Today's Headlines

Bloomberg: 

• Greek Senior Bank Bonds Fall on Dijsselbloem Bail-In Comment. (video) Senior bonds of Greek banks tumbled after Euro-area finance ministers protected depositors from any losses in the nation’s 86 billion-euro ($96 billion) bailout. While Greece’s third bailout will spare depositors in any restructuring of the nation’s financial system, senior bank bondholders may not be so lucky, according to comments from Eurogroup President and Dutch Finance Minister Jeroen Dijsselbloem. The bondholders will be in line for losses if Greek lenders tap into any of the financial stability funds set aside in the new bailout.

• Russia Sales Outlook Worst in BRIC Markets on Oil, Recession. Russia is the standout these days among the biggest emerging markets, but for all the wrong reasons. Beset by the country’s first recession since 2009, oil selling at half its five-year average price and international sanctions linked to the Ukraine conflict, Russian companies are poised to post the biggest drop in sales among the four so-called BRIC nations, data compiled by Bloomberg show. Two of the others, Brazil and India, also are projected to slump, while China is seen growing modestly. The 50 companies listed in the benchmark Micex Index will post an average 17 percent ruble-denominated revenue decline in the next 12 months, according to analysts’ estimates. In dollar terms, the forecast is for a 25 percent slump.

• Protests Keep Heat on Rousseff as Longest Slump Since 1931 Looms. Nationwide street protests Sunday against the government kept the pressure on embattled Brazilian President Dilma Rousseff as the country heads to its longest recession since 1931. More than half a million people took to the streets to denounce corruption and economic mismanagement amid calls for Rousseff’s impeachment or resignation. While the rally drew fewer people than similar demonstrations in March, rising unemployment and the fastest inflation in more than a decade will keep Rousseff under fire. 

• Goldman Sachs(GS) Cuts Yuan Forecast on Risks From Economic Slowdown. Goldman Sachs Group Inc. lowered its forecast for the yuan, saying China’s deepening economic slowdown will weaken the currency and increase volatility. The yuan will decline to 6.60 per dollar in 12 months, and to 6.70 per dollar by the end of 2016, London-based strategist Kamakshya Trivedi wrote in a note Monday. The bank previously predicted the currency would trade at 6.15 per dollar and 6.20 by those dates, respectively. The yuan was little changed at 6.3947 Monday.

• Chilean Peso Drops to 12-Year Low as Copper Declines on China. Chile’s peso fell to a 12-year low as copper plunged amid concern that China, the biggest buyer of the metal, is growing more slowly than official data suggest. The peso slid 0.9 percent to 690.26 per U.S. dollar at 11:58 a.m. New York time. It was on course for its lowest close since 2003, when it weakened in the aftermath of the Asian crisis and Argentina’s default. Copper, which accounts for half of Chile’s exports, fell 1.6 percent in New York to a six-year low of $2.314 a pound. Three-month inflation-linked swaps slid 0.15 percentage point to minus 3.12 percent.

• Emerging Currencies Extend Longest Selloff Since Turn of Century. (video) Emerging-market currencies fell, extending the longest stretch of weekly declines since 2000, as Malaysian assets tumbled, Turkey’s lira touched a record low for a third day and the ruble and Russian stocks retreated amid a slump in oil. A gauge tracking 20 of the most-traded developing-nation currencies dropped 0.3 percent, with the ringgit weakening to the lowest level since 1998 and Thailand’s baht slumping as an explosion struck Bangkok’s central shopping district. The currency measure has fallen for eight straight weeks as the prospect of higher U.S. interest rates and the shock devaluation of the yuan magnified risks. The MSCI Emerging Markets Index of stocks retreated 1.1 percent to 854.41 at 11:30 a.m. in New York.  

• European Stocks Close Higher, While Germany’s DAX Index Declines. (video) After fluctuating between gains and losses throughout the day, European stocks ended with advances. But not those in Germany. The Stoxx Europe 600 Index rose 0.3 percent to 387.26 at the close of trading in London, recovering from a decline of as much as 0.6 percent triggered by a report that showed manufacturing in the New York region unexpectedly shrank. Volume of Stoxx 600 shares changing hands was a third lower than the 30-day average, a factor that might have contributed to the volatility.

