary Rick Perry: ‘True energy independence is finally.

• Almost half of Americans shop online while drunk—here's how much it's costing them within our grasp’.

• BMW to raise prices of two US-made SUV models in China.

Zero Hedge:            

• Why Americans Are About To Experience Sharply Higher Prices.

• Iran's Currency Craters Most On Record Amid Panicked Scramble Into US Dollars.

• "No Experience Necessary": Employers Slash Job Requirements Amid Worker Shortage.

• The Two Things Goldman's Clients Are Most Worried About Now.

• Is China's Easing Offensive Or Defensive?

• "China's Economy Is Held Together By Capital Controls. If Those Fail, The Whole System Fails".

• American Public "Will Be Shocked" At Redacted Portions Of Carter Page FISA App: Nunes.

• Hedge Fund CIO: It Makes You Wonder If China Isn't Pushing The "Russian" Narrative.

• Martin Armstrong: Is CNN Creating A Civil War?

• Giuliani Unloads; Talks Tampered Cohen Tapes And "Witch Hunt" In Wide-Ranging Sunday Interviews.

• 40 Years Of Pummeling The Postal Service.

• Ordinary US Citizens Now Surveilled By Air Marshals As Part Of Secret New Program.

• Trump Threatens To "Shut Down" Government Over Border Security, Meets With NYT Publisher.

• Crime Rate In The U.K. Soars While 90% Of Recorded Crime Goes Uncharged.

• UK Household Debt "Worse Than At Any Time On Record".

Business Insider:

• The latest internet craze includes dancing alongside moving cars — and, surprise, people are getting badly hurt.

• Truck drivers' salaries are experiencing an 'unprecedented' jump, but it's not enough to end the driver shortage that's making everything more expensive.

Night Trading

• Asian indices are -.50% to unch. on average.

• Asia Ex-Japan Investment Grade CDS Index 77.50 +1.0 basis point.

• Asia Pacific Sovereign CDS Index 12.0 -.25 basis point.

• Bloomberg Emerging Markets Currency Index 69.99 -.01%.

• FTSE 100 futures -.59%

• S&P 500 futures -.17%.

• NASDAQ 100 futures -.31%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (CAT)/2.74

• (DO)/-.39

• (L)/.73

• (STX)/1.45

• (SOHU)/-1.50

• (AMG)/3.59

After the Close:

• (AKS)/.21

• (AVB)/2.20

• (ILMN)/1.11

• (KLAC)/2.12

• (RIG)/-.18

• (VNO)/1.08

Economic Releases
10:00 am EST

• Pending Home Sales MoM for June is estimated to rise +.4% versus a -.5% decline in May.
  

10:30 am EST

• Dallas Fed Manufacturing Activity for July is estimated to fall to 31.0 versus 36.5 in June.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Japan Industrial Production report and the Eurozone Consumer Confidence report could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and industrial shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 50% net long heading into the week.