Monday Watch

Today's Headlines

Bloomberg:

• China Says Only Patriots Can Lead Hong Kong as Tensions Rise.  

• Two Hong Kong Teenagers Shot By Police During Morning Rush Hour: Apple Daily.  

• Look Within for China’s True Growth Threat.

• Bolivian President Evo Morales Resigns After Army Tells Him to Go. 

• Stocks Edge Up in Asia With S&P 500 at Record. Stocks in Asia nudged higher and U.S. equity futures were steady as investors parsed the latest developments in the trade conflict and kept an eye on Alibaba’s Singles’ Day for a gauge of consumer health in China. Shares opened modestly higher in Tokyo and Sydney, while South Korean equities were little changed. Contracts on the S&P 500 were flat after the U.S. benchmark index eked out another record high on Friday, as Treasuries continued to decline. The 10-year yield ended the week at 1.94%. Veterans Day in the U.S. means no Treasuries trading. President Donald Trump said trade talks with China are moving along “very nicely” and Beijing wants a trade deal “much more than I do.” The offshore yuan was steady after five weeks of gains. Futures on the S&P 500 were little changed as of 9:03 a.m. in Tokyo. The underlying gauge added 0.3% on Friday. Australia’s S&P/ASX 200 Index added 0.5%. Japan’s Topix index advanced 0.3%. South Korea’s Kospi was flat.  

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

• Hard Seltzer Craze Makes White Claw Maker a Multibillionaire.

• Spain’s Socialists Fall Short in an Election Gamble Gone Wrong.

Wall Street Journal:

• Unloved Assets Join Market Rally in New Sign of Optimism.

• Aramco’s Profit Slide Shows Scale of Risk for Investors.

• Warren Is the WeWork Candidate.

• Cold Welcome for Veterans on Campus.

• Mexico Loses Its Sovereignty to Cartels.

• Rising Yields Quiet Bond Market’s Key Recession Alarm.

MarketWatch.com:

• Get ready for another Santa Claus rally to boost stocks, Fundstrat’s Tom Lee says

• Nikki Haley says top White House advisers tried to subvert Trump 

Fox News:

• Trump Jr. says Mueller probe led to eye-opening revelation about Dems.

CNBC:

• Alibaba(BABA) Singles’ Day sales hit $13 billion in first hour.

• These 4 franchises are getting new life on Disney(DIS)+.

Zero Hedge:     

• The Long March Has Paid Off: Millennials Love Socialism.

• California Approves $3.2 Billion Bond For High Speed Train To Nowhere.

• McKinsey Under Federal Criminal Investigation Over Its Work Advising Bankrupt Companies.

• Will Durham Investigation Tank Impeachment Efforts?

• Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani.

• Saudi Arabia's Final Attempt To Boost Aramco's Valuation.

• Bezos Begged Bloomberg To Run In 2020.

• Broke Bond Markets Mounting: Italy Surpasses Greece As Europe's Riskiest Sovereign.

Business Insider:

• Child porn runs rampant on big tech platforms despite detection and prevention methods, according to New York Times investigation.

Telegraph:

• Economy to escape recession scare in pre-election boost for Boris Johnson.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 63.25 -1.5 basis points.

• China Sovereign CDS 36.25 -.5 basis point.

• Bloomberg Emerging Markets Currency Index 65.90 -.07%.

• FTSE 100 futures -.02%.

• S&P 500 futures -.23%.

• NASDAQ 100 futures -.28%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• None of Note

After the Close:

• (FGEN)/-.57

• (TDW)/-.29

• (ICUI)/1.62

Economic Releases

• None of note

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The UK GDP report and the Credit Suisse Healthcare Conference could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 100% net long heading into the week.