Tuesday Watch

Evening Headlines

Bloomberg:

• Asia Futures Point to Mixed Open; Pound Advances. Asian stocks are set for a mixed start after their U.S. counterparts eked out modest gains amid lingering concerns on trade tensions. The dollar slipped while the pound rose on upbeat Brexit comments from the European Union’s chief negotiator. Equity futures advanced in Japan, fell in Hong Kong and China, and were little changed in Australia. The S&P 500 Index broke a four-day slide even as so-called FAANG stocks underperformed. U.S. Treasury 2-year yields climbed to the highest level in a decade amid comments from Atlanta Federal Reserve’s Raphael Bostic and positive consumer credit data. Ten-year Treasury yields ticked lower. Futures on the Nikkei 225 Stock Average rose 0.3 percent in Singapore. Futures on the FTSE China A50 fell 0.1 percent. Futures on Hong Kong’s Hang Seng Index lost 0.5 percent.  

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

• Semiconductor ETF Loses Record Cash Amid Global Chipmaker Rout.

Wall St. Journal:

• Peak China?

• U.S. Orders Closure of PLO Office in D.C.

Fox News:

• Hurricane Florence barrels toward US as SC orders evacuation of entire coast.

• Strzok-Page texts reveal 'coordinated' FBI leak strategy to harm Trump, GOP congressman says.

CNBC: 

• This chart shows the dramatic rise in corporate cash brought home since the tax cuts.

• Gene Munster: If Tesla doesn't overhaul the board right now, it could spell the end for the company

• AliveCor can now detect dangerous blood condition via heart signals, gets FDA 'breakthrough status'.

• Dow stock Home Depot just hit an all-time high as it trades in a 'sweet spot'. 

• After-hours buzz: SONO, NTNX & more.

Zero Hedge:

• New Strzok-Page Texts Discuss FBI "Media Leak Strategy" Within Hours Of Washington Post Bombshell.

• 1.3 Million Ordered To Evacuate As "Nightmare" Hurricane Florence Bears Down On Carolinas.

• US Consumer Credit Hits All Time High As Credit Card Usage Stalls.

• Twitter Suspends Benghazi Hero After He Excoriates Obama.

• Trump Weighing Sanctions On Chinese Officials, Seizure And Freezing Of Chinese Assets.

• "Tax Reform 2.0": Republicans Unveil Second Round Of Proposed Tax Cuts.

• New York City Transforms Into A Retail Wastelend.

• FANG-Less Stocks Drift Aimlessly As Trade War Tensions Loom.

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 81.25 unch. 

• Asia Pacific Sovereign CDS Index 12.75 +.25 basis point

• Bloomberg Emerging Markets Currency Index 65.13 -.03%.

• FTSE 100 futures +.03%.

• S&P 500 futures unch.

• NASDAQ 100 futures +.05%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (USAT)/.03

After the Close:

• None of note

Economic Releases

6:00 am EST

• The NFIB Small Business Optimism Index for August is estimated to rise to 108.0 versus 107.9 in July.

10:00 am EST

• JOLTS Job Openings for July are estimated to rise to 6675 versus 6662 in June. 

• Wholesale Trade Sales MoM for July are estimated to rise +.1% versus a -.1% decline in June.

Upcoming Splits

• None of note

Other Potential Market Movers

• The German ZEW Index, weekly US retail sales reports, $35B 3Y T-Note auction and the (NXPI) analyst day could also impact trading today.

BOTTOM LINE:  Asian indices are modestly higher, boosted 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 75% net long heading into the day.