• Commodities Slump Bolsters Treasuries as U.S. Stocks Advance. (video) A renewed slump in commodities damped inflation expectations and boosted demand for Treasuries, while China’s shock devaluation of its currency continued to roil emerging markets. The Bloomberg Commodity Index sank to a 13-year low as decline in assets from copper to aluminum boosted the value of fixed-income assets. Copper sank 1.7 percent, adding to six weeks of declines, on signs of slowing growth in China. Aluminum also slipped.

• Goldman(GS) Sees Iron Ore Slumping 30% on Supply, Steel Outlook. Iron ore prices may tumble about 30 percent over the next 18 months as supply expands while steel output falters, according to Goldman Sachs Group Inc., which said the impact on the market from China’s devaluation was a sideshow. Prices retreated. “Supply is likely to diverge further from demand,” analysts Christian Lelong and Amber Cai wrote in a report. “Contrary to market consensus, we believe that peak-steel production will be followed by a contraction” in China, they wrote, sticking with price forecasts for the next four quarters.

• The Connection Between China and Commodities Prices. (video)

• Dallas Fed Names Harvard Professor Robert Kaplan as Next President. The Federal Reserve Bank of Dallas has named Robert Steven Kaplan, a former Goldman Sachs Group Inc. executive who left to teach at Harvard in 2006, as its new president. Kaplan, 58, will take his post Sept. 8, the Dallas Fed said Monday in a press release. He will replace Richard Fisher, who was president from April 2005 to March 2015. Helen Holcomb, the Dallas Fed’s first vice president, has served as interim head since Fisher retired.

• Buzzkill Profs: Hedge Funds Do Half as Well as You Think. Their study shows that due to inherent biases in the way hedge-fund databases compile results, the industry's returns have been about half as strong as they appear. The average annualized return for the industry since 1996 goes from 12.6 percent to 6.3 percent when the biases are removed from the data, according to the paper.

• After Curing Hepatitis C, Gilead Works to Vanquish More Viruses. Gilead Sciences Inc., basking in the success of its cure for hepatitis C, is setting ambitious goals to vanquish two other major viral scourges: HIV and hepatitis B. Even with some promising signs in early trials, the biggest biotechnology firm in the world faces long odds in finding a way to rid humanity of the diseases. And it’s unclear whether a cure for either virus would produce the kind of lucrative return that Gilead has earned from its treatments for hepatitis C.

Fox News: 

• At least 27 dead in Bangkok bomb blast. (video) At least 27 people are dead and 78 injured in an explosion that rocked the area near the popular Erawan shrine in a busy intersection in Bangkok, Thailand, Reuters reported Monday morning. A spokesman for Thailand's ruling junta says at least two bombs were found at the scene. At least one planted on a motorcycle had detonated. Security video showed a powerful flash as the bomb exploded. "We are not sure if it is politically motivated, but they aim to harm our economy and we will hunt them down," Deputy Prime Minister Prawit Wongsuwon told reporters.

• Ex-officials prosecuted for mishandling gov’t info see ‘double standard’ in Clinton case. (video) Ex-officials who were prosecuted and had their lives upended for allegedly mishandling sensitive records are accusing the Obama administration of a "double-standard" in its approach to the Hillary Clinton email scandal. This administration has charged more people under the Espionage Act, a World War I-era law once used to go after major breaches, than any other in history. While the FBI is looking into Clinton's server amid revelations of state secrets potentially passing through it, some critics -- including those charged under that act -- doubt the Democratic presidential candidate will get the same treatment.

CNBC:

• IRS says thieves stole tax info from additional 220,000. A computer breach at the IRS in which thieves stole tax information from thousands of taxpayers is much bigger than the agency originally disclosed. An additional 220,000 potential victims had information stolen from an IRS website as part of a sophisticated scheme to use stolen identities to claim fraudulent tax refunds, the IRS said Monday. The revelation more than doubles the total number of potential victims, to 334,000.

• US pork demand climbs as big pig herd pressures prices. Two years after a devastating swine virus killed nearly 10 percent of U.S. hogs, farmers who built up herds to compensate are faced with a sober realization: they've produced too much bacon.

Zero Hedge: 

• 8 Reasons Why The Telegraph Thinks The Market Doomsday Clock Is One Minute To Midnight. (graph)

• What Happens If The Energy Multiple Mean Reverts. (graph)

• Spot The Odd One Out. (graph)

• The Dallas Fed's New President Was Until Recently A Vice-Chairman Of This FDIC Insured Hedge Fund.

• Is The 'Dumb' Money Doing Something Smart? (graph)

• Turkey Declares Curfew In Latest Wartime Escalation, Lira In Record Plunge On More Government Turmoil. 

