Monday Watch

Today's Headlines

Bloomberg:

• Trump’s Vow to Up Duties Casts Pall Over Crucial China Talks.

• U.S.-China Trade Deal Talks Enter Endgame: Global Economy Week.

• Kim Jong Un’s Cryptic Moves Puzzle North Korea Watchers. 

• Yuan Sinks With U.S. Stock Futures on Tariff Risk. The yuan plunged the most since August, U.S. stock futures tumbled along with crude oil prices after U.S. President Donald Trump threatened to increase tariffs on Chinese imports, casting a cloud over talks this week that were expected to finalize a trade deal. The shock statement, following weeks of reports of continued progress in negotiations between the world’s two largest economies, is set to roil Asian markets Monday. The yuan slid 0.8 percent in offshore trade, and contracts on the S&P 500 Index sank as much as 1.8 percent. The yen climbed. West Texas Intermediate crude slumped about 2 percent. The renewed tension eliminated all the cheer from a strong U.S. jobs report, which had sent American stocks up Friday. Futures on 10-year Treasuries advanced. Futures on the S&P 500 Index slid 1.4 percent as of 7:06 a.m. in Hong Kong. Contracts on the Nikkei 225 Stock Average fell 2 percent in Chicago. Futures on Australia’s S&P/ASX 200 Index were up 0.5 percent earlier.  

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

• A $300 Billion Blowup Has Traders Bracing for War in Washington.  

• Occidental to Sell Anadarko Africa Assets for $8.8 Billion.

• Trump Slams Kentucky Derby, Says Best Horse Was Denied Victory.

• EU to Start Formal Probe on Spotify's Apple Complaint, FT Says.

Wall Street Journal: 

• Trump Issues Tariff Threat as U.S., China Talks Set to Resume.

• The Burdens of BernieCare.

• Weeding Out Dubious Marijuana Science.

• Boeing(BA) Knew About Problem for a Year Before Telling FAA, Airlines.

• Moore, Cain Withdrawals Re-Up Search for Supporters on Fed Board.

• Israel, Gaza Trade Blows in Deadly Exchanges.

• Standing Against Psychiatry’s Crazes.

• Administration Backs Plan for More H-2B Visas, Irking Critics.

MarketWatch.com:

• These colleges now offer courses in cannabis.

Barron's:

• Had bullish commentary on (BURL), (LOVE), (FTCH), (NKE), (OXY), (ZUO) and (HD).

Fox News: 

• Biden gives Trump a nickname, lambasts president for Jim Crow 'sneaking back in'.

• More than 600 rockets fired at Israel from Gaza in less than 24 hours.

CNBC: 

• Amazon(AMZN) can already ship to 72% of US population within a day, this map shows.

• Micro futures for the major indices are about to launch. Here’s everything you need to know. 

• Americans are flocking to these 9 southern cities where business is booming and salaries are rising.

Zero Hedge:    

• Trade Deal Dead: Trump Says 10% China Tariff Rising To 25% On Friday, Another $325BN In Goods To Be Taxed.

• Dow Futures Plunge 500 Points Amid Trump Trade Threat Turmoil.

• As Trump Approval Rating On Economy Skyrockets, Biden Slams President As "Aberration".

• Russian Authorities Confirm 41 Dead After Aeroflot Jet Explodes On Landing In Moscow.

• Senate Dems Delete Embarrassing Poll Showing 70% Prefer Kavanaugh Over RBG.

• Analysts Confirm North Korea Launched First Ballistic Missile Since 2017.

• Tariff Man Set To Impose Duties on Yarn From China, India.

• Orwellian Cloud Remains Over Russia-Gate.

• California High School To Erase George Washington Mural: "Traumatizes Students".

• California Ready To Ban Trump From 2020 Election.

• Life-Threatening Risks Prompt FDA To Order "Black Box" Warning Labels For Ambien, Other Sleep Aids.

• Robots Taking Over "Miserable" Job Of Unloading Trucks As E-Commerce Margins Slide.

Business Insider

• Long shot Country House wins Kentucky Derby after Maximum Security finishes first but is disqualified.

Night Trading

• Asian indices are -1.5% to -.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 66.5 +1.5 basis points.

• China Sovereign CDS 40.75 unch.

• Bloomberg Emerging Markets Currency Index 66.39 -.02%.

• FTSE 100 futures n/a.

• S&P 500 futures -1.67%.

• NASDAQ 100 futures -1.96%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (AMG)/3.26

• (PETS)/.46

• (SYY)/.70

• (TSN)/1.16

After the Close:

• (AIG)/1.06

• (ANDE)/.15

• (BKD)/-.37

• (CENT)/.71

• (RE)/5.90

• (FN)/.89

• (HTZ)/1.35

• (KLAC)/1.68

• (MOS)/.25

• (OXY)/.71

• (PXD)/1.62

• (RCII)/.35

Economic Releases

• None of note

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The (TRUP) CEO Q&A session 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 lower and to maintain losses into the afternoon.  The Portfolio is 75% net long heading into the week.