Monday Watch

Today's Headlines

Bloomberg:          

• May Says Leadership Challenge Threshold Not Met: Brexit Update.     
• China's Market Rescue Unleashes Hot Money Seeking Risky Stocks.  
• Cheap Power Matters More to Australians Than Climate Change, Poll Shows.
• China's Daisy Chain of Debt Guarantees Looms as Systemic Danger.
• Italy’s Di Maio Stands Firm on Reforms Planned in 2019 Budget. 
• U.S. Stock Futures Slip With Aussie on Trade Woes. U.S. stock-index futures and the Australian dollar fell as investors weighed U.S.-China ructions that showed no sign of improvement over the weekend. Equities in Asia looked set to kick off the week in mixed fashion. Tension between Chinese President Xi Jinping and U.S. Vice President Mike Pence quashed optimism that relations would improve at Group of 20 meetings starting next week as the Asia-Pacific Economic Cooperation failed to agree on a joint statement for the first time in its history. Futures trading from late Friday signaled small advances for stocks in Japan after the S&P 500 Index eked out a gain, while Hong Kong shares pointed to a mixed start. Treasuries held on to the recent rally. Futures on Japan’s Nikkei 225 rose 0.5 percent late Friday in Singapore. FTSE China A50 Index futures added 1 percent. Hong Kong’s Hang Seng Index futures were little changed. Australia’s S&P/ASX 200 Index slid 0.4 percent. Futures on the S&P 500 fell 0.4 percent.  
• Five Things You Need to Know to Start Your Day.
• Sino-U.S. Divide; Trade-War Whisperer; Aussie Comeback: Eco Day.
• Saudi Stocks Fall Most in Mideast on U.S. Sanctions.
• Bond Bulls Energized as Global Risks Sow Doubts Over Fed's Path.

Wall Street Journal:    

• Investors See Room for Market Gains Amid Tech Rout.  
• Why Central Bankers Missed the Crisis.
• John Bolton Energizes Trump’s Agenda—And His Own.
• U.S.-China Rift: One Phrase ‘Torpedoed’ Pacific Accord.
• Why the Corporate Earnings Boom Has Failed to Lift Investors’ Spirits.
• What a No-Deal Brexit Could Mean for Trade With the EU.
• Bloomberg to Give Johns Hopkins Record $1.8 Billion.
• Countries Push to Extract More Cash from Big Mining Companies.
• Republican Rick Scott Wins Senate Race in Florida.

Fox News:

• Trump discusses what ex-Prez Obama told him, his relationship with the press and his rare do-over 'wish'.
• Migrant caravan faces opposition from angry residents.

CNBC: 

• Why Democrats, fresh from big midterm wins, will likely pursue incremental change in the House.
• Hit hard by trade war, automakers hoping Trump will hold off on new round of tariffs.
• French protesters rail against Macron's fuel taxes with road blocks.

Zero Hedge:          

• Morgan Stanley: We Sense A Shift In Tone From The Fed. 
• Meet The "Heavy Labor" Humanoid Robot Set To Revolutionize Construction.
• US Tourism Bust: Summer Hotel Occupancy Saw Second-Largest Drop Since Recession.
• 'OptionSellers.com' Goes Dark After "Catastrophic Loss Event" In NatGas "Rogue Wave".
• Who Or What Is Really Responsible For The Huge Forest Fires In California?
• Alaska Sees Record Breaking Year For Oil And Gas Leases.
• DARPA, Army Select These Three Companies For Hypersonic Missile Propulsion. 
• San Fran Uber Drivers Selling Respirator Masks As Wildfires Destroy Air Quality.
• Racist Note Left On Kansas Student's Door... Was Written By Himself.
• McMaken: The White House Press Pass Has Nothing To Do With The First Amendment.
• Multiple Root Problems Lie Behind Italy's Economic Woes.

Business Insider:

• Apple(AAPL) CEO Tim Cook on privacy: 'we have to admit when the free market is not working'. 

Telegraph:

• Comment: I’m calling a UK recession if this Brexit bedlam isn’t sorted out soon.

Night Trading

• Asian indices are -.5% to +.5% on average.
• Asia Ex-Japan Investment Grade CDS Index 93.0 +1.5 basis points.
• Asia Pacific Sovereign CDS Index 10.25 +.25 basis point.
• Bloomberg Emerging Markets Currency Index 67.31 -.01%.
• FTSE 100 futures +.04%.
• S&P 500 futures -.35%.
• NASDAQ 100 futures -.39%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (JD)/.69

After the Close:

• (A)/.74
• (BRKS)/.38
• (INTU)/.11
• (JACK)/.85
• (KLIC)/.32
• (LB)/.15
• (NUAN)/.32
• (URBN)/.63

Economic Releases
10:00 am EST

• The NAHB Housing Market Index for November is estimated to fall to 67.0 versus 68.0 in October.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Eurozone Current Account report could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by industrial and technology 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 week.