• Why Everyone Is So Nervous About What China Does Next, In One Chart. (graph)

• Homebuilder Confidence Jumps To 10 Year Highs As Lumber Prices, New Home Sales Slump. (graph)

• Funds For Fracking Finally Dry Up: One Last Hail Mary Pass Remains. (graph)

• Poison Rain Feared In Tianjin As Death Toll Rumored At 1,400.

• Empire Fed Collapses To Six Year Lows As New Orders Signal Recession Imminent. (graph)

Business Insider: 

• DAVID KOTOK: Oil could fall to $15.

• A strategic Ukrainian city was just the center of an intense artillery duel.

• China's currency devaluation could put as many as 640,000 US jobs at risk.

• SocGen: Investors are trading like we're 'already in a bear market'.

• Profits aren't actually growing — companies are just fudging the numbers more than usual. (graph)

• This sample intelligence assessment shows the seriousness of the Hillary Clinton email scandal.

• The 5 most intense risks looming over the global economy right now.

• California's green jobs initiative is failing miserably.

• BARCLAYS: The yuan could fall by another 7% this year.

Telegraph:

• Greek government on its 'last legs' while Angela Merkel faces growing rebellion in Berlin. 'Deep wounds' within ruling Syriza party and growing disquiet in Berlin threaten to derail political support for a new €86bn Greek rescue.

Bear Radar

Style Underperformer:

• Large-Cap Value +.05%

Sector Underperformers:

• 1) Oil Service -1.01% 2) I-Banking -.65% 3) Construction -.59%

Stocks Falling on Unusual Volume:

• EFOI, EL, ICLR, BIP, TFM, CSTE, ACM, BAP, LXFT, BUD, HOLI, BRS, TISI, PCTY, UEPS, AGII, RDY, ARG, KKR, INGN, CPA, BHP, TCBI, CVX and SWIR

Stocks With Unusual Put Option Activity:

• 1) V 2) WMT 3) ADBE 4) MMM 5) XLY
  

Stocks With Most Negative News Mentions:

• 1) TFM 2) NTAP 3) X 4) MU 5) PBR
  

Charts:

• ETFs Falling on Unusual Volume

• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer:

• Small-Cap Growth +.45%

Sector Outperformers:

• 1) Gold & Silver +2.89% 2) HMOs +1.73% 3) Telecom +1.47%
  

Stocks Rising on Unusual Volume:

• ZU, PRXL, PAYC, MBLY, IPHI, AAVL, WMB, KPTI and ITEK

Stocks With Unusual Call Option Activity:

• 1) XLNX 2) ABBV 3) WMB 4) S 5) RDN
  

Stocks With Most Positive News Mentions:

• 1) TSLA 2) JCP 3) ZU 4) JASO 5) DISH
  

Charts:

• ETFs Rising on Unusual Volume 

• Stocks Rising on Unusual Volume

Morning Market Internals

NYSE Composite Index:

• Volume Running 17.2% Below 100-day average
• 7 Sectors Rising, 3 Sectors Declining
• 50.4% of Issues Advancing, 46.4% Declining
• 65 New 52-Week Highs, 127 New Lows
• 39.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 42.3
• Vix 13.3
• Total Put/Call 1.0
• TRIN/Arms .69

Monday Watch

Today's Headlines 

Bloomberg:

• Morgan Stanley's Fragile Five Swells to Troubled 10 in Selloff. Forget the “Fragile Five.” These days, strategists at Morgan Stanley are worried about what could be called the “Troubled Ten.” That’s how many nations they say are particularly at risk since China devalued the yuan. While the analysts haven’t used the term themselves, it’s as good a description as any for the currencies -- from the Brazilian real to Peru’s sol and South Korea’s won -- which have trading ties making them susceptible to a slowdown in the world’s second-biggest economy. “It’s all about vulnerability,” said Hans Redeker, the London-based global head of foreign-exchange strategy at Morgan Stanley. “Major victims of the policy change this time are currencies of countries with high export exposure and export competitiveness with China.”

• China GDP Slower Than Official Data Helps Explain Stimulus Moves. China’s economy is growing more slowly than official data suggests and below potential, a Bloomberg survey indicates, helping explain why policy makers have stepped up stimulus and the move to boost exports with a weaker yuan. The economy expanded 6.3 percent in the first half, compared to the officially reported 7 percent, according to the median estimate of 11 economists surveyed last week. For the full year, a 6.6 percent pace was the median forecast of respondents, who were asked to nominate real growth rates, not what they expect the official data to show.   

