Tuesday Watch

Evening Headlines

Bloomberg:     

• Trump and Xi Are Close to a Deal, But Trade War Isn't Over.  

• China Lowers Growth Target and Cuts Taxes as Economy Slows.    

• China Defense Spending Set to Rise 7.5% as Xi Builds Up Military. 

• The World's Dirtiest Air Is in India.

• It's Hedge Funds Against Long-Term Players in Japan Stock Market.

• Asian Stocks Track U.S. Slide; Dollar Edges Higher. Asian stocks tracked U.S. shares lower as investors look for details of a possible trade deal between the U.S. and China. The dollar edged higher and Treasury yields held declines. Equities fell in Japan, Korea and Australia after the S&P 500 Index declined the most in a month, though the benchmark did pare the worst of its losses late in the session. Chinese stocks will be closely watched after the country lowered its goal for economic growth and announced a major tax cut. The yuan was little changed. Japan’s Topix index fell 0.6 percent as of 9:13 a.m. in Tokyo. S&P/ASX 200 Index fell 0.5 percent. Hong Kong’s Hang Seng Index futures fell 0.9 percent. S&P 500 futures were little changed.   

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

• China VAT Cut, Debt Binge Looks Like MMT, U.S. Growth: Eco Day.

• Democrats Plan Anti-Semitism Measure After Omar Remarks.  

• Ocasio-Cortez Aide Floats Amazon’s Return to NYC If Done Via Right ‘Process’.

Wall St. Journal:

• Purdue Pharma Prepares Possible Bankruptcy Filing.

• House Panel Requests Documents From Scores of Trump Associates. 

• High-Speed Rail in the U.S. Remains Elusive: Illinois Shows Why.

MarketWatch.com:

• Don’t write off stocks — the market is poised to hit new peaks, strategist says.

Fox News:

• House Dems to introduce resolution condemning anti-Semitic comments amid Omar scandal.

• Kavanaugh slams church treatment as court nixes religious liberty case.

CNBC:

• Stocks making the biggest moves after hours: Salesforce, GameStop and more.

• Salesforce shares slide on disappointing earnings and revenue forecast.

Zero Hedge:

• Ocasio-Cortez Mocks Critics Of Her Massive Carbon Footprint.

• It Begins: China's Largest Property Developer Will Sell All Homes At A 10% Discount.

• Green New Deal: A Dystopian Future Awaits?

• Beijing Goes 'Full Orwell' As Annual National Party Congress Begins.

• Spooked? Christopher Steele Cancels Appearance After Cohen Testimony Destroys Dossier Allegation.

• "Every Indicator Is Blinking Red" - Aussie PMI Plunges To Record Low Ahead Of RBA Decision.

• 'Witch Hunt' Intensifies: Full List Of 81 People Hit With House Judiciary Document Requests.

• In Major Blow To Trudeau, Senior Minister Quits Over Corruption Allegations. 

• Stocks Skid, Bonds Bid As "Sell The News" Strikes At Critical Resistance.

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 66.75 -1.25 basis points. 

• China Sovereign CDS 47.25 -1.75 basis points.

• Bloomberg Emerging Markets Currency Index 67.94 -.06%.

• FTSE 100 futures -.13%.

• S&P 500 futures -.09%.

• NASDAQ 100 futures -.11%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (CIEN)/.30

• (JWA.A)/.78

• (KSS)/2.18

• (SINA)/.89

• (TGT)/1.52

• (WB)/.75

After the Close:

• (AVAV)/.16

• (COO)/2.50

• (NX)/-.12

• (ROST)/1.13

• (URBN)/.79

• (ZAGG)/.50

Economic Releases
10:00 am EST

• The ISM Non-Manufacturing Index for Feb. is estimated to rise to 57.3 versus 56.7 in Jan.

• New Home Sales for Dec. is estimated to fall to 600K versus 657K in Nov.

2:00 pm EST

• The Monthly Budget Statement for Jan. is estimated to rise to $12.0B versus -$13.5B in Dec.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Rosengren speaking, China Services PMI report, Eurozone Services/Retail Sales reports, US weekly retail sales reports, JPMorgan Aviation/Transport/Industrials Conference, Morgan Stanley Med Tech Conference, CSFB Healthcare Conference, Evercore ISI Airline conference and the (H) investor day could also impact trading today.

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