Monday Watch

Today's Headlines

Bloomberg:      

• China’s Looming Budget Hole Poses Risk to Stimulus Efforts.  

• Slide of China’s Yuan Versus Peers Signals Risks Ahead.

• Global Times Hu Slams U.S. Over Wars, Pompeo Nazi Remarks.  

• U.S. Futures Push Higher; Asian Stocks to Rise: Markets Wrap.  Asian stocks looked set to start the week with gains after Friday’s U.S. jobs report smashed expectations and bolstered hope of a quick economic rebound. U.S. equity futures climbed. Futures pointed higher in Japan and Hong Kong. Australia has a holiday. S&P 500 contracts rose in early Asian trading, after the index posted a third weekly advance last week. The dollar traded mixed against its Group-of-10 peers, after sliding Friday. The Australian and New Zealand dollars strengthened, while the yen was little changed. S&P 500 futures gained 0.5% as of 7:31 a.m. in Tokyo. The index closed 2.6% higher Friday. Nikkei 225 futures rose 1.3%. Hang Seng futures climbed 1.1%. 

• Saudi Arabia and Russia Unite to Tackle OPEC’s Pinocchio Problem.

• Oil Advances Toward $43 After OPEC+ Extends Production Cuts.

• Defunding Police ‘Absurd,’ Says Top U.S. Homeland Official.

• N.Y. Has Fewest Positive Tests; U.K. Deaths Slow: Virus Update.

Wall Street Journal:

• Yes, America Is in a Cold War With China

• Live Updates: Democrats Plan Bill to Make It Easier to Prosecute Police Misconduct.

• Trump tells National Guard to leave D.C.

• Coronavirus Good News.

• Local Crime App Citizen Becomes a Key Tool During Protests.

• Protests Complicate Mayors’ Efforts to Combat Coronavirus.

• California, Some Other States See Virus Cases Rise.

• New York City Faces Next Big Test: Reopening.

• U.S. Shale Companies Are Turning the Oil Taps Back On.

• Airlines Got $25 Billion in Stimulus; Industry Still Expected to Shrink.

• Covid-19 Batters India’s Mumbai.

• Covid-19 Stalks Large Families in Rural America.

Fox News:

• Vandals deface, tear down these statues in George Floyd unrest.

• Sen. Cotton rips NY Times for caving to staff, challenges paper to ID wrong facts in op-ed.

• SHAUN KING: Dems running cities with worst police brutality records.

• Suspect, 27, nabbed in ‘violent’ attack on 82-yr.-old Trump supporter.

CNBC: 

• Coronavirus live updates: AstraZeneca approached Gilead about a potential merger.

• AG Barr says law enforcement isn’t systemically racist as protests against police brutality continue.

• Contact tracing has become a fast-growing job opportunity with many people still out of work.

• Casinos look to protect customers from themselves with new safety measures.

• Hospitals could struggle — and more will go bankrupt — until they get patients back in the door.

• China May exports slip back into contraction, imports worst in 4 years.

• Five charts that track the U.S. economy amid reopening progress.

• American Airlines outlines severance packages for high-level employees as coronavirus continues to weigh.

Zero Hedge:

• Minneapolis City Council To Disband City's Police Department.

• Car Plows Into Protesters In Brooklyn, Anarchists Attack Children's Hospital During 12th Night Of "Largely Peaceful" Protests.

• Major Bicycle Brand Suspends Sales To Police Claiming Bikes 'Weaponized' Against Protesters.

• De Blasio Plans To Shift Funds From NYPD To "Youth & Social Services" As UK Demonstrators Destroy 'Racist' Statues.

• Philly News Editor Ousted After Daring To Question Legitimacy Of Burning The City's Buildings Down.

• Saudi Aramco Boosts Oil Export Prices By Most On Record.

• Not The Onion: BLM Protesters Vandalize Abraham Lincoln Statue In London.

• NYT Editorial Page Head Quits After Internal Revolt Over Tom Cotton Op-Ed.

• The Status Quo Of Virtue-Signaling.

• Governments Have Crippled The World's Economies, Revolution May Soon Follow.

• White House Denies Widely-Repeated Story That Trump Wanted 10,000 'Active-Duty' Troops To End DC Protests.

• After Saying "Stay Home, Save Lives" And Shutting Parliament, Trudeau Attends Packed Protest Without Social-Distancing.

• Brazil Hides Data Showing Soaring COVID-19 Fatalities As Global Death Toll Tops 400k: Live Updates.

• China Unexpectedly Reports Record Trade Surplus As Exports Of Face Masks Soar.

• A Quarter Of Americans Skipped Meals Or Relied On Food Banks During Virus Lockdowns.

• The Cracks In The Financial System Are Getting Bigger... Here's What It Could Mean For Gold.

• From Blow To Bitcoin - The Escobars Believe They've Found The Real Satoshi.

• Trump Lashes Out Over Lagging NATO Spending - Pulls 9,500 Troops From Germany.

• Not Just Retail: Hedge Funds Flood Into Stocks; Net Leverage Highest In Over Two Years.

• Chaotic COVID Response Sparks Revival In Once Despised Plastics Industry.

Business Insider:

• Ditching the mall has become a badge of honor as the COVID-19 crisis leaves retailers scrambling to promote safety at stores.

• Eerie photos show empty cruise ships moored off coasts around the world as the coronavirus floors the industry.

• COVID-19 Executive Survey.

• New York City just unveiled its plan for outdoor dining. Here's how the city plans to use sidewalks, curb sides, and open streets for restaurants.

The Epoch Times:

• China Exports for May Slip Back Into Contraction, Imports Worst in 4 Years.

• Brian Kennedy: Did Communist China Miscalculate with the Hong Kong Security Law?

John Hopkins University:

• Coronavirus Global Cases. (map)

BNO News:

• Tracking coronavirus: Map, data and timeline.

KFF:

• State Data(Tests/Hospitalizations).

Night Trading

• Asian indices are +.75% to +1.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 87.75 -3.25 basis points.

• China Sovereign CDS 48.25 -.25 basis point.

• Bloomberg Emerging Markets Currency Index 61.87 +.10%.

• FTSE 100 futures n/a.

• S&P 500 futures +.72%.

• NASDAQ 100 futures +.60%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (THO)/-.07

After the Close:

• (CASY)/1.83

• (COUP)/1.07

• (SFIX)/-.14

Economic Releases

• None of note
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Germany Industrial Production report and the Deutsche Bank Industrials/Materials Summit could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST

BOTTOM LINE: Asian indices are modestly higher, boosted by commodity and industrial 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 week.