Friday Watch

Evening Headlines

Bloomberg:           

• Qantas Slashes Flights in Australia as Rising Oil Prices Bite.
• Australia Bonds Extend Rally for Biggest Weekly Gain in a Decade.  
• Recession Fears Sink Canadian Banks Into 20% Drop From High.
  
• Mexico Delivers Record Rate Hike, Says More Increases Coming.
• Stocks Set for Steady Asia Open Amid Bond Rally: Markets Wrap.
• World’s Most Watched Oil Data Won’t Be Released This Week.
• N.Y. Among Blue States Seeking Gun Limits to Blunt Court Ruling.
  
• Smith & Wesson Leads Rally in Gun Stocks After N.Y. Ruling.
  
• Analysts Are Very Sure of Profit Estimates Everyone Else Hates.  
• ‘Coast to Coast’ Housing Correction Is Coming, Says Moody’s Chief Economist.
• Wall Street South Gets Biggest Win in Griffin’s Grand Miami Plan.
• Citadel Move Is 'Punch in the Gut' for Chicago. 
• S&P 500 May Have Another 24% to Fall, 150 Years of Market History Shows.   
• Steel Pipes for Drilling Oil Are the New Semiconductors.

Wall Street Journal:

• Powell Pressed Over How Fed Would Respond to Economic Slowdown.
• Fed Stress Test Finds Big Banks Can Weather Severe Recession.
• Fed Official Calls for Aggressive Rate Hikes.
• The Supreme Court Vindicates the Second Amendment. A 6-3 majority recognizes a right to carry guns in public for self-defense.
• McDonald’s Tightens Ownership Rules as It Seeks New Franchisees.
• U.S., European Economies Slow Sharply as Recession Risks Grow.
• Germany Looks at Potential Rationing of Natural Gas After Russia Cuts Supply.
• What to Know Before Flying This Summer as Cancellations and Delays Mount.

Fox News:

• Social media erupts over liberal governor's fiery reaction to Supreme Court's landmark ruling on guns.
• Nancy Pelosi's husband charged with DUI weeks after Napa car crash.
• FANCY NANCY: Bombshell report exposes Pelosi's lavish lifestyle, husband's troubled history.

CNBC.com:

• European leaders formally accept Ukraine as a candidate to join the EU.
• Intel warns Ohio factory could be delayed because Congress is dragging its feet on funding.
• Fanatics is in talks to buy sports betting company Tipico, sources say.
• Stocks making the biggest moves after hours: FedEx, Sarepta Therapeutics and more. 
  

MarketWatch:          

• You shouldn’t trust the stock-market bounce until the S&P 500 is back above 3,800, analysts say.
  
• Energy ETFs are the unloved relative to ‘outstanding’ gains as growth bets in stock market head for worst first half ever.  
• The S&P 500 could slide another 33% in a ’70s-style inflation environment: Société Générale.  
• Ray Dalio’s Bridgewater increases short bets against Europe stocks.  
• Inflation is ‘eroding the comfort level’ Americans have about their cash savings.  
• These ‘zombie’ companies could feel the cash burn, warns New Constructs.

Zero Hedge:

• Police Department Shows Off 'Pride Cruiser' Which Encourages People To "Report Hate Crimes". 
• What Is Stagflation And Why Has The Establishment Been In Denial About It?
• "I Don't Believe In Censoring Art": Paramount CEO Rejects Trigger Warnings.
• Tata Technologies' CEO Puts India In The Semiconductor Spotlight.
• United Airlines Cuts 12% Of Newark Flights To Reduce Delays.
• Nikola's Trevor Milton Faces New Fraud Charge Related To Purchase Of A Utah Ranch Using Stock.
• This Is Not The Time To Exit Commodities, Recession Or Not.
• "Chicago Is Like Afghanistan": Ken Griffin Is Moving Citadel To Miami, Leaving Chicago Crime Cesspool Behind.
• China Faces Power Shortage As Heatwave Pushes Demand To Record.
• US stocks bounced back from disappointing PMIs as yields and commodity prices declined - Newsquawk Asia-Pac Market Open.
• Ukraine Granted EU Candidate Status As US Provides Another $450 Million In Military Aid.
• Food Inflation Is The Litmus Test.
• All 33 Banks Pass Fed Stress-Test, Setting Stage For Billions In Buybacks.
• Global PMI misses see bonds and havens bid and cyclicals shunned - Newsquawk US Market Wrap.
• At The Military Olympics, October 2019, Wuhan, China, Athletes Caught COVID.
• Stocks & Bonds Surge As Recession Fears Tank Rate-Hike Odds.

Newsmax: 

• Afghanistan Auditor: State, USAID No Longer Cooperating in Review of Flawed US Pullout.
• US Sending Advanced Rocket Systems, Other Aid to Ukraine.

TheGatewayPundit.com: 

• Maricopa County Republican Committee Executive Board To Reject 2020 Presidential Election After Election Audit and “2000 Mules” Documentary.
• Day Before J6 Committee Hearing, FBI Agents Raid Home of Trump DOJ Official Jeffrey Clark in Pre-Dawn Raid –Forced into Street in His Pajamas.
• “Is That the Choice? $5 a Gallon Gas or a $61,000 Electric Car?” – Peter Doocy Spars with Karine Jean-Pierre Over Biden’s Insane Policies (VIDEO).
• Courts Seal Records Of Former Clinton Aide And Epstein Associate Who Committed Suicide
• The Biden Administration Plans To Allow Boys In Girls Bathrooms And Locker Rooms Under Title IX Revision.
• North Dakota Attorney General Sounds Alarm On Bill Gates Buying Massive Amounts Of Farmland.
• Interactive Map Details Destruction of Numerous US Food Manufacturing Plants, Grocery Stores, etc. — Compares US Incidents to Global Trends.
• WATCH: Here is 12 Minutes of Democrats Denying Election Results – Sore Loser Hillary Clinton is the Worst Offender!

 The Epoch Times:

• Bank Runs Across China Trigger Complaints About Obtaining Cash.
• Critical Race Theory is Part of Globalist Power Grab: Expert.
• US Needs to Decouple From China: Expert.

OpenVAERS:

• VAERS US COVID Vaccine Adverse Event Reports. 831,800 Reports(+2,492 from prior week) Through June 10th, 2022.

SKirsch.com:

• Using the MGH numbers with our own VAERS queries, we have 247 cases per million doses from the MGH study divided by 5.97 cases per million doses from VAERS. 247/5.97 = 41. This suggests that the VAERS under-reporting factor (URF) is 41X.

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 +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 136.25 +.25 basis point. 

• China Sovereign CDS 81.75 unch.
  

• Bloomberg Emerging Markets Currency Index 50.42 -.04%.  
• Bloomberg Global Risk-On/Risk Off Index 4,574.0 +258.0 points.
• Volatility Index(VIX) futures 29.0 -.03%.
• Euro Stoxx 50 futures +.15%.

• S&P 500 futures -.18%.

• NASDAQ 100 futures -.11%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (KMX)/1.55
• (CCL)/-1.14
  

After the Close:

• None of note
  

Economic Releases

10:00 am EST

• New Home Sales for May is estimated to fall to 590K versus 591K in April.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Bullard speaking, Fed's Daly speaking, German IFO Guidance and the (CCL) business update could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

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