Friday Watch

Evening Headlines

Bloomberg:   

• Trump Says Day One of U.S.-China Trade Talks Went Very Well.

• China to Ask U.S. to End Sanctions on Its Biggest Shipping Company China Hit by EU Tariffs as High as 66%.

• Europe Says It’s Ready for a Trade War If Pressured by the U.S. 

• Stocks Rise as Trade Talks Head Into Second Day. Stocks in Asia gained as high-level U.S.-China trade talks progressed into a second day and optimism grew that a truce can be achieved. Treasury yields edged back after jumping overnight. Shares opened higher in Seoul, Tokyo and Sydney, while S&P 500 futures rose after President Donald Trump said discussions with Chinese counterparts are going “really well” and that they will continue on Friday. Ten-year Treasury yields dipped after rising rose to the highest in a week and the yuan steadied after its climb. The pound retained its advance spurred by talk of a Brexit deal. Futures on the S&P 500 Index gained 0.1% as of 10:10 a.m. in Tokyo. The underlying gauge rose 0.6% Thursday. Japan’s Topix index advanced 0.5%. South Korea’s Kospi index gained 1%. Australia’s S&P/ASX 200 Index advanced 1%.

• Oil Jumps as U.S-China Trade Talks Lift Gloom Over Demand.

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

• Dark Shops, Spotty Phones, Rotting Fish: This Is Life in California's Mass Blackout.

• Nonsense Market Moves Have Investors ‘Exhausted’ by Trade Talks.

Wall Street Journal:

• A Hostile Climate for Children.

• Two Men Who Helped Giuliani on Ukraine Arrested.

• Political Campaigns Know Where You’ve Been. They’re Tracking Your Phone.

• Ukraine Smoke and Mirrors.

• NBA China Game Goes On as Tensions Persist.

• Trump to Meet With China’s Top Trade Negotiator on Friday.

• Those Probiotics May Actually Be Hurting Your ‘Gut Health’.

Fox News:

• These celebs are joining the fight over Ellen DeGeneres' friendship with President Bush.

• DAVID BOSSIE: Americans are witnessing an impeachment conclusion.

MarketWatch.com:  

• For hedge funds, software-as-a-service stocks are the new FAANG.

CNBC:

• SAP CEO Bill McDermott stepping down after over nine years leading software giant.

• More than two dozen now dead from vaping lung illness as outbreak spreads, CDC says.

• Apple deferred to the Chinese government long before the Hong Kong protests.

• Florida is scooping up data on schoolchildren, from security cam footage to social media.

• Stocks making the biggest moves after hours: Roku, Walmart, Slack and more.

Zero Hedge:  

• US China Business Council: A Deal Is Coming (But It Will Be Small).

• Watch: CNN Reporter Abruptly Muzzled While Asking NBA Stars About China.

• Climate Alarmists Superglue Themelves To Street, Get Arrested After Bringing Times Square To Standstill.

• Humor? NBA Now Requiring All Players To Stand For Chinese National Anthem.

• Pound Rallies On Report Johnson And Varadkar Nearing Brexit Deal.

• New Vaccines Are In Our Future That Will "Literally Change Your DNA".

• US Futures Spike On Trump Trade Talks Comments.

• America 2019: Even The Wealthy Are Poorer In Everything That Matters.

• After Overnight Chaos, Trump Trade Tweet Sparks Stock Buying-Panic.

Business Insider:

• Apple CEO Tim Cook addressed employees to explain why he stands by the company's decision to remove an app that Hong Kong protesters were using to track police.

• Austin's homeless crisis is so dire, a nonprofit built an $18 million tiny home village to get the chronically homeless off the streets. Take a look inside Community First Village.

Night Trading 

• Asian equity indices are +.25% to +.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 78.0 -.75 basis point.

• China Sovereign CDS 46.75 -1.25 basis points.

• Bloomberg Emerging Markets Currency Index  65.46 -.01%.

• FTSE 100 futures n/a.

• S&P 500 futures +.31%.

• NASDAQ 100 futures +.36%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (FAST)/.36

• (INFY)/9.38

After the Close:

• None of note

Economic Releases
8:30 am EST

• The Import Price Index MoM for Sept. is estimated unch. versus a -.5% decline in Aug. 

• The Export Price Index MoM for Sept. is estimated to fall -.1% versus a -.6% decline in Aug.

10:00 am EST

• Preliminary Univ. of Mich. Consumer Sentiment for Oct. is estimated to fall to 92.0 versus 93.2 in Sept.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Canada Unemployment Rate, Bloomberg Oct. US Economic Survey and the (WEN) investor day could also impact trading today.

BOTTOM LINE: Asian indices are higher, boosted by technology and financial 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.