Wednesday Watch

Evening Headlines

Bloomberg:             

• China Eyes Afghanistan’s $1 Trillion of Minerals With Risky Bet on Taliban.  
• Fed Policy Draws Chinese Criticism as PBOC Goes Its Own Way.
• U.S. Tells Aid Groups to Prepare for 50,000 Afghan Refugees.  
• Asia Stocks Edge Up After U.S. Record; Oil Steady: Markets Wrap.
  
• Oil Steady After Rally With Report Pointing to Easing Stockpiles.
• Five Things You Need to Know to Start Your Day.
  
• Biden to Stick to Aug. 31 Deadline for Withdrawal: Afghanistan Update.
• House Adopts $3.5 Trillion Budget Blueprint Backed by Biden.
• Bears Surrendering Again With S&P 500 Rally Defying All Bad News.  
• Goldman Requires Vaccines and Masks at Work to Fight Variant.  
• Wall Street During the Pandemic: The Impossible Is Now Commonplace.  
• Hedge Funds Are Hot Again. Good Luck Finding One That’ll Take Your Money.  
• Toll Brothers Misses on Orders as Luxury-Home Sales Falter.  
• U.S. Food Suppliers Are Having Trouble Keeping Shelves Stocked.

Wall Street Journal:

• Supreme Court Reinstates ‘Remain in Mexico’ Policy for Asylum Applicants.
• Biden Maintains Afghan Exit Deadline as Taliban Block Airport Access.
• Biden’s Rush to the Afghan Exits.
• The Democratic Centrists Fold, on Schedule.
• Teach Respect, Not Critical Race Theory.
• Let the Spooks Speak on Covid.

Fox News:

• Democrat points out the obvious to president over crucial withdrawal deadline backlash.
• Husband frustrated as he tries to rescue wife stranded in Afghanistan: 'I feel betrayed'.
• Arizona AG warns of potential border threat from terrorists freed by Taliban in Afghanistan.
• Kevin McCarthy: There is 'no possible way' we can evacuate Americans from Afghanistan by Aug 31.

NY Post: 

• US companies riddled with members of Chinese Communist Party: Devine. Boeing(BA), Qualcomm(QCOM) and Pfizer(PFE) are just three US companies that have employed dozens of CCP members in their Chinese facilities, the database reveals. 
  

CNBC.com: 

• Biden’s approval ratings have plummeted, and that could spell trouble for Democrats in Congress.
• Cramer says the turnaround of Best Buy proves Amazon’s ‘death star days’ are over.
• House Democrats clear path toward passing $3.5 trillion budget bill and infrastructure plan.
• Eyeglass retailer Warby Parker in IPO filing reveals rising sales—but also widening losses.
• Coinbase slammed for what users say is terrible customer service after hackers drain their accounts.
• Stocks making the biggest moves after hours: Nordstrom, Toll Brothers & more. 
  

MarketWatch.com:           

• The latest threat to Chinese stocks could come from U.S. regulators, experts warn.

Zero Hedge:

• Biden Finally Does 6-Minute Afghan Presser, Reiterates "Support Of Allies", Takes No Questions.
• It Finally Peaked: The Delta Of Delta Turns Negative.
• Largest US Food Distributor Having Trouble Keeping Shelves Stocked; Price Shock Imminent.
• It's Not The Jab, It's The Precedent.
• Taliban Appoints Former Gitmo Detainee As Afghanistan's New Defense Minister.
• Do Empty Shelves Count As Inflation?
• Container Ship Movement At Suspended Port Terminal In China Signals Imminent Reopening.
• Global Semi Crunch Could Once Again Worsen, As Delta Variant Ravages Key Production Outpost In Malaysia.
• 'All But One Turned Out To Be Negative': Rice University Retests Dozens Of Students After COVID False-Positives.
• Gundlach Warns US Is On A "Roadmap To Losing Global Reserve Currency Status".
• WTI Holds Gains Despite Smaller Than Expected Crude Draw.
• House Democrats Adopt $3.5T Budget Blueprint.
• "The Time Has Come. Enough Is Enough" - Fauci Dismisses "Freedom" In Call For Vaccine Mandates.
• Short-Squeeze Surge Sends Stocks To Record High As 'Soft' Data Slumps To 14-Month Lows.

