Monday Watch

Today's Headlines

Bloomberg:  

• Trump Extends China Tariff Deadline After ‘Substantial’ Progress.

• Debt Is Roaring Back in China.

• May Delays Brexit Vote to Buy Time as Ministers Threaten Revolt.  

• After Venezuela Aid Is Torched, Guaido Plots Bolder Measures.

• Wild Week Ahead: Trade, Brexit, Trump, Kim, Cohen and Powell.    

• Stocks Gain, Yuan Advances on Trade Optimism: Markets Wrap. Stocks built on recent gains amid positive signals emanating from trade negotiations. The yuan and the Australian dollar advanced, while Treasuries fell. President Donald Trump said he will delay the March 1 deadline for higher U.S. tariffs on $200 billion of Chinese goods. That gave a modest lift to riskier assets, with Japan and South Korean shares opening higher and U.S. equity futures advancing. The yield on 10-year Treasuries nudged up. Japan’s Topix index gained 0.5 percent as of 9:02 a.m. in Tokyo. S&P 500 Index futures rose 0.4 percent. Australia’s S&P/ASX 200 Index added 0.3 percent. South Korea’s Kospi index rose 0.4 percent.   

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

• Trump vs Trade Czar, Xi's Lending Hurdle, Brexit Angst: Eco Day.

• Dubai Stocks Cross Resistance Level Held For a Year: Inside EM.

• ‘Play-the-Pause’ Trading Strategies Gain Traction on Wall Street.  

• With Fed Eyeing Inflation Overshoot, JPMorgan Likes Gold, TIPS.

Wall Street Journal:

• Pope Vows to Combat Sex Abuse but Offers Few Policy Specifics.

• Stocks Tied to Economic Growth Push Dow Industrials Toward New High.

• Frackers Face Harsh Reality as Wall Street Backs Away.

• Maduro’s Opposition Urges Military Force in Venezuela.

• Fed Embarks on a Rethink of Its Inflation Target.

MarketWatch.com:

• Both Republicans and Democrats are too complacent about the budget deficit.

• It’s the best start for the stock market in 32 years by one measure — so why is Wall Street so uneasy?

Fox News:

• DNC Chair Perez says GOP derides socialism to distract from real issues.

• Pompeo rips lawsuit from family of ISIS wife, says she’s 'non-citizen terrorist'.

CNBC:

• Trump extends deadline for Chinese tariffs set to begin on March 1, citing progress on trade.

• Huawei’s new foldable phone will top both Apple and Samsung in price, costing around $2600.

• Trump is right that the US risks losing the 5G race, Huawei chairman say.

• China rushes to seal trade deal ahead of Trump's deadline.

• 2016 all over again? Why historically low global interest rates could make a comeback this year.

Zero Hedge:       

• Trump Delays March 1 China Tariff Deadline.

• Berkshire Letter Highlights: Shocking $25BN Loss; Buffet Bashes "Deficit Doomsayers", Emerges As Closet "Austrian".

• New York Bus, Subway Ridership Tumbles, Leaving MTA Scrambling.

• Venezuela Aid Trucks Set Ablaze As Maduro Tells Trump: "Yankee, Go Home".

• The Benefits Of Brexit.

• Video: Iran Hacks Into CENTCOM, Crashes MQ-9 Reaper Drone.

• Microsoft Workers Revolt Over $480 Million Defense Contract.

• Americans Call Their Government America's Top Problem.

• Watch China Cut BBC Live Feed When Correspondent Mentions Muslim Internment Camps.

• Saturday Satire - Smollett Offered CNN Job After Making Up Story Out Of Thin Air.

• AOC's Latest Nanny-State Proclamation: Americans Must "Eat Fewer Hamburgers" To Stop Climate Change.

Business Insider:

• British MPs will only get a meaningful vote 2 weeks before the UK is due to exit the EU, Theresa May says. 

• After a big privacy backlash, Google’s Nest explains which of its products have microphones and why.

Night Trading

• Asian indices are +.25% to +.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 70.50 -1.75 basis points.

• China Sovereign CDS 49.75 -1.75 basis points.

• Bloomberg Emerging Markets Currency Index 68.29 +.12%.

• FTSE 100 futures +.08%.

• S&P 500 futures +.32%.

• NASDAQ 100 futures +.40%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (CRI)/2.56

• (MDR)/.18

• (TEN)/1.43

After the Close:

• (ETSY)/.28

• (CRZO)/.55

• (HTZ)/.90

• (MOS)/.57

• (RCIOI)/.20

• (SHAK)/.03

• (THC)/.29

• (TEX)/.47

Economic Releases
8:30 am EST

• The Chicago Fed National Activity Index for Jan.

10:00 am EST

• Wholesale Inventories MoM for Dec. is estimated to rise +.4% versus a +.3% gain in Nov.

• Wholesale Trade Sales MoM for Dec.

10:30 am EST

• The Dallas Fed Manufacturing Activity Index for Feb. is estimated to rise to 4.8 versus 1.0 in Jan.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The 2/5-Year T-Note auctions, Mexico GDP report, Mobile World Congress, Morgan Stanley Tech/Media/Telecom Conference, JMP Securities Tech Conference, (ETH) investor meeting and the BofA Merrill Animal Health Summit could also impact trading today.

BOTTOM LINE: Asian indices are higher, boosted by technology and industrial shares in the region. I expect US stocks to open modestly higher and to maintain gains into the afternoon.  The Portfolio is 100% net long heading into the week.