Tuesday Watch

Evening Headlines

Bloomberg:

• Johnson Bid for Election Defeated in Parliament: Brexit Update.

• Cracks in China Bonds Have Traders Watching $35 Billion Maturity.

• China Tech, at Center of Trade War, Is Best Place to Be in Bonds.

• Stocks Gain in Asia After U.S. Record; Bonds Drop. Stocks in Asia advanced on Tuesday after U.S. equities climbed to a record, propelled by optimism for a trade deal, encouraging earnings and expectations for another Federal Reserve interest-rate cut. Ten-year Japanese government-bond yields hit the highest in more than two months, following gains in Treasury yields overnight. Equity benchmarks rose in Japan and South Korea, with more modest gains in Australia. U.S. futures were flat after the S&P 500 Index took out its July record high, with President Donald Trump saying the U.S. is ahead of schedule to sign part of a China trade deal. Japan’s Topix index rose 0.7% as of 9:05 a.m. in Tokyo. Australia’s S&P/ASX 200 Index rose 0.2%. South Korea’s Kospi index added 0.5%. Hong Kong’s Hang Seng Index contracts rose 0.6% earlier. S&P 500 futures were flat. The S&P 500 Index advanced 0.6%.

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

• Stretched Americans, Trade War 2020, Singapore Strains: Eco Day.

• Rubio Plans Bill to Block Federal Pensions Investing in China.

• Paul Tudor Jones Warns of Stocks Tanking 25% on Warren Victory.

Wall Street Journal:

• Islamic State Spokesman Killed in U.S. Airstrike.

• Pelosi Concedes on Inquiry Vote.

• Tens of Thousands Flee Los Angeles Blaze.

• Johnson Loses Bid for Early Election but Takes New Tack to Get One.

• S&P 500 Rises to a Record on Tech Rally.

Fox News:

• GOP hits back at House Dems for announcing impeachment inquiry vote: 'like un-ringing a bell'.

CNBC:

• Mirati drug shrinks tumors in some cancer patients in early-stage trial.

• After new record, these are the stocks Wall Street thinks will lead the next market leg higher.

• US considers extending tariff exclusions on Chinese imports.

• House Democrats set vote on impeachment procedure amid Republican criticism.

• Juul plans to cut about 500 jobs by the end of the year, report says.

• Beyond Meat turns its first profit, topping estimates, but shares sink.

• Jim Cramer says performances of these luxury brand names show the ‘consumer’s in great shape’.

• Alphabet(GOOG) tumbles on earnings, but traders see a buy.

• Stocks making the biggest moves after hours: Beyond Meat, GrubHub, Alphabet and more.

Zero Hedge:   

• 'We Will Not Legitimize The Sham Impeachment': House Minority Leader Responds To Pelosi Announcement.

• NYC Secretly Shipping Homeless People To Over 350 Cities Including Honolulu, Houston.

• Hillary Will Run In 2020 Because "She Feels She Was Put On Earth To Be President," Clinton Ally Says.

• 7 In 10 Millennials Say They Will Likely Vote Socialist.

• We Now Have Mass Public Unrest In France, Spain, Algeria, Iraq, Lebanon, Egypt, Hong Kong, Venezuela, Chile, Ecuador And Bolivia.

• EU Approves Brexit Delay Until Jan. 31 As Johnson Hopes To Trigger General Election.

• Stocks Squeeze To Record High On Trade & Brexit Hope (Again).

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 66.5 -1.0 basis point.

• China Sovereign CDS 38.25 -.5 basis point.

• Bloomberg Emerging Markets Currency Index  66.38 +.01%.

• FTSE 100 futures +.25%.

• S&P 500 futures +.08%.

• NASDAQ 100 futures +.24%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (AGCO)/.80

• (AN)/1.13

• (BP)/.09

• (COP)/.74

• (GLW)/.40

• (CMI)/3.84

• (DBD)/.24

• (ETN)/1.51

• (GM)/1.38

• (HCA)/2.13

• (IR)/1.91

• (K)/.91

• (MLM)/3.49

• (MA)/2.01

• (MRK)/1.23

• (PFE)/.61

• (R)/1.49

• (SHOP)/.10

• (WAT)/2.13

• (WH)/1.00

After the Close:

• (AMD)/.18

• (ALL)/2.57

• (AMGN)/3.53

• (CHRW)/1.14

• (CAKE)/.55

• (CB)/2.61

• (TCS)/.09

• (EA)/.86

• (MXIM)/.49

• (MDLZ)/.60

• (PSA)/2.75

• (SYK)/1.90

• (YUMC)/.54

• (ZEN)/.06

Economic Releases
9:00 am EST

• The S&P CoreLogic CS 20-City MoM for Aug. is estimated to fall -.1% versus a +.02% gain in July.
  

10:00 am EST

• The Conference Board Consumer Confidence Index for Oct. is estimated to rise to 128.0 versus 125.1 in Sept. 

• Pending Home Sales MoM for Sept. is estimated to rise +.7% versus a +1.6% gain in Aug.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Japan Retail Trade report, US weekly retail sales reports, loT Solutions World Congress and the (BA) CEO's testimony to Senate could also impact trading today.

BOTTOM LINE: Asian indices are 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 day.