Tuesday Watch

Evening Headlines

Bloomberg:  

• China Installs Hardline Team to Enforce Hong Kong Security Law.   

• Trump Preparing Orders on China and Manufacturing, Top Aide Says.

• Hong Kong’s Richest Man Is Losing Friends in China and the West.  

• Here’s Why Thailand’s Dire Economic Outlook Is the Worst in Asia.  

• Asia Stocks Set for Muted Start; U.S. Shares Rally: Markets Wrap. Asian stocks looked set for a mixed start Tuesday after strong gains Monday that were carried into the U.S. The dollar fell for a fifth day. Futures edged lower in Japan and pointed to a modest rise in Hong Kong and Australia. S&P 500 futures dipped after the benchmark rallied for a fifth session, with tech gains pushing the Nasdaq Composite to a record high. Amazon.com Inc. shares rose past $3,000 for the first time, while Tesla Inc. extended a five-day rally to more than 40%. Treasuries dipped. The dollar slid to the weakest since June 10 as risk-on sentiment sapped demand for havens. S&P 500 futures fell 0.1%. The S&P 500 Index increased 1.6% Monday. Nikkei 225 futures fell 0.1%. Hang Seng futures rose 0.7%. S&P/ASX 200 futures climbed 0.5%. The Stoxx Europe 600 Index gained 1.6%.

• Fed Inflation-Link, U.S.’s Bailout List, Dire Thailand: Eco Day.

• Oil Holds Near $40 With Virus Surge Clouding Outlook for Demand.

• Firm Linked to Pelosi’s Husband Got Virus Loan, Data Show.

• Keystone XL Pipeline Stays Blocked in U.S. Supreme Court Order.  

• The VIX Is Still Flashing Warnings for Stock Bulls on a Rampage.

Wall Street Journal:

• Hospitals Struggle to Block Internal Spread of Covid-19.

• Well-Heeled and Connected Got Small Business Loans, Too.

• Colin Kaepernick, Disney Team Up for Series on Racial and Social Injustices.

• The All-American Battle for Your Delivery Dollars.

• U.S. Business Groups Urge China to ‘Redouble Efforts’ to Implement Trade Deal.

Fox News:

• Alleged Epstein enabler Ghislaine Maxwell brought to NYC jail amid speculation she is ready to spill.

• Gov authorizes activation of national guard over rising crime and child's death.

CNBC.com:

• Shoppers across the country are retreating again as coronavirus cases surge.

• Stocks making the biggest moves after hours: Tesla, Red Rock Resorts, Fitbit and more.

• Coronavirus hospitalizations grow in 23 states as Texas admissions soar to new record.

• Fauci says average age of U.S. coronavirus patients has dropped by 15 years as sun states gets hit.

• Commercial mortgage delinquencies surged at record monthly rate in June.

MarketWatch.com:    

• Coronavirus can spread in the air ‘beyond any reasonable doubt,’ over 200 scientists tell the World Health Organization.

Zero Hedge:    

• Atlanta Mayor Announces Positive COVID Test Hours After Governor Declares State Of Emergency.

• Here Are The Thousands Of Investment Advisors And Portfolio Managers Who Received Government Bailouts.

• Google Joins Twitter, Facebook In Refusing To Cooperate With Hong Kong Nat Sec Law.

• Foreign Students On Visas Must Leave USA If Schools Go Online-Only: ICE.

• Tesla Is Now Bigger Than Intel, Verizon, AT&T, Walt Disney And Bank of America.

• Odds On Kanye Becoming President Slashed From 500/1 To 50/1.

• Ex-Reddit CEO Claims She Knew About Ghislaine Maxwell "Supplying Underage Girls For Sex" In 2011 - Then Locks Twitter Account.

• Dr. Fauci Warns Any Protection Provided By COVID-19 Vaccine May Be "Transitory".

• Trader: "Markets Are Basically Just A Liquidity Meth Lab...".

• Big-Tech Wrecks Short-Shorts In Another Melt-Up, Bonds Shrug.

Business Insider:

• Arizona healthcare workers say they're seeing severe coronavirus cases in people from their 20s to their 90s, but people aren't taking it seriously — in 'denial' they won't get it.

• Arizona's healthcare workers say they're working 90-hour weeks and are worried they don't have enough well-trained staff to treat severe coronavirus cases.

• Anti-mask shoppers at Costco and Target throw tantrums and tear down mask displays, revealing a growing crisis for retail workers.

•  Walmart and Target pull Washington Redskins products amid calls for the team to change its name.

The Epoch Times:

• China Influences Higher Education and Research in Netherlands: Think Tank.

Digital Blackboard:

• Daily New Cases by Region.

Worldometer:

• New Cases/Deaths by state.

Rt Covid-19:

• How fast virus is growing by state.

KFF:

• State Data(Tests/Hospitalizations).

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 79.0 -1.75 basis points.

• China Sovereign CDS 44.25 -1.0 basis point.

• Bloomberg Emerging Markets Currency Index 60.63 +.05%.

• FTSE 100 futures +.01%.

• S&P 500 futures -.06%.

• NASDAQ 100 futures +.25%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (PAYX)/.60

After the Close:

• (LEVI)/-.42

• (SGH)/.67

Economic Releases
10:00 am EST

• JOLTS Job Openings for May are estimated to fall to 4500 versus 5046 in April.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The France trade data report, $46B 3Y T-Note auction and the weekly US retail sales reports could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly higher, boosted by industrial and technology shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.