Monday Watch

Today's Headlines

Bloomberg:

• China’s August Exports Shrink as Tariff War Hurts U.S. Sales.

• Embattled Johnson Proceeds With Brexit Plan Despite Tory Turmoil.    

• Grim Trade Plus Modest Easing Keeps China Stimulus Debate Alive.

• Central Hong Kong Beset With Violence After Lam's Big Concession.  

• EM Rally Hinges on Draghi Being the Dove Traders Want Him to Be.

• Saudi King Installs Prince as Oil Minister as Al-Falih Ousted.

• Iran’s Dark Fleet of Tankers Poses Oil Market’s Biggest Mystery.

• Asian Stocks Set For Muted Start to the Week. Stocks in Asia looked set for a muted start to the week amid further signs of economic softening alongside moves by monetary policy makers to address them. Futures in Japan and Australia were little changed, with contracts in Hong Kong edging higher. On Friday, the People’s Bank of China said it will cut the amount of cash banks must hold as reserves to the lowest level since 2007, injecting liquidity into an economy facing both a domestic slowdown and trade-war headwinds. U.S. stocks and the 10-year Treasury yield were little changed Friday as Federal Reserve Chairman Jerome Powell’s last speech before next week’s policy meeting cemented views for another interest-rate reduction. The S&P 500 Index rose 0.1% on Friday. Futures on Japan’s Nikkei 225 rose 0.1%. Hang Seng futures added 0.2%. Futures on Australia’s S&P/ASX 200 Index slid 0.1%.  

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

• Amgen’s(AMGN) Gene-Targeting Drug Shrank 54% of Lung Tumors in Study.

• More Democrats Question Biden’s Ability to Beat Donald Trump.

Wall Street Journal:

• Negative Bond Yields Bring Positive Returns.

• Workers Flee Big Cities—and Take Their Jobs With Them.

• Apple Bets More Cameras Can Keep iPhone Humming.

• Manufacturers Cut Spending as Trade War Dents Confidence.

• Hong Kong Protesters Flood Streets to Call for U.S. Support.

• China Says Growth Is Fine. Private Data Show a Sharper Slowdown.

• High Debt Levels Are Weighing on Economies.

• WeWork Parent Weighs Further Valuation Cut.

• Bahamas Officials Struggle to Coordinate Recovery from Massive Hit by Dorian.

• As U.S. Cracks Down on Iran’s Oil Sales, It Calls Out an Ally.

Barron's:

• Had bullish commentary on (LULU), (T), (GLU), (MCK) and (DHI).

Fox News:

• Google(GOOG) search results manipulated to favor Hillary in 2016 election: researcher.

• 6 suspects in brutal murder of Maryland man are gang members in US illegally, ICE says.

CNBC:

• As investors scramble for income, these are the best dividend ETFs, according to Morningstar.

• Why Wall Street changed its mind on Activision Blizzard(ATVI).

• JP Morgan has created an index to track the effect of Trump’s tweets on financial markets.

• JP Morgan is close to winning a lead role in history’s biggest IPO: Saudi Aramco.

• China’s exports to the US are falling sharply as Trump escalates the trade war.

Zero Hedge: 

• America's 100 Largest Landowners... And Here Is What They Own.

• Who Is Buying Bonds With Negative Yields? JPMorgan Answers.

• Drone Bubble Implodes, Wipes Out Startups And Hammers VC Firms.

• Universal Basic Income + Automation + Plutocracy = Dystopia.

• Silicon Valley's 'Neoliberal Takeover Of The Human Body' To Supercharge Spending.

• Baltimore On Track For Record Homicides As City Descends Into Chaos.

• Brexit - As Explained To The Bemused And Befuddled.

• "Manifestly Criminal" College-Scam Parents Must Go To Prison: DOJ.

• Former Prosecutor Says BoJo Could Wind Up In Prison If He Refuses Brexit Delay.

• Hong Kong Protesters Urge Trump To "Liberate" City In March On US Consulate.

• Socialism Sucks: Two Economists Drink Their Way Through The Unfree World.

• China's Long Con: A Paper Tiger In A Fragile Economy.

Business Insider:

• Goldman Sachs analyzed 4,481 IPOs over 25 years and concluded that these 5 attributes can make or break a newly public company.

• Most kids today dream of influencer fame, but YouTubers are warning their young fans about anxiety, exploitation, and burnout.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 58.75 unch.

• China Sovereign CDS 39.75 -1.0 basis point.

• Bloomberg Emerging Markets Currency Index 65.76 -.01%.

• FTSE 100 futures n/a.

• S&P 500 futures +.06%.

• NASDAQ 100 futures +.09%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• None of note

After the Close:

• (CASY)/2.03

• (CTRP)/.30

Economic Releases

3:00 pm EST

• Consumer Credit for July is estimated at $16.35B versus $14.596B in June.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The UK Industrial Production report, UBS Business Services/Leisure/Transport Conference, CSFB Steel/Mining Conference, Morgan Stanley Healthcare Conference, Barclays Financial Services Conference, CSFB Basic Materials Conference, Janney Montgomery Healthcare Conference and the (CR) financial analyst meeting 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.