Tuesday Watch

Evening Headlines

Bloomberg:     

• Australia May Follow Trump in Moving Israel Embassy to Jerusalem.

• Asian Stocks Set for Mixed Open; Dollar Declines. Asian stocks were poised for a muted start to trading after a decline in their U.S. counterparts Monday with technology shares underperforming. The dollar touched a two-week low against peers, while Treasury yields steadied amid a backdrop of ongoing global tensions. Japanese futures were little changed, while they ticked higher in China and Hong Kong. The tech-heavy Nasdaq indexes led losses and the S&P 500 Index slipped, holding near the key 200-day moving average. The dollar’s slide came ahead of a U.S. Treasury currency manipulation report that’s expected this week. The 10-year Treasury yield traded around 3.15 percent after U.S. retail sales fell short of estimates. Oil advanced for a second day amid tensions between Saudi Arabia and the U.S. over the disappearance of a prominent journalist. Gold and the yen extended gains amid the risk-off tone. Futures on the Nikkei 225 Stock Average were little changed in Singapore. Futures on Australia’s S&P/ASX 200 Index were flat. Futures on the FTSE China A50 rose 0.2 percent. Futures on Hong Kong’s Hang Seng Index climbed 0.5 percent.  

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

• Trump's Yuan Claim, U.S. Deficit Spirals, Yen Supremacy: Eco Day.

• Hedge Funds at the ‘Core’ of Stock Slump May Be Done Offloading.

• The Suspense Builds for Goldman and Morgan Stanley Results.  

• Adobe(ADBE) Gives Rosy 2019 Forecast on Proliferating Product Lineup.

Wall St. Journal:

• Sears, a Onetime Retail Giant, Now Banks on Bankruptcy.

• An Asian-American Dissident at Harvard. 

• Saudis Weigh Saying Journalist Was Killed by Mistake.

• Emerging-Markets Selloffs: This One Is Different. 

• Italy’s Draft Budget Would Widen Deficit.

Fox News: 

• JASON CHAFFETZ: Here's why Trump needs to show Jeff Sessions the door.

• Ex-Obama staffer rips Warren for releasing DNA test close to midterms.

CNBC:       

• Twilio(TWLO) just spent $2 billion on a company that helps send mass emails.

• Don't expect a big Democratic wave this fall, a new CNBC poll says.

• After-hours buzz: ADBE, JBHT & more.

• Goldman says the sell-off is just about over and tells investors to get back into growth stocks.

• Facebook(FB) will ban "misinformation" around voting during the midterm elections.

Zero Hedge: 

• Saudi Arabia To Admit Khashoggi Killed During "Botched Interrogation".

• Elizabeth Warren Savaged On Social Media As DNA Gambit Backfires; Cherokee Nation Furious.

• Facebook(FB) Purged Pages Based On 'PropOrNot' Blacklist Promoted By Washington Post.

• The People "Stopping Election Interference" Are The Ones Actually Rigging The Election.

• Stormy Daniels Lawsuit Dismissed, Trump Entitled To Legal Fees.

• Surveillance Capitalism: Monetizing The Smartphone User.

• Microsoft Co-Founder Paul Allen Dies Of Cancer At Age 65.

• Who Was Hit The Hardest During Last Week's Market Rout?

• Students "Feel Unsafe" - Start Petition To Rename 'Clarence Thomas' Building.

• Democrats Told To Spend "As Little Time As Possible" Campaigning On Open-Border Immigration.

• Italian Cabinet Approves 2019 Budget, Sends Plan To Brussels.

• Gold Extends Gains As Bonds, Stocks, Dollar Slide.

Business Insider:

• 'Inappropriate and wrong': Cherokee Nation official throws ice-cold water on Elizabeth Warren's DNA test of Native American heritage.

• The 50 Starbucks orders that may be most damaging to your health.

Telegraph:          

• Italians shift money to Swiss safe-haven on fears of euro rupture.

Night Trading 

• Asian equity indices are -.25% to +.50% on average.

• Asia Ex-Japan Investment Grade CDS Index 88.25 +1.0 basis point. 

• Asia Pacific Sovereign CDS Index 9.75 -.5 basis point.

• Bloomberg Emerging Markets Currency Index 66.98 +.03%.

• FTSE 100 futures -.04%.

• S&P 500 futures +.25%.

• NASDAQ 100 futures +.42%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (BLK)/6.86

• (CMA)/1.78

• (DPZ)/1.75

• (GS)/5.34

• (JNJ)/2.03

• (MS)/1.01

• (PGR)/1.11

• (UNH)/3.30

After the Close:

• (CSX)/.94

• (IBM)/3.40

• (LRCX)/3.21

• (NFLX)/.68

• (UAL)/3.07

Economic Releases

9:15 am EST

• Industrial Production MoM for September is estimated to rise +.2% versus a +.4% gain in August.

• Capacity Utilization for September is estimated to rise to 78.2% versus 78.1% in August.

• Manufacturing Production for September is estimated to rise +.2% versus a +.2% gain in August.
  

10:00 am EST

• The NAHB Housing Market Index for October is estimated to fall to 66.0 versus 67.0 in September.

• JOLTS Job Openings for August are estimated to fall to 6900 versus 6939 in September.
  

4:00 pm EST

• Total Net TIC Flows for August are estimated to rise to $60.3B versus $52.2B in September.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The German ZEW Index, weekly US retail sales reports and the (MRVL) investor day could also impact trading today.

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