• Japan’s Economy Contracts as Consumption, Investment Decline. Japan’s economy contracted last quarter as consumers and businesses cut spending and exports tumbled, putting pressure on the prime minister to return his focus to Abenomics. Gross domestic product fell an annualized 1.6 percent from January-March, ending two quarters of growth, the Cabinet Office said on Monday. The median estimate in a Bloomberg survey was for a 1.8 percent drop. 

• Won Drops as Foreigners Sell Korean Equities Amid China Concern. The won fell as global funds pulled money from South Korean equities on concern China’s economic slowdown and currency devaluation will affect its trade partners. Foreigners were set to sell more local shares than they will buy for the eighth day, a run that’s resulted net outflows of more than $750 million this month. The Bank of Korea is due to hold a meeting Monday to discuss recent developments in China. South Korea will strengthen monitoring of capital flows and of China’s economy, the nation’s biggest export market, the Finance Ministry said in statement Thursday. The won declined 0.7 percent from Aug. 13 to 1,182.22 a dollar as of 10:31 a.m. in Seoul, prices from local banks compiled by Bloomberg show.

• Soros-Like Attack on Malaysian Ringgit Revives Memories of ’98. The ringgit’s steepest slide since 1998 is evoking memories of the clash between then-Prime Minister Mahathir Mohamad and hedge-fund manager George Soros. The currency slid 3.8 percent against the dollar last week as central bank Governor Zeti Akhtar Aziz said Thursday foreign-exchange reserves will need to be rebuilt after they fell below $100 billion for the first time since 2010. She ruled out introducing a currency peg or capital controls, the solutions Malaysia turned to 17 years ago when faced with a tumbling exchange rate. Mahathir blamed foreign investors for the demise of the ringgit and labeled Soros a “moron” for his part in it. “The fallout is reviving memories of hedge-fund attacks in the 1997/98 crisis,” Chua Hak Bin, an economist at Bank of America Merrill Lynch in Singapore, said Friday in an interview. “We don’t think capital controls are likely, but cannot rule out the risk given the rapid depletion of foreign reserves.” 

• Euro-Area Outlook Dims for Economists as QE Impact Falls Short. Mario Draghi’s trillion-euro boost for the euro area isn’t proving sufficient to lift economists’ confidence in the region’s recovery. Barely a quarter of the respondents in a Bloomberg survey see the currency bloc’s outlook improving in the short term. That’s the lowest level since the European Central Bank started its stimulus program to buy 60 billion euros ($67 billion) a month of debt through September next year. The ECB has brought record-low borrowing costs, a flood of cash and an export-boosting currency drop to the euro area, yet economic growth unexpectedly slowed last quarter. Central bank policy makers have already expressed disappointment over the pace of the recovery and pledged to do more if needed, leaving some economists debating whether they’ll act. 

• Egypt Stocks Top Mideast Slump on Brotherhood Probe, Oil Drop. Egypt’s stocks led declines in Arab markets after the government froze assets of a company chairman with alleged ties to the Muslim Brotherhood and oil remained below $50 a barrel. Saudi equities also declined. Egypt’s EGX 30 Index declined 3.2 percent, the most in six weeks, to 7,625.76 at the close in Cairo. Juhayna Food Industries tumbled 7.5 percent and Talaat Moustafa Group Holding lost 5.2 percent. In Saudi Arabia, the Tadawul All Share Index decreased 2.5 percent, led by Jabal Omar Development Co.

• Asian Stocks Follow U.S Shares Higher as Japan Climbs After GDP. Asian stocks rose, tracking an advance in U.S. equities, as Japanese shares gained after data showed the economy contracted less than expected. The MSCI Asia-Pacific Index climbed 0.1 percent to 138.43 as of 9:01 a.m. in Tokyo after the measure sank 2 percent last week for a fourth weekly decline. 

• Iron Ore Rally Seen Overdone by ANZ as China’s Steel Demand Sags. The recent rally in iron ore is unlikely to be sustained, according to Australia & New Zealand Banking Group Ltd., which highlighted the risk of losses after prices capped the longest run of weekly gains in a year. While shipments to China were disrupted last week after explosions at Tianjin’s port, weak steel demand suggests price gains are overdone, the bank said in a report on Monday. Ore with 62 percent delivered to Qingdao rose 0.6 percent to $56.74 a dry metric ton last week to post a fifth straight climb, Metal Bulletin Ltd. data showed. The price hit $57.02 on Thursday, the highest since July 1, after the blasts late on Wednesday. 

