Bull Radar

Style Outperformer:

• Small-Cap Growth +.53%

Sector Outperformers: 

• 1) Airlines +1.52% 2) Biotech +1.29% 3) Hospitals +1.12%

Stocks Rising on Unusual Volume: 

• NUAN, ARG, MAT, FOSL, SYT, SBH and FTK

Stocks With Unusual Call Option Activity: 

• 1) MAT 2) NUAN 3) URBN 4) CTL 5) GNC

Stocks With Most Positive News Mentions: 

• 1) NUAN 2) TJX 3) LMT 4) TGT 5) WMT

Charts: 

• ETFs Rising on Unusual Volume 
• Stocks Rising on Unusual Volume

Morning Market Internals

NYSE Composite Index:

• Volume Running +19.3% Above 100-Day Average
• 7 Sectors Rising, 3 Sectors Declining
• 50.6% of Issues Advancing, 46.7% Declining
• 17 New 52-Week Highs, 55 New Lows
• 32.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 40.9
• Vix 17.6
• Total Put/Call .69
• TRIN/Arms .96

Tuesday Watch

Evening Headlines
Bloomberg: 

• The Global Economic Cost of Terrorism Is Now at Its Highest Since 9/11. Nearly 10 times as many killed in attacks than 15 years ago. In the wake of Friday's massacre in Paris, a new report says the world is paying the highest price for terrorism since the 2001 attack on New York's Twin Towers. In 2014, acts of terror cost the world $52.9 billion — roughly the size of Bulgaria's entire annual gross domestic product — compared with $51.51 billion in the aftermath of Sept. 11, according to the latest annual Global Terrorism Index by the Institute for Economics and Peace, which has been collecting data since 1997.
  
• `Devastating' Blow for Abe Seen in Japan Inc.'s Investment Cuts. (video) Japan Inc. is looking like it’s not holding up to its end of the Abenomics bargain. Since Prime Minister Shinzo Abe took office almost three years ago, he’s been championing yen-weakening policies that pushed corporate earnings to record highs in the hopes that companies will boost spending and workers’ paychecks. Yet the latest figures show falling business investments helped push Japan into its second recession under Abe and wage growth remains stagnant.   
• Dollar Climbs to 7-Month Peak as Hedge Funds Boost Bullish Bets. The dollar climbed to a seven-month high as hedge funds increased wagers the currency will strengthen amid speculation the Federal Reserve will raise interest rates as soon as next month.Hedge funds and other large speculators boosted bets on dollar gains versus eight major currencies in the last three weeks, in the biggest jump since March 2013, data from the Commodity Futures Trading Commission showed.
• Asia Stocks Follow U.S. and Europe Shares Higher as Yen Weakens. Asian stocks rose from an almost six-week low, following gains in U.S. and European shares, as a weakening yen boosted Japanese equities and concern eased from the attacks in Paris. The MSCI Asia Pacific Index added 0.6 percent to 131.31 as of 9:00 a.m. in Tokyo after closing Monday at the lowest since Oct. 6.
• Oil Approaching $40 Deepens Investor Pessimism on Recovery. Hedge funds have turned more pessimistic on oil as prices flirted with $40 a barrel for the first time since August."The speculators keep trying to pick the bottom and keep getting burned," Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by phone. Money managers’ short bets in West Texas Intermediate crude surged 21 percent in the week ended Nov. 10, according to data from the Commodity Futures Trading Commission. The net-long position dropped 16 percent.
• Copper Extends Retreat to Six-Year Low Amid Weak Chinese Demand. Copper extended its decline to the lowest level in more than six years on signs of weak demand in China, the biggest consumer, and as the dollar traded near the strongest level since at least 2004. The metal fell as much as 0.3 percent to $4,678 a metric ton on the London Metal Exchange before trading at $4,695 by 9:47 a.m. in Singapore, while futures slumped in Shanghai. Codelco, the world’s largest producer, has cut the premium it will charge buyers in China next year by the most since the global financial crisis, a further sign that demand is slowing.
• Steel Is the Poster Child For Oversupplied Commodity Markets, and It's in Shambles. Output has far exceeded demand.  The collapse in oil prices following the shale revolution has stolen the limelight for investors mulling the end of the commodities supercycle. But the real "poster child for problems in commodities markets is perhaps the global steel industry," according to Macquarie analysts led by Colin Hamilton, the firm's global head of commodities research. The front-month contract for U.S. hot-rolled coil steel futures traded on the New York Mercantile Exchange is down nearly 40 percent year-over-year: 
• Here's a Sign the Treasury Market Is Ready for the Fed to Act. Treasury volatility tumbled to the lowest level this year, signaling there’s a growing consensus that the Federal Reserve will raise interest rates at its December meeting and forgo the delays that marked its previous two sessions. The Bank of America Merrill Lynch MOVE Index, which measures price swings in U.S. debt, fell to 67.69 basis points on Monday, the least since Dec. 26. Central bank officials stressed last week that policy should be tightened gradually after interest rates are increased for the first time since 2006. New York Fed President William C. Dudley said the conditions for liftoff “could soon be satisfied.”
• NYC Prepares as If It's the Next Terror Target, Bratton Says. (video) New York City’s police department for the first time deployed a special counter-terrorism team of more than 500 officers in the aftermath of the attacks that shook Paris Friday night, Police Commissioner Bill Bratton said Monday. The department has about 1,500 officers -- out of 35,500 -- assigned to combat terrorism. The new, heavily-armed unit is intended to be a rapid-reaction force in the event of a terrorist attack. 
• Billionaire Pickens Energy Fund Loses Half Its Value in Downturn. Billionaire investor T. Boone Pickens reversed course in the third quarter by slimming down his energy holdings as the worst oil market downturn in decades drags on longer than many expected. The value of energy holdings in his Dallas-based TBP Investments Management fund fell by more than half in the quarter to $35.6 million, according to data compiled by Bloomberg. The fund exited stakes in 13 companies including smaller oilfield contractors Pioneer Energy Services Corp., C&J Energy Services Ltd. and Patterson-UTI Energy Inc. It also sold off smaller positions in exploration companies Apache Corp. and Occidental Petroleum Corp.

