Tuesday Watch

Evening Headlines

Bloomberg:        

• China Bond-Selloff Fears Grow as Liquidity Begins to Tighten.
• Japan’s GDP Shrinks Less Than First Reported Amid Emergency.  
• Yen Down 6% Against Dollar Sits Out Global Recovery Trade.  
• U.K. Consumers Splashed the Cash as Lockdown Rules Eased.
• Despite Danger and Cost, Japan Gambles on Successful Olympics.
• Canada Set to Relax Quarantine Rules for Vaccinated Travelers.  
• Asia Reflation Momentum Puts Commodities, Shipping Stocks on Top.
• Asian Stocks Steady, U.S. Equity Futures Advance: Markets Wrap.
• Top Copper Nation Calls for Debate on How to Best Tap the Boom.  
• Oil Edges Lower With Rally Cooling After Bouncing Off 2018 High.  
• Five Things You Need to Know to Start Your Day.
• Mass Consolidation Turns Food, Energy Firms Into Hacking Targets.  
• Hackers Breached Colonial Pipeline Using Compromised Password.
• Biotech Shares Climb as Biogen Approval Stokes Optimism.  
• Tesla Executive and Top Musk Lieutenant Has Left the Company.  
• Biden Talks With GOP Stall as Bipartisan Group Plans Alternative.  
• Real Estate ETFs Emerging as a Bet on Global Supply-Chain Mess.

Wall Street Journal:

• FDA Approves First Alzheimer’s Drug in Nearly Two Decades.
• The Fed’s Risky Fill-the-Punch-Bowl Strategy.
• America’s Covid Groupthink Functioned Like China’s Repression.
• An Alzheimer’s Breakthrough, At Last.
• Options Traders Bet on Return of $100 Oil.
• Commodity Price Surges Add to Inflation Fears.
• U.S. Report Found It Plausible Covid-19 Leaked From Wuhan Lab.
  

Fox News:

• Bill Gates' divorce could expose affairs, inappropriate behavior covered up by NDAs: report.
• Harris mocked for passing out treats in shape of her faceless head to reporters.
  

CNBC.com:

• Apple is turning privacy into a business advantage, not just a marketing slogan.
• China’s cautious new graduates flock to state-backed jobs.
• Airport security company CLEAR files to go public as post-pandemic travel picks up.
• Stitch Fix shares soar as sales top estimates, styling service raises full-year outlook.
• Biogen shares surge 38% after FDA OKs Alzheimer’s drug, first new therapy for the disease in 18 years.

MarketWatch.com:    

• As AMC stock surges, SEC says it’s watching memes for ‘disruptions of the market, manipulative trading, or other misconduct’.  
• Bitcoin faces fresh scrutiny as police call for new powers to freeze crypto assets in the U.K.

Zero Hedge: 

• "Do Not Come": Kamala Goes Full Trump, Tells Guatemalans To Stay Away.
• Blinken Says Biden Will Put "Future Cyberattacks" Front & Center In Putin Summit.
• Malaysian Police Use Heat Drones To Check People's Temperatures From Above.
• "You're Emotionally And Mentally Abusing Children": Mom Goes Nuclear On School Board Over CRT, BLM 'Indoctrination'.
• Trump Planned To Haul Fauci, Daszak In Front Of US Presidential Commission, Demand China Reparations.
• China Will Use "Coercive Power" To Force Digital Yuan On Population.
• The Mysterious $85 Billion Surge In China's FX Reverse Repo.
• Consumer Credit Hits New Record Despite Unexpected Decline In Credit Card Usage.
• "Let's Find A Person We Can Trust": House GOP Leader Says Fauci Needs To Go.
• Crypto Just Crashed: Is The DoJ Dumping Their 'Recovered' Ransoms?
• Pornstar Goes Viral After Using Ben Graham's 'Investing Bible' To Promote New Sh*tcoin.
• Biotechs Burst Higher But Bonds, Bitcoin, & The Buck Breakdown.

Newsmax:

• Iran Weeks Away From Nuclear 'Breakout' as Biden Team Mired in Confusion.
  

TheGatewayPundit.com:

• UPDATE on Arizona Audit: Georgia Team Is Coming Tomorrow – OAN Reporter Christina Bobb Says More States May Be Coming.
• Psaki Gives Nonsensical Answer When Asked Why Joe Biden Failed to Mention D-Day on its 77th Anniversary (VIDEO).
• Republicans Flip Mayorship of McAllen, Texas – Major Border Town with 85% Hispanic Population.
• John Fredericks: It Wasn’t Just the Governor – Kemp’s Wife Was Booed on Stage at Georgia Convention, Too.

The Epoch Times: 

•  ‘Enough Is Enough’: DeSantis Signs Bills to Confront ‘Nefarious’ Chinese Influence.

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 unch. to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 83.25 -1.75 basis points.

• China Sovereign CDS 36.5 unch.
  

• Bloomberg Emerging Markets Currency Index 61.68 unch.
• Bloomberg Global Risk-On/Risk Off Index 3,494.0 -28.0 points.
• Volatility Index(VIX) futures 19.95 -.26%.
• FTSE 100 futures +.12%.

• S&P 500 futures +.15%.

• NASDAQ 100 futures +.27%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (ASO)/.83
•  (NAV)/.44
• (THO)/2.27
  

After the Close:

• (ABM)/.71
• (CASY)/.86
  

Economic Releases

6:00 am EST

• The NFIB Small Business Optimism Index for May is estimated to rise to 101.0 versus 99.8 in April.
  

8:30 am EST:

• The Trade Balance report for April is estimated at -$68.7B versus -$74.4B in March.

10:00 am EST

• JOLTS Job Openings for April is estimated to rise to 8200K versus 8123K in March.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The France Balance of Trade report, $58B 3Y T-Note auction, weekly US retail sales report, BofA Tech Conference, Credit Suisse Energy Conference, Goldman Sachs Healthcare Conference, JPMorgan Consumer/Retail/Luxury Conference, UBS Industrials/Transports Conference and the Baird Consumer/Tech/Services Conference could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are modestly higher, boosted by consumer and technology 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.