Tuesday Watch

Evening Headlines

Bloomberg:        

• Tory Brexit Purists Get Ready to Vote for a Deal as EU Waits.  

• South Korea’s Prices Fall for First Time as Export Woes Persist.    

• Japanese Manufacturer Sentiment Drops to Lowest Level Since 2013.

• Australia Housing Recovery Gathers Pace as Sydney Prices Boom.

• Asia Stocks Set for Modest Gains; Dollar Rises. Asian stocks looked set for modest gains after U.S. stocks advanced as investors weighed the latest turns in the trade war between the world’s two largest economies. The dollar rose and Treasuries edged higher. Futures pointed higher in Japan and were little changed in Australia. The S&P 500 on Monday capped a third month of gains out of the last four, rebounding from the August slide. Technologya fueled Monday’s rise after the Trump administration partially refuted a report it would target Chinese capital, reversing losses sparked by the news Friday. Ten-year Treasuries erased an early drop to trade higher, after data showed weakening business activity. Nikkei 225 futures rose 0.5%. S&P/ASX 200 futures rose 0.1%.  

• RBA Hawkish Risk, Trump China Denial, Europe Jobs Hope: Eco Day.  

• Crude Oil Holds Its Losses as Global Demand Concerns Dominate. 

• Stock Options Are Now Bracing for Brexit or Trump-Like Shock.

• Impeachment Doesn’t Shake Trump Voters, But Sows Doubt on Biden.

• Hedge Fund Started in College Dorm Room Accused of Fraud by SEC.  

• California Sues U.S. for Tying Grants to Immigration Enforcement.

Wall Street Journal:

• Communist China Turns 70.

• Pelosi’s Permanent Impeachment.

• How PetSmart Swallowed Chewy—and Proved the Doubters Wrong.

• U.S. Stocks Rise to Cap Volatile Quarter.

• U.S. Alleges California Tour Guide Spied for Chinese Intelligence.

• Beijing Takes Stakes in Private Firms to Keep Them Afloat.

• California Governor Signs Bill Allowing College Athletes to Earn Endorsement Money.

Fox News:

• Barr asked Trump to speak to other countries in probe, official says amid NYT reporting pushback.

• Pelosi's whistleblower comments prompt GOP concerns of 'political setup'.

CNBC:

• Here’s why the Forever 21 bankruptcy could be really bad news for US mall owners.

• Investors rotated into these top sectors in September.

Zero Hedge:

• Aussie PM Confirms No Coercion, "Was Ready To Assist" In Mueller Origins Probe.

• House Democrats Subpoena Giuliani Over 'Scheme' To Investigate Biden.

• Schiff Targets Trump-Putin Transcripts; Kremlin Says Nyet So Fast.

• Here Are The Billions Of Loans Exposed To A Potential WeWork Bankruptcy.

• CIA Whistleblower's Attorney: '60 Minutes' Federal Protection Story Is Fake News.

• Ron Paul Asks: "Impeachment... Or CIA Coup?"

• Girl Admits To Hate Crime Hoax At School Where Karen Pence Teaches.

• Americans Reject Universal Basic Income While Canada & UK Embrace It.

• Credit Suisse 'Spy' Found Dead As 'Espionage Scandal' Stuns Swiss Banking Establishment.

• Safe-Havens Beat Stocks In Q3 As Global Policy Uncertainty Hits Record High.

Telegraph:  

• China's unhappy 70th birthday: the four charts showing why its economy is in serious trouble.

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 76.5 +.25 basis point.

• China Sovereign CDS 47.25 -.5 basis point.

• Bloomberg Emerging Markets Currency Index  65.27 -.07%.

• FTSE 100 futures -.05%.

• S&P 500 futures +.18%.

• NASDAQ 100 futures +.18%.

Morning Preview Links 

Earnings of Note 
Company/Estimate

Before the Open:

• (MKC)/1.29

After the Close:

• (SFIX)/.04

• (UNFI)/.55

Economic Releases
10:00 am EST

• ISM Manufacturing for Sept. is estimated to rise to 50.0 versus 49.1 in Aug.

• ISM Prices Paid for Sept. is estimated to rise to 50.5 versus 46.0 in Aug.

• Construction Spending for Aug. is estimated to rise +.5% versus a +.1% gain in July.

Afternoon:

• Wards Total Vehicle Sales for Sept. is estimated to rise to 17.0M versus 16.97M in Aug.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Vice Chair Clarida speaking, Fed's Bowman speaking, Eurozone CPI report and the weekly US retail sales reports could also impact trading today.

BOTTOM LINE: Asian indices are slightly higher, boosted by technology and consumer shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.