Monday Watch

Today's Headlines

Bloomberg:   

• Saudis Set to Restore Almost Half of Output Lost to Drone Strike.

• Draghi’s Stimulus Shot Is No Cure for Europe’s Japanification. 

• Johnson Confident of EU Brexit Deal, Works ‘Flat Out’ on Leaving.  

• China's Bond Traders Stuck With a Market That Just Doesn't Move.

• Emerging-Market Rally May Hinge on Stimulus. Just Not Too Much.

• Oil Soars, Yen Gains After Saudi Oil Field Attacks. Oil surged and the yen climbed after a strike on the heart of Saudi Arabia’s oil production increased geopolitical risk concern. U.S. equity futures declined and Treasury futures rose. Brent crude soared 13% and West Texas Intermediate added 11%. News of the devastating attack on the world’s largest crude exporter also sent currencies of commodity-linked nations higher, including the Norwegian krone and the Canadian dollar. U.S. President Donald Trump said he has authorized the release of supplies from the country’s emergency fuel storage, known as the Strategic Petroleum Reserve, if that is needed. Futures on the S&P 500 Index fell 0.3% as of 8:50 a.m. in Sydney. The underlying gauge declined 0.1% on Friday. Hang Seng futures ended Friday up 0.2%.  

• Oil Jumps the Most Ever After Attack Cuts Saudi Supplies.

• U.S. Oil Companies Set to Benefit From Saudi Supply Disruption.

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

• New York Declares ‘Emergency’ Ban on Flavored E-Cigarettes.

• Fed Doves Fear Risks Abroad While Hawks See a Solid Home Front.

Wall Street Journal:

• Gucci’s Social-Media Status Fell, and Its North American Sales Dropped.

• Iran Rejects U.S. Accusations Over Saudi Oil Attacks.

• Junk Debt Sends Early Warning Signals.

• Resilient U.S. Growth Propels Stocks as Trade Fears Ease.

• Lawmakers Make Long-Shot Bid to Check Presidential Tariff Powers.

• Political Crisis Deepens in Hong Kong as Protesters Retake Streets.

• Luxury’s Trouble Getting Down With American Kids.

• U.S. Targets North Korean Hacking as Rising National-Security Threat.

Fox News:

• Comey, McCabe will face criminal charges amid FISA report: McCarthy.

• Trump blasts 'lies' against Kavanaugh as new accusation sparks Dem impeachment calls.

CNBC:

• Saudi stock market dives, crude futures to jump after drone attack on oil plants.

• ‘It’s not a free market’: These manufacturers say tariffs help level the playing field with China.

• UAW calls strike against General Motors for first time since financial crisis.

• Trump says Justice Kavanaugh should ‘start suing people’ after new report of sexual misconduct.

Zero Hedge:   

• Iran War Imminent? Trump Says US "Locked And Loaded" To Respond To Saudi Attack.

• Former CIA Spook: "Clear To Me That Spying On Trump Was Ordered By Obama".

• Satellite Images Reveal It Would Take "Months" To Fix Saudi Oil Facility.

• Petrol Bombs, Rubber Bullets And A Stormtrooper Waving An American Flag; Another Sunday In Hong Kong.

• China Slaps Britain: You Can't Afford Hostility

• The IRS Is Blindly Coming After Cryptocurrency Traders - Here's Why

• U.S. Poverty Levels Fall To Pre-Recession Low

• Man Brings "Emotional Support Clown" To Meeting Where He Was Laid Off

• We're Ready For "Full-Fledged" War: Iran Responds To US Accusation It Launched Saudi Oil Attack.

Business Insider:

• These 'kamikaze' drones are believed to be the culprits of the attacks on 2 Saudi oil fields. Here's what we know about them.

• A GOP pollster said $2 billion will be spent in the 2020 election on convincing 6% of voters which party to vote for.

• The US auto workers union just decided to walk out on GM — here's why they're striking.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 55.5 unch.

• China Sovereign CDS 37.75 unch.

• Bloomberg Emerging Markets Currency Index 66.13 +.03%.

• FTSE 100 futures n/a.

• S&P 500 futures -.32%.

• NASDAQ 100 futures -.59%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• None of note

After the Close:

• None of note

Economic Releases

8:30 am EST

• Empire Manufacturing for September is estimated to fall to 4.0 versus 4.8 in August.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China Industrial Production/Retail Sales reports, RBA Minutes and (VAR) investor meeting could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and consumer shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the week.