Monday Watch

Today's Headlines

Bloomberg:  

• Italy’s Drastic Containment Rules Don’t Seem to Have Changed Life Much.  

• Italy Braces for Market Verdict on Conte Virus Containment Plan.  

• Italy’s Deaths Rise 57%; France Bars Large Events: Virus Update.

• U.S. Moves From Containment to Preparing for Daily Disruptions.

• U.S. Targets Cruise Lines; France Bars Big Events: Virus Update.

• There Is a ‘Tipping Point’ Before Coronavirus Kills.  

• Fauci Says Sense on Coronavirus Scope Is ‘Not Encouraging’.

• JPMorgan Sees ‘Early Signs’ of Stress on Credit and Funding.      

• Saudi Prince’s $2 Trillion Aramco Vision Fades on Oil-Price War.

• Oil Stokes Risks in ‘Close-Your-Eyes-and-Sell’ Emerging Markets.

• Mideast Stocks Plunge as Producers Head Toward Oil-Price War. 

• Oil Crashes, Equities Plunge in ‘Wild’ Trading. Oil prices crashed and U.S. equity futures plunged at the open Monday in Asia after crude producers launched a price war, an additional disruption to a global economy already struggling thanks to the coronavirus. Among the tumultuous moves to kick off the week: Crude plummeted more than 30% at one point, sliding the most since the Gulf War in 1991. Futures on the S&P 500 Index -- which face trading curbs if they move by 5% -- cratered as much as 4.6%. Norway’s krone slid to its weakest against the dollar since the 1980s. Mexico’s peso fell as much as 6%, to the weakest since the aftermath of border-wall advocate President Donald Trump taking office. Australian and New Zealand 10-year government bond yields hit fresh record lows. Australia’s benchmark stock index plunged the most since 2008. The yen soared to its strongest since 2016.

• Oil Drops 31% in Worst Loss Since Gulf War as Price Fight Erupts.  

• Goldman Warns Oil Could Dip Into the $20s as Price War Begins.

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

• Once Again, It’s During a Stock Rout That Active Managers Shine.

• Rout in U.S. Stock Futures Would Trigger Trading Curbs at 5%.

Wall Street Journal:

• Spendthrift Illinois Races Toward Default.

• Coronavirus Epidemic Exacerbates Metals Glut.

• What to Wear to Look Current in 2020.

Fox News:

• Kamala Harris endorses this Dem for president, ready to help campaign.

CNBC:

• OPEC deal collapse sparks price war: ‘$20 oil in 2020 is coming’.

• Coronavirus live updates: Italy locks down a quarter of its population.

• Virus-hit cruise ship off California’s coast will dock in Oakland.

• Saudi Aramco shares fall below IPO price for first time, Gulf stocks plummet after OPEC deal failure.

Zero Hedge:        

• Market Massacre: Oil Crashes 30%, Dow Down 1,000, VIX Explodes As Spoos Crater.

• Italy Places Milan Region Under Quarantine As First Covid-19-Linked Death Reported In Latin America: Live Updates.

• Elon Musk Defends "Dumb" Coronavirus Tweet With Inane, Pompous Sounding Non-Sequiturial Word Salad.

• US Coronavirus Cases Surpass 500 As Italian Deaths Surge 57%: Live Updates.

• Italy's Salvini Calls For Short Selling Ban, Citing "Soros Who Built His Fortune Betting Against Italy".

• Confused Biden Calls Himself "Obiden Bama" & Says "We Can Only Re-Elect Donald Trump".

• Global Air Traffic Set For Worst Year On Record.

• Fauci: Coronavirus Spread In America 'Not Encouraging'; Says Americans Should Avoid Large Gatherings, Especially If Vulnerable.

• After State Of Emergency, Cuomo Hints At Mass Quarantines For New York.

• Prosecutor Says Weinstein Sentence Should Reflect "Lifetime Of Sexual Abuse".

• Washington State Warns Mail-In Ballot Voters Not To Lick Envelopes.

• Lebanon Announces Default On $1.2BN Debt Payment In Historical First.

• How To Avoid Getting Infected By The Coronavirus.

• Elon Musk Says Panic About Coronavirus, Which Has Killed Over 3,400, Is "Dumb".

Business Insider:

• How coronavirus is upending corporate America.

John Hopkins University:

• Coronavirus Global Cases. (map)

BNO News:

• Tracking coronavirus: Map, data and timeline.

Google Docs:

• Coronavirus Testing by State.

Night Trading

• Asian indices are -3.5% to -2.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 82.0 +12.25 basis points.

• China Sovereign CDS 55.5 +6.25 basis points.

• Bloomberg Emerging Markets Currency Index 62.99 -.44%.

• Euro Stoxx 50 futures -4.5%.

• S&P 500 futures -4.4%.

• NASDAQ 100 futures -4.3%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (CYOU)/.58

• (SOHU)/-.40

• (THO)/.70

After the Close:

• (CASY)/.89

• (SFIX)/.07

• (MTN)/5.43

Economic Releases

• None of note

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China CPI report, German Industrial Production report, Deutsche Bank Media/Internet/Telecom Conference, CERAWeek 2020 and the (BIG) investor day could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST

BOTTOM LINE: Asian indices are sharply lower, weighed down by technology and commodity shares in the region. I expect US stocks to open sharply lower and to maintain losses into the afternoon.  The Portfolio is 25% net long heading into the week.