Monday Watch

Today's Headlines

Bloomberg:   

• May's Brexit Plan: The Details, The Overtures and The Meaning.  

• German Cars and American Steak: Early Trade War Victims Emerge.

• Pompeo Dismisses North Korea Criticism of Pyongyang Negotiations. 

• Death Toll Rises to 54 as `Historic' Floods Continue in Japan. Asia Stocks Signal Gain; Dollar Near Recent Lows. Asian stocks pointed to gains after a positive Friday session on Wall Street as investors watched for developments in trade tensions between China and the U.S. before earnings season gets underway later this week. The dollar held near a three-week low. Equity futures in Hong Kong, Japan and Australia nudged higher. The dollar comes off the back of its worst week since May and Treasury yields steadied close to the low end of their recent range as investors dissected a mixed U.S. jobs report on Friday and the trade rift with China ramped up a notch. The pound is in focus after the U.K. cabinet member in charge of Brexit discussions resigned from Prime Minister Theresa May’s government. Futures on Japan’s Nikkei 225 was flat in Singapore trading. Futures on Australia’s S&P/ASX 200 Index rose 0.4 percent. Hang Seng futures advanced 1 percent.

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

Wall Street Journal:   

• U.K. Minister in Charge of Brexit Negotiations Resigns.

• For China, Tech Giant Tencent is Both a National Champion and a Threat.

• Stock Buybacks Are Booming, but Share Prices Aren’t Budging.

• How Regulators Averted a Debacle in Credit-Default Swaps.

• Miss America Organization Split by Swimsuit Decision.

• Streaming TV or Movie? Why It Matters to Amazon’s Profits. 
  

• Fed Officials Debate Signal From Flattening Yield Curve.

• Strained NATO Alliance Prepares for Discord at Summit.

• Shipowners on Pace to Scrap $1 Billion in Oil Tankers This Year.

MarketWatch.com:

• Mark Hulbert: Why stock investors should rejoice over Trump’s second year in office.

Fox News:

• At least 4 of the 12 members on youth soccer team trapped in flooded cave have been rescued.

• Top Senate Dem tells colleagues to oppose Trump's Supreme Court pick, suggests sacrificing seats.

CNBC:

• Pompeo brushes off North Korean 'gangster' claim, pursues more talks.

• Silicon Valley firms are facing anger from a new source: Their own employees.

• Here are 2 groups that could blow away expectations when earnings season kicks off.

• How drone photography is carving a niche in construction.

• An energy watcher says oil may jump 10 percent this summer, and could drag gas along with it.

Zero Hedge:      

• "An Absolute Bombshell": Brexit Ministers David And Baker Unexpectedly Quit In Blow To Theresa May.

• Trump Freezes Billions In Obamacare Payments, Outraging Insurers.

• "Shelter In Place": All Hell Breaks Loose In Haiti As Violent Mobs Try To Murder Trapped American Tourists.

• Here Comes Q2 Earnings Season: Expect Stellar Numbers But Watch The Deterioration In Outlooks.

• "I Was There, I Know What Took Place": Pompeo Slams North Korea Criticism Of Denuclearization.

• "We Live In A State Of Emergency": Chicago Protesters Shut Down Highway To Demand Americans Disarm.

• Woman Exposed To Novichok Nerve Agent Has Died.

• Founder Of Movement For Disillusioned Democrats Refused Service At New York Electronics Store.

• Turkey's Erdogan Purges 18,000 Civil Servants With Decree.

• Large-Scale Riots Continue In France For 4th Night.

• US Rents Surge To Record Highs Led By Small-Town Texas Oil-Boom.

Business Insider:

• The coming 'labor shortage' in America is great news for workers.

• BANK OF AMERICA: Oil is now a 'game of chicken' and completely cutting off Iran could send it soaring to $120 a barrel.

• The Fed is thinking about throwing out a key recession indicator.

• The number of tech moguls chartering private jets to Sun Valley next week has become 'chaotic'. 

• How various industries are taking advantage of drones to increase efficiency and cut cost.

• How divers rescued the first 4 boys from the cave in Thailand.
  

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 95.50 unch.

• Asia Pacific Sovereign CDS Index 15.0 unch.

• Bloomberg Emerging Markets Currency Index 70.0 +.03%.

• FTSE 100 futures +.30%

• S&P 500 futures +.17%.

• NASDAQ 100 futures +.18%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (HELE)/1.47

After the Close:

• None of note

Economic Releases

3:00 pm EST

• Consumer Credit for May is estimated to rise to $12.0B versus $9.262B in April.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Neel Kashkari speaking, German Exports report, (PSMT) monthly sales update and the (KKR) investor day could also impact trading today.

BOTTOM LINE: Asian indices are higher, boosted by industrial and technology 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.