Tuesday Watch

Today's Headlines

Bloomberg:   

• U.S.-China Negotiations Are ‘Picking Up,’ USDA's Censky Says .

• Trump to Ramp Up Pressure on Maduro to Leave Venezuela.  

• Global Economy Stuck With Downside Risks in the Near Term.

• ECB Eyes Data as Slowdown Proves ‘Significant,’ Villeroy Says.

• China Unveils Plan to Tie Hong Kong, Macau Closer to Mainland.

• RBA On Alert as Falling Property, Weak Incomes Threaten Spending.

• Saudis Defend App That Lets Men to Give Women Permission to Travel. 

• Asian Stocks Mixed; Treasury Yields Edge Higher. Asian stocks traded mixed Tuesday with little direction after a muted session in Europe and a holiday in the U.S. The dollar steadied while Treasury yields edged higher. Shares in Japan were little changed and fell in Korea, while Australian equities posted modest gains. Global trade remained foremost in investors’ minds as the European Union vowed prompt retaliation if the U.S. imposes tariffs on imported vehicles, with trans-Atlantic trade tensions showing no signs of easing. Earlier, European shares edged higher. Oil advanced to trade close to its highest in almost three months. Japan’s Topix Index fell 0.1 percent at 9:15 a.m. in Tokyo. S&P/ASX 200 rose 0.2 percent. Kospi Index fell 0.8 percent. The Stoxx Europe 600 Index gained 0.2 percent to the highest in almost 19 weeks. S&P 500 futures were little changed.  

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

• China Rate Debate, Bundesbank Soothes, Singapore Splash: Eco Day.

• Oil Trades Near Three-Month High on Supply Curbs and Trade Talks.

• First Big Depression Advance Since Prozac Nears FDA Approval.

• Trump Considering Powell, Craft, Grenell, James for UN Job, Sources Say.

Wall Street Journal:   

• As China Talks Resume, Trump Seeks a Win on Trade.

• Brexit Rift Deepens as U.K. Labour Lawmakers Quit Party.

• Bad News Is Good News for Stocks Again.

• Negative Yields Mount Along With Europe’s Problems.

• Discounts on SUVs Are Getting Bigger as Dealer Inventories Rise.

• U.K. Lawmakers Rebuke Facebook in Call for Social-Media Regulation.

• FAA Probes Southwest Airlines Over Baggage Weight Discrepancies.

• California Prepares to Sue Trump Over Wall Emergency. 

MarketWatch.com:

• The junk bond market has good things to say about the stock market.

Fox News:

• Trump rips Sessions, accuses McCabe, Rosenstein of 'treasonous' plot. 

• 5 inconvenient truths about socialist pop culture icon Che Guevera.

CNBC:

• Seven UK lawmakers resign from Labour party citing ‘Brexit,’ ‘bullying’ and ‘anti-Semitism’.

• Why California’s new solar mandate could cost new homeowners up to an extra $10,000.

• EU says it will react swiftly if US hits it with car tariffs.

• Top Apple(AAPL) analyst Kuo outlines the new products he thinks Apple will launch this year 

• Asia has ‘mitigating factors’ to counter a global growth slowdown, says bank CEO.

Zero Hedge:    

• Motive Revealed In Smollett Case: Actor Concocted Hate Crime After Racist Letter Failed To Impress.

• Giant List Of MSM-Fueled Hate-Crime Hoaxes Meant To Frame Trump Supporters.

• Rabobank: China's Borrowing Was Insane: In January It Borrowed 5% Of GDP In One Month.

• Justin Trudeau's Government In Turmoil After Top Aide Resigns Over Corruption Allegations.

• India Weighs Military Strikes In Kashmir After Deadliest Terror Attack In 30 Years.

• Rediscovering America: A Presidents Day Quiz On U.S. Presidents.

• Trump Courts Latino Vote In Miami Speech: Venezuela's Move To Democracy Is "Irreversible".

• Kamala Harris' Father Slams Her "Pursuit Of Identity Politics" After Pot-Smoking Jamaicans Joke.

• China Car Sales Plunge Most In 7 Years Amid Global Auto Industry Meltdown.

• Trump Slams McCabe & Rosenstein Over "Treasonous", "Very Illegal" Plan To Secretly Record President.

• CNN Reporter Sparks Ethics Controversy After Kamala Harris "Fashion Shoot".

• Pelosi Quietly Deletes Tweet Slamming "Racist, Homophobic" Attack On Jussie Smollett.

• UK Labour Party Suffers Biggest Split In 38 Years Over Corbyn Anti-Semitisim, Brexit Bungle.

• Trade Hope Rally Fizzles In Europe After China Soars To Four Month High.

• German Regulator Bans Short-Selling In Wirecard Shares, Citing "Contagion" Risks.

• Bill Gates: Best Option For Soaking The Rich Would Be Hiking Capital Gains Tax.

• Do You Believe In The Deep State Now?

• Chinese Data Leak Reveals Millions Of People Actively Tracked By Surveillance Network.

Business Insider:

• Mark Zuckerberg roasted by group of lawmakers, who accuse Facebook's CEO of spectacular leadership failure. 

• The future of artificial intelligence in retail.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 74.0 -2.0 basis points.

• China Sovereign CDS 53.0 -1.0 basis point.

• Bloomberg Emerging Markets Currency Index 67.95 -.04%.

• FTSE 100 futures +.13%.

• S&P 500 futures -.04%.

• NASDAQ 100 futures +.15%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (AAP)/1.13

• (AAWW)/2.92

• (EXPD)/.85

• (FDP)/.12

• (GPC)/1.32

• (MDT)/1.24

• (SAGE)/-2.92

• (TEX)/.47

• (RIG)/-.24

• (WMT)/1.33

After the Close:

• (CRMT)/.99

• (CXO)/1.12

• (HLF)/.60

• (LZB)/.55

• (TXRH)/.41

Economic Releases

10:00 am EST

• The NAHB Housing Market Index for Feb. is estimated to rise to 59.0 versus 58.0 in Jan.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China mid-level trades talks, German ZEW Index, Japan trade data report and the (JEC) 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 100% net long heading into the week.