Monday Watch

Today's Headlines

Bloomberg:     

• Turkey's Policy Making Paralysis Promises More Tumult in Markets.

• Losing Faith Fast, Istanbul Merchants Throw in Towel on the Lira.     

• Lira Extends Retreat as Turkey Heads Toward a Financial Crisis.

• China’s Giant Banks Top This Ranking. And That’s a Cause for Concern.

• Singapore's Economic Growth Eases to 0.6%, Lower Than Projected.

• Saudi Fund in Talks to Invest in Tesla(TSLA) Buyout Deal. Stocks, Euro Slip on Turkey Worries; Yen Gains: Markets Wrap. Stocks slipped in Asia with the euro and emerging-market currencies, with Treasuries and the yen nudging higher, as turmoil in Turkey that’s sparked wider concern of potential market contagion triggered action from banking regulators. Japanese stocks and U.S. equity futures fell, with trading set to be dominated by events in Turkey. President Recep Tayyip Erdogan maintained his defiance toward the U.S. and financial-market orthodoxy in speeches on Sunday even after the nation’s currency plummeted. The lira declined early Monday in Asia before recovering somewhat after the country’s banking regulator limited swaps transactions, triggering a slight easing to the risk-off mood in Asian trading. Japan’s Topix index slid 1.1 percent as of 9:20 a.m. in Tokyo. South Korea’s Kospi index lost 0.6 percent. Futures on Hong Kong’s Hang Seng Index dropped 0.7 percent. Australia’s S&P/ASX 200 Index sank 0.3 percent. Futures on the S&P 500 Index were down 0.2 percent. 

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

• Erdogan Defiant, the Next Recession, China's De-Risking: Eco Day.

Wall Street Journal: 

• Plane Thief Said He Trained on Games, Didn’t Plan to Land.

• Google Woos Partners for Potential China Expansion.

• U.S. Takes Trade Fight to Smaller Nations. 

• Private-Equity Firms Push Into Lending.

• In Orban’s Hungary, a Glimpse of Europe’s Demise.

MarketWatch.com:

• People are faking wheelchair need at airports to get through security faster.

• Jeff Reeves: S&P 500 is stalling, but these 3 sectors are scaling fresh highs like clockwork.

• Rumors of the death of the housing market may be exaggerated.

Fox News:

• Police unions call for NFL boycotts, refunds after latest anthem protests.

• Socialist Dems inspired by Sanders, Ocasio-Cortez suffer yet another blow.

• Counterprotesters, Antifa confront 'Unite the Right' at tense march as storm rolls in.

CNBC:

• Why one market bull predicts millennials, baby boomers will help the US notch an economic milestone.

• Trump applauds Harley Davidson boycott, says shift of production abroad is a 'really bad move'.   

• These 5 indicators suggest stocks will break out to new highs.

Zero Hedge:               

• Turkish Lira Crashes Through 7 As Erdogan Threatens To Unleash "Plan B Or C...".

• 72% Of Americans Say It's "Essential" For US To Be World Space Exploration Leader.

• Social Unrest Breaks Out In China After "Panic" Bank Run On Peer-2-Peer Lenders.

• Facebook Brags They Can Change 'Any Public Opinion'.

• Capital Controls Next? Lira Rebounds After Turkey Bank Regulator Limits FX Swap Operations.

• In Furious Rant Erdogan Lashes Out At Trump: "We See The Game You're Playing, We Dare You".

• Infowars Website Traffic Explodes After Silicon Valley Blacklists Alex Jones Empire.

• Mapping The 22 Cities With The Most Million-Dollar Homes In America.

• "A Devastating Scenario": Brazil Breaks Own Record For Number Of Murders, Ahead Of Election.

• 20 Shot Overnight In Chicago: "I’m Scared To Walk To The Corner Store".

Business Insider:

• 'Once it starts, it escalates': Crime is rising in Mexico City, and police are trying to swoop down on it before it gets worse.

Telegraph:

• The Brexit jobs bloodbath that never arrived.

Night Trading

• Asian indices are -1.0% to -.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 83.75 +3.75 basis points.

• Asia Pacific Sovereign CDS Index 10.5 +.25 basis point.

• Bloomberg Emerging Markets Currency Index 65.75 -.33%.

• FTSE 100 futures -.25%

• S&P 500 futures -.24%.

• NASDAQ 100 futures -.26%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (JKS)/.33

• (SYY)/.93

• (TSG)/.55

After the Close:

• (TDW)/-.42

• (VIPS)/.94

• (YY)/1.88

Economic Releases

• None of note

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Monthly OPEC Oil Market report and the German Wholesale Price report could also impact trading today.

BOTTOM LINE: Asian indices are lower, weighed down by financial and industrial shares in the region. I expect US stocks to open modestly lower and to maintain losses into the afternoon.  The Portfolio is 25% net long heading into the week.