• Hedge Funds Resume Flight From Oil as Prices Sink to 6-Year Lows. After showing some short-lived optimism, hedge funds resumed their retreat from the U.S. oil market, cutting bullish positions for the seventh time in eight weeks as prices dropped to the lowest since 2009. Money managers’ net-long position in West Texas Intermediate crude declined 11 percent in the week ended Aug. 11, U.S. Commodity Futures Trading Commission data show. Short positions climbed to the highest level since March, a signal speculators see prices continuing to fall.

• OPEC May Boost Oil Output to a Record. (video)

• Yuan Drop Leads India to Mull Steel Anti-Dumping Duties. India said it’s being forced to consider steel safeguard duties and more anti-dumping curbs as the yuan’s devaluation threatens to stoke surging Chinese shipments. A steel import-tax increase earlier this month may not be enough of a deterrence, Financial Services Secretary Hasmukh Adhia said. Adhia has seen the steel industry contribute to elevated bad debt in India, in part as producers struggle to compete with imports from nations such as China and Russia.

Wall Street Journal:

• China’s Woes Echo in U.S. Earnings. In quarterly conference calls, U.S. executives recited a litany of pain resulting from a slowdown in China’s economy.

• A Global Recession May Be Brewing in China. Beijing’s desperate attempts to hit its arbitrary 7% growth target are having world-wide repercussions. As the global economy enters the seventh year of a sluggish recovery, it’s time to start asking when the world will face its next downturn—and what will drive it. Over the past 50 years there has been a global recession once every eight years, on average, so the next one may be brewing. When exactly it will come is hard to call. But the policy panic in Beijing over its currency and the fall of its stock market suggest that the next global recession likely will be “made in China.” This would represent a major break from... 

• Bad Loans Impede India’s Economic Growth. Loans in default at India banks stand at 4.3%. Mounting bad-loan ratios at Indian banks are a sign the country’s economy isn’t doing nearly as well as recent rosy output-growth figures suggest.

• Trump’s Defective Economics. The candidate is promoting currency devaluation—he should ask Argentina and Brazil how that worked out.

• Obama Targets Financial Advisers. Labor’s new fiduciary rule will limit advice for middle-class savers.

Barron's:

• China’s Yuan Could Fall 10% or More. Up & Down Wall Street: History suggests that China’s currency devaluation won’t be a one-time move. More trouble ahead for multinational consumer stocks.

Fox News:

• Gowdy: Clinton to testify in October before Benghazi panel, all questions ‘asked’ and ‘answered’. (video) South Carolina Rep. Trey Gowdy said Sunday that Hillary Clinton will indeed testify Oct. 22 about her activities as secretary of state at the time of the Benghazi attacks but suggested that her demand for a one-time appearance will result in a long, hard day.

MarketWatch.com:

• Why gas prices are rising as oil falls to 6-year lows.

CNBC:

• Rents rise to ‘crazy’ levels: Zillow. It's not your imagination. Rent really is too high. The cost of renting a home in the U.S. has risen to its least affordable levels ever, taking up a record proportion of income in most major cities, according to a study from property website Zillow.

Zero Hedge:

• Yuan Devaluation Sparks Biggest Crash In US Corporate Bonds Since Lehman. (pic)

• "They Have To Go"; Trump Vows To Deport All Illegal Immigrants.

• Billionaire Stanley Drucknemiller Loads Up On Gold, Makes It His Largest Position For First Time Ever.

• American Malls In Meltdown. (graph)

• Goldman's 4 Reasons Why The S&P Will Remain Unchanged For The Rest Of 2015. (graph)

• Asian Currency Crisis Continues As China Holds, Malaysia Folds, & Japan Heads For Quintuple Dip Recession. (graph)

• New Snowden Leak Exposes AT&T's "Extreme Willingness To Help" NSA Spy On Americans.

• Bouts Of Extreme Volatility Have "Little Obvious Explanation," Citi Warns. (graph)

• Goldman Weighs In On America's Pension Ponzi: Contributions Must Rise $100 Billion Per Year. (graph)

• North Korea Threatens To "Invade USA," Use Weapons "Unknown To The World".

• It's Not The Economy Stupid: It's The Fed.