Newsmax:  

• CIA Director Burns Secretly Met With Taliban Leader in Kabul.
• Taliban Warn of 'Consequences' If US Stays Beyond Deadline.
  

TheGatewayPundit.com:

• America’s Humiliating Defeat in Afghanistan Centered Around Misunderstanding the True-Enemy, Pakistan, and by Extension, China.
• BREAKING: US Military Has Started Withdrawing From Afghanistan – Biden Turns His Back on Thousands of Americans Stranded Behind Enemy Lines.
• “Surrenderer-in-Chief” – Trump’s New Ad Attacking Joe Biden is Fire (VIDEO).
• CNN Shockingly Pushes Back On Biden Press Secretary’s Claim That Americans Are Not Stranded In Afghanistan (VIDEO).
• NYC Mayor De Blasio on New Vaccine Mandates: “Human Beings Do Well When They Have Carrot and Stick” (VIDEO).
• “Radicalism We Haven’t Seen Since Lyndon Baines Johnson” – Democrats and Pelosi Pass $3.5 Trillion Spending Plan (VIDEO).
• Psaki: We Expect There Could be Some Americans Left Behind in Afghanistan (VIDEO).
• Biden White House Confirms Mission in Kabul Will End ‘Based on Achievement of Our Goals’ — Arming Taliban to the Teeth, Creating Terror State and Leaving Thousands of Americans Behind.

The Epoch Times:

• LIVE NOW: What’s Behind China’s Cyberwar?

Covid-19(Data, Maps, Graphs):

• Our World in Data:  New Global Covid-19 Cases(7-day rolling average graphs). New US Covid Hospital Admissions/ICU Admissions/Deaths
  
• FT.com:  Fully Vaccinated by Country(graph). Global Lockdown Stringency Index(map).
• Bloomberg.com:  International Travel Restrictions.  Case Graphs by State.
  
• NYTimes.com:  County Trends and Clusters. Local ICU Occupancy.
  
• Brown School of Public Health:  Covid Severity by State/County(map).  US Hospital Capacity(region).
  
• CovidActNow:  Covid Severity/Infection Rate by Metro Area.
  
• KFF:  US Vaccinations by Race/Ethnicity.
  
• Carnegie Mellon: Covid-Like Symptoms in Community. Covid Symptom Searches on Google. Covid-Related Dr.Visits.  Restaurant Visits. Wearing Masks. (graphs)
  
• Safegraph.com:  Commerce Patterns(graphs).

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 72.0 -1.0 basis point.

• China Sovereign CDS 34.75 unch.
  

• Bloomberg Emerging Markets Currency Index 59.73 -.02%.
• Bloomberg Global Risk-On/Risk Off Index 2,710.0 +1.0 point.
• Volatility Index(VIX) futures 19.65 -.41%.
• FTSE 100 futures +.11%.

• S&P 500 futures +.01%.

• NASDAQ 100 futures +.04%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (DKS)/2.82
• (DY)/.76
• (PLAB)/.22
  

After the Close:

• (ADSK)/1.12
• (BOX)/.19
• (GES)/.70
• (NTAP)/.95
• (CRM)/.93
• (SNOW)/-.15
• (SPLK)/-.69
• (ULTA)/2.55
• (WSM)/2.58
  

Economic Releases

8:30 am EST

• Durable Goods Orders for July is estimated to fall -.3% versus a +.9% gain in June.
• Durables Ex Transports for July is estimated to rise +.5% versus a +.5% gain in June.
• Cap Goods Orders Non-Defense Ex-Air for July is estimated to rise +.7% versus a +.6% gain in June.

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,552,700 barrels versus a -3,233,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -1,003,110 barrels versus a +696,000 barrel gain the prior week. Distillate inventories are estimated to fall by -909,110 barrels versus a -2,697,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to fall -.06% versus a +.4% gain prior.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Eurozone Import/Export Price reports and the weekly MBA Mortgage Applications report could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

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