Tuesday Watch

Evening Headlines

Bloomberg:    

• Trump Asks Mnuchin Why U.S. Canceled Chinese Farm Visits 

• Johnson Urges EU Leaders to See He Has Compromised on Brexit  

• Europeans Side With U.S. Over Iran on Saudi Strikes, New Deal.

• Asia Stocks Set for Mixed Start; Treasuries Steady. Asian stocks are set for a muted open on Tuesday after U.S. shares ended flat on a mixed day for global economic data. Treasuries were steady. Futures edged lower in Japan and Australia, and rose in Hong Kong. U.S. contracts climbed in early Asia trading after the benchmark was little changed on below average volume Monday. Economic data was largely in line in the U.S. though far short of estimates in Germany and France, sending stocks in Europe down. American money-market interest rates held steady. Futures on the Nikkei 225 fell 0.5%. Australia’s S&P/ASX 200 Index futures were down 0.1%. Hong Kong’s Hang Seng Index futures rose 0.5%. S&P 500 futures rose 0.4% as of 8:04 a.m. in Tokyo.

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

• Oil Declines as Market Awaits Further Cues on Saudi Production.

• Investors Should Be Worried About a Warren Presidency, Analyst Warns.

• Fed Dove Bullard Says May Need More Rate Cuts to Offset Risks.

Wall Street Journal:

• What Drove SoftBank’s Vision Fund Up Is Dragging It Down.

• Snap Detailed Facebook’s Aggressive Tactics in ‘Project Voldemort’ Dossier.

• GM Furloughs More Workers as UAW Strike Continues.

• ‘The Bells Start Going Off.’ How Doctors Uncovered the Vaping Crisis.

• Lower-Income Americans Increasingly Job Hopping.

Fox News:

• Senate leaders trade barbs on floor over Trump-Ukraine phone call as Dems threaten subpoenas.

• Kidnapped police commander found beheaded in vacation hub.

MarketWatch.com:   

• Why a sideways stock market could indicate the highs are yet to come.

• As the market appears stuck in a rut — here are 5 stocks poised to rise.

CNBC:

• Trump surprised when Mnuchin says he asked China trade delegation to cancel farm tour.

• Tesla and Musk hid facts about SolarCity deal and SpaceX involvement, shareholders claim.

• Stocks may be poised for dramatic surge, if they can break out of their current range, analysts say.

• Stocks making the biggest moves after hours: VEREIT, Transocean and Univar Solutions.

• China to place government officials inside 100 private companies, including Alibaba.

Zero Hedge:

• "You've Stolen My Childhood" - 16-Year-Old Girl Throws Tearful Climate Tantrum At UN.

• "A Glimpse Of Government's Ability To Totally Control Our Lives".

• Juul Under Criminal Investigation By Feds Amid FTC, FDA Probes.

• CNN Deems It A "Conspiracy Theory" To Question Biden Ties To Ukraine.

• Stocks Slip, Silver Rips, Yield Curve Dips After Global Macro Data Dumps.

Night Trading 

• Asian equity indices are -.25% to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 73.25 +2.75 basis points.

• China Sovereign CDS 45.5 +1.0 basis point.

• Bloomberg Emerging Markets Currency Index  65.53 +.01%.

• FTSE 100 futures n/a.

• S&P 500 futures +.38%.

• NASDAQ 100 futures +.51%.

Morning Preview Links 

Earnings of Note 
Company/Estimate

Before the Open:

• (AZO)/21.79

• (BB)/-.01

• (KMX)/1.33

• (JBL)/.87

After the Close:

• (CTAS)/2.15

• (CMTL)/.17

• (NKE)/.71

Economic Releases
9:00 am EST

• The FHFA House Price Index MoM for July is estimated to rise +.3% versus a +.2% gain in June.

• The CoreLogic CS 20-City MoM for July is estimated to rise +.1% versus a +.04% gain in June.

10:00 am EST

• The Richmond Fed Manufacturing Index for Sept. is estimated at 1.0 versus 1.0 in August.

• The Conference Board Consumer Confidence Index for Sept. is estimated to fall to 133.0 versus 135.1 in August.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The BoJ minutes, $40B 2Y T-Note auction, weekly US retail sales reports, BofA Merrill Financials/Banking/Insurance conference, Goldman ESports/Video Games conference,   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 day.