Tuesday Watch

Evening Headlines

Bloomberg:

• Merkel Defuses Coalition Clash Over Migration With Compromise. 

• ECB Faces Ghost of Rate Hikes Past a Decade After 2008 Misstep.

• U.K. Lawmakers Ask BOE, Treasury for Assessment of Brexit Deal.

• Asia Stocks Recover From Selloff; Crude Oil Gains. Stocks in Japan, South Korea and Australia recouped some of yesterday’s declines as investors continue to weigh the impact of potential global trade restrictions on economic growth. The dollar held on to gains, while Chinese assets remain in focus following another battering for stocks. Share indexes in Tokyo, Sydney and Seoul climbed. Hong Kong returns after Monday’s holiday when pronounced moves lower were seen across Asian equity markets. In the U.S., the S&P 500 Index recovered its early losses to end the day higher as technology shares rose. Treasuries were steady, alongside gold and the yen. Japan’s Topix index rose 0.3 percent as of 9:07 a.m. in Tokyo. Australia’s S&P/ASX 200 Index added 0.1 percent. South Korea’s Kospi advanced 0.6 percent. Futures on S&P 500 were flat.  

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

Wall Street Journal:

• Fed Gave Wall Street Titans Path Around Stress-Test Failure.

• Tech’s ‘Dirty Secret’: App Developers Scanning Gmail.

• The Abortion Scare Campaign. 

• Vote Resets U.S.-Mexico Relations.

• IPO Market Posts Blistering First Half.

• Democrats Weigh Politics of Calls to Eliminate ICE.

MarketWatch.com:

• Stick with U.S. stocks — and avoid these 7 emerging-market traps.

• ‘It’s hard to be bearish stocks’ after looking at this chart, says veteran trader.

• Avi Gilburt: The S&P 500 still has two bullish paths.

Fox News:

• Bid to split California into 3 states gains traction – could it really happen?

• Cleric: Obama naturalized thousands of Iranian VIPs during nuke talks.

CNBC:      

• Virtual doctor start-up American Well is raising over $300 million and Philips is a new investor.

• After-hours buzz: MLHR, ACXM & more.

• Goldman: The second half is going to be difficult, but these stocks with strong balance sheets should thrive.

Zero Hedge:

• Democratic Socialists Openly Calling For Communism After Ocasio-Cortez Win.

• SEC Joins Federal Facebook Probe As Scope Broadens.

• Trump To Block Chinese Telecom Giant From Entering US Market.

• "Monetizing Poor People": Obama Treasury Secretary Tim Geithner Is Now A Predatory Lender.

• 7 Months After Fake Flynn Story "Epic Mistake", ABC Quietly Lets Brian Ross Go.

• Euro Jumps After CSU Leader Says Migration Clash With Merkel Resolved.

• Tesla(TSLA) Confirms Chief Engineer Has Left.

• Chamber Of Commerce Turns On Trump With Campaign To Oppose Tariffs.

• Jim Kunstler Fears The Democrats' "Turn For The Worse".

• Bitcoin Bounced, Tesla Trounced, Platinum Pummelled, Yield Curve Crushed.

Business Insider:

• The US is pumping out more oil than 12 of 14 OPEC members.

• Rental prices are soaring around the US.

Night Trading 

• Asian equity indices are unch. to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 94.5 -1.0 basis point. 

• Asia Pacific Sovereign CDS Index 15.5 +.75 basis point.

• Bloomberg Emerging Markets Currency Index 69.16 +.02%.

• FTSE 100 futures +.17%.

• S&P 500 futures -.02%.

• NASDAQ 100 futures -.06%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (AYI)/2.17

• (AZZ)/.48

Economic Releases
10:00 am EST

• Factory Orders for May are estimated unch. versus a -.8% decline in April.
  

Afternoon

• Wards Total Vehicle Sales for June is estimated to rise to 17.0M versus 16.81M in May.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone Retail Sales report and the US Weekly Retail Sales report could also impact trading today.

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