• The HFT "Treasure Map" - Presenting The Rigged Stock Market's Full "Latency Arbitrage" In One Chart.

• Hundreds Of Thousands Take To The Streets In Brazil Demanding President's Impeachment. (pic)

• China's Debt Load To Hit 250% Of GDP In 5 Years, IMF Says. (graph)

• The Crisis Is Spreading: China, Australia, Brazil, Canada, Sweden... (graph)

Business Insider:

• 'Everybody is waiting for doomsday' in Texas.

• Star Wars is about to take over Disney theme parks — Here are all of the new attractions being planned.

• 7 reasons why Hillary's email problems won't go away.

• The investigation into Hillary Clinton's private email is being run out of FBI headquarters — and that's unusual. The FBI is seeking to determine who at the State Department passed highly classified information to Clinton's account in 2009 and 2011. Given the FBI involvement, the Clinton campaign is getting nervous as the investigation intensifies. “They’re worried about it,” a longtime Clinton adviser and confidant told The Washington Post. “They don’t know where it goes. That’s the problem.”

• The world is already weakening one of the key 'checks' on the Iran deal.

• The scariest reason China devalued the yuan, in one chart. (graph)

• 'Looming unrest in the oil sector' is rattling Central Asia's biggest country.

• Pump-and-dump frauds are turning to Twitter, and these companies are out to spot them.

• The NSA is asking your favorite apps how to spy on you better.

Financial Times:

• Problems for China’s economy extend far beyond currency. The sudden fall in China’s currency last week spurred a lively debate about whether the move was a victory for market reform or a competitive devaluation designed to shore up flagging exports. But even those who believe the 3 per cent drop was aimed at exporters acknowledge that a weaker renminbi by itself is radically insufficient to cope with the challenges facing China’s economy. 

• Anxiety over US student debt heightens. This traditionally staid corner of the bond universe has long attracted investors with a low tolerance for risk. Despite minimal expectation of losses due to the underlying loans being backed by the US government, sharp downgrades could spur an exit from the sector by investors banned from buying low-rated debt. The US student loan market has expanded significantly in recent years, driven by rising tuition costs and a clamour for a university education by millennials in the wake of the financial crisis.

• TD Bank warns of impact of oil’s fall on Canadian economy. The head of Toronto-Dominion Bank has warned of the chilling effects of lower oil prices on the Canadian economy, which could check the lender’s ambitions in the US, its most important growth market. The Toronto-based bank, the country’s joint largest lender by assets alongside Royal Bank of Canada, has expanded more quickly in the US than any other big foreign bank since the crisis. But in an interview with the Financial Times, president and chief executive Bharat Masrani said the latest drop in the oil price could hurt consumption in certain parts of Canada that are highly reliant on energy exports — and by extension, affect the bank’s earnings power.

Telegraph:

• Eurozone ministers: Greek debt relief won't be discussed until October. Michel Sapin, France's finance minister, says debt relief would provide 'oxygen' for growth but Germany insists International Monetary Fund participation in a debt package remains a dealbreaker.

China Digital Times:

• He Xiaoxin: How Far Can I Go? And How Much Can I Do? (pics) When I first set eyes on it, it startled me. This, this must be a movie! A Hollywood sci-fi wouldn’t be this shocking. This is like hell on earth. I could only think of one word—Chernobyl!

Night Trading

• Asian indices are -1.0% to +.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 117.25 +.75 basis point.

• Asia Pacific Sovereign CDS Index 70.25 unch.

• S&P 500 futures -.09%.

• NASDAQ 100 futures -.02%.

Morning Preview Links

Earnings of Note

Company/Estimate 

• (EL)/.34

• (A)/.41

• (MTZ)/.11

• (URBN)/.49

Economic Releases

8:30 am EST

• Empire Manufacturing for August is estimated to rise to 4.5 versus 3.86 in July.

10:00 am EST

• The NAHB Housing Market Index for August is estimated to rise to 61.0 versus 60.0 in July.

4:00 pm EST

• Net Long-Term TIC Flows for June.

Upcoming Splits

• None of note

Other Potential Market Movers

• The China Property Price reports and the Eurozone Trade Balance report could also impact trading today.

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

Weekly Outlook

Week Ahead by Bloomberg. 

Wall St. Week Ahead by Reuters.

Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week modestly lower on Fed rate hike worries, China bubble-bursting fears, Asian currency concerns, commodity weakness, technical selling and European/Emerging Markets/US High-Yield debt angst. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 50% net long heading into the week.