Tuesday Watch

Evening Headlines

Bloomberg:       

• Trump Says He’s ‘Not Satisfied’ as Mnuchin Meets Saudi Prince.  

• Bank of America Is Already Calling Time on China Stock Rally. 

• Asian Stocks Resume Declines; Dollar Holds Gain. Asian equities opened lower as U.S. futures built on Monday declines ahead of a slew of key earnings reports this week. The dollar traded around the highest level in two months. Stocks fell in Japan, Australia and South Korea. Futures in China and Hong Kong were lower, suggesting the biggest jump in more two years in the Chineseequities Monday may not extend. Earlier in the U.S., banks and energy stocks weighed on the S&P 500 Index though the FANG cohort lifted tech-heavy Nasdaq indexes ahead of megacap earnings from the likes of Alphabet and Twitter. Treasury yields dipped and oil was stable near a five-week low. Japan’s Topix index fell 1.1 percent as of 9:14 a.m. in Tokyo. The S&P/ASX 200 Index dropped 0.6 percent. Hong Kong Hang Seng Index contracts lost 0.5 percent. FTSE China A50 futures were declined 0.4 percent. South Korea’s Kospi index lost 0.7 percent. S&P 500 futures fell 0.4 percent.  

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

• U.S. Growth View, China Boosts Cash, Trump Vows Tax Cut: Eco Day.

• Banks, Builders Trounced on Interest Rate Worries.   

• Now Apps Can Track You Even After You Uninstall Them.

Wall St. Journal:

• Trump Threatens to Cut Foreign Aid Over Migrant Caravan.

• The Steel Industry Gets What It Wants on Tariffs.

• Trump ‘Not Satisfied’ With Saudi Explanation on Khashoggi’s Death.

• Banks’ Golden Deposits Are Heading Out the Door.

• The Illegal Ingredients in Your Dietary Supplements.

• Italy Vows to Stick to Budget That Breaches EU Rules.

• States Cleared to Allow Less-Comprehensive Health Plans.

MarketWatch.com:

• Hurricane Willa churns toward Mexico as a ‘potentially catastrophic’ Category 5 storm.

Fox News: 

• GERALDO RIVERA: How immigration backers should strike a deal with Trump.

CNBC:         

• Chinese official tells American investors at a meeting: We don't fear a trade war with the US.

• Stocks making the biggest moves after hours: Cadence, Zions Bancorp and more. 

• Facebook exodus continues as Oculus co-founder Brendan Iribe leaves.

• Mattis is 'completely aligned' with Trump on pulling the US from a Russian arms control treaty.

• Apple is probably the best tech bet heading into earnings, says venture capitalist Gene Munster.

• Here are the major Facebook execs who have left in 2018 so far.

Zero Hedge: 

• Are Millennials About To Get Slaughtered?

• Mutiny, Class, Authority, And Respect - Why America's Elites Are Panicking.

• WSJ Op-Ed Cracks The Code: Why Liberal Intellectuals Hate Trump.

• Paid Protest Firm "Crowds On Demand" Sued In $23 Million Extortion Plot.

• The Real Reason Why We're So Crazy And Miserable All The Time.

• "Private Jets & 5-Star Hotels" - Explosive Report Alleges Avenatti Lived Lavish Lifestyle While Owing Millions To IRS .

• 7 Million Americans Are About To Get An Artificial Boost To Their FICO Scores.

• China Rescue Fails To Save EU, US Markets - Banks, Builders, & Bud Stocks Battered.

Night Trading 

• Asian equity indices are -1.25% to -.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 88.0 -.25 basis point. 

• Asia Pacific Sovereign CDS Index 9.75 unch.

• Bloomberg Emerging Markets Currency Index 66.94 -.06%.

• FTSE 100 futures -.41%.

• S&P 500 futures -.58%.

• NASDAQ 100 futures -.57%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (MMM)/2.70

• (BIIB)/6.76

• (CAT)/2.85

• (CIT)/1.14

• (GLW)/.48

• (FITB)/.63

• (HOG)/.54

• (JBLU)/.42

• (LMT)/4.31

• (MCD)/1.99

• (PCAR)/1.52

• (PHM)/.94

• (DGX)/1.68

• (RF)/.36

• (UTX)/1.82

After the Close:

• (COF)/2.87

• (CSL)/1.73

• (CB)/2.39

• (IEX)/1.31

• (ILMN)/1.26

• (JNPR)/.44

• (IRBT)/.52

• (RHI)/.92

• (TER)/.63

• (TXN)/1.58

• (VMI)/1.78

• (VAR)/1.20

Economic Releases

10:00 am EST

• The Richmond Fed Manufacturing Index for October is estimated to fall to 24.0 versus 29.0 in September.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Kashkari speaking, Fed's Bostic speaking, Fed's Evans speaking, $38B 2-Year T-Note auction and the Eurozone Consumer Confidence report could also impact trading today.

BOTTOM LINE:  Asian indices are lower, weighed down by technology and financial shares in the region. I expect US stocks to open modestly lower and to maintain lossesinto the afternoon.  The Portfolio is 50% net long heading into the day.