Wall Street Journal:

• Belgian Police Push Manhunt as French Authorities Crack Down on Extremists. Authorities also investigating whether Islamic State-linked suspect in previous plot was involved in Paris attack. Belgian police scoured a Brussels neighborhood for a suspect believed to have been critical to the attacks that rocked Paris and said they were holding two people in connection with the planning, as authorities in Paris announced raids of dozens of homes in a new crackdown on radical Islamists. Authorities in Belgium and France are also investigating whether another man—a Belgian named Abdelhamid Abaaoud, who is suspected of being the mastermind behind a foiled Belgian terrorist plot in January—was involved in Friday’s onslaught, officials familiar with the probe said.
• Pressure Grows for Global Effort Against Islamic State After Paris Attacks. France backs single alliance with U.S., Russia to fight extremists. World leaders pledged to seize on the Paris attacks to deepen their involvement in what looked Monday to be turning into more of a global campaign against the growing threat of Islamic State. President Barack Obama vowed to intensify all elements of his administration’s strategy against Islamic State, calling the terrorist attacks in Paris a “terrible and sickening setback” in the fight against extremism.
• Gambling the World Economy on Climate. The emission-cut pledges will cost $1 trillion a year and avert warming of less than one degree by 2100. The United Nations climate conference in Paris starting Nov. 30 will get under way when most minds in the French capital will still understandably be on the recent terror attacks. But for many of the 40,000 attendees, the goal is to ensure that climate change stays on the global economic agenda for the next 15 years. The Paris conference is the culmination of many such gatherings and is expected to...
• A Syrian Refugee Lesson for Liberals. By failing against jihad, Obama has produced an illiberal backlash. President Obama on Monday assailed the U.S. political backlash against resettling more Syrian refugees, especially Muslims, calling it un-American. Well, maybe he should have thought about that before he decided to do so little in Syria and let Islamic State build a vast terror sanctuary.

Fox News:

• Obama plan for Syrian refugees scrambled by state opposition. (video) The Paris terror attacks may have put a clamp on President Obama's plans to resettle 10,000 Syrian refugees over the next year, as the number of governors saying they won't take them swells. At the same time, top congressional lawmakers are urging the administration to halt the plan. House Homeland Security Committee Chairman Michael McCaul called on Obama to "temporarily suspend the admission of all additional Syrian refugees" pending a "full review," according to a letter obtained by Fox News. The resistance at the state level is coalescing at a rapid clip. So far, governors in at least 16 states have moved to suspend or restrict the refugee resettlement, including Alabama, Arizona, Arkansas, Florida, Georgia,  Illinois, Indiana, Iowa, Louisiana, Massachusetts, Michigan, Mississippi, North Carolina, Ohio, Texas and Wisconsin.  "Given the tragic attacks in Paris and the threats we have already seen, Texas cannot participate in any program that will result in Syrian refugees -- any one of whom could be connected to terrorism -- being resettled in Texas," Texas Gov. Greg Abbott said in a letter to Obama.

CNBC:

• Traders call for the dollar to get even stronger. (video)

Zero Hedge:

• Japan's Problems Will Not Be Solved By More QE, RBS Warns. (graph)
• "What Are The Markets Telling Us" - The Hedge Funds' Favorite Newsletter Explains. (graph)
• "Nothing Makes Sense Anymore" Traders Fear Debt Market Distortions Signal "Something Big Is Brewing". (graph)
• The Fed Will Raise Rates Only Insofar As They Are Irrelevant.
• Obama Says 10,000 "Carefully Vetted" Syrian Refugees Still Headed To The US.
• War Is Bullish: Stocks, Oil Surge Off Paris Panic Lows After Dismal Economic Data. (graph)

Business Insider:

• ISIS wanted to strike beyond its 'caliphate' long before the Paris attacks.
• Without buybacks, there is no earnings per share growth. (graph)
• Jim Chanos sent us 3 charts shooting down the hot new metric China bulls love.
• The world's most accurate Apple analysts think iPhone sales have peaked.
• Obamacare enrollees are reeling from higher deductibles.

Reuters:

• Enbridge cuts 5 percent of workforce in Canada and U.S. Canada's largest pipeline company Enbridge Inc cut 5 percent of its workforce on Monday, a company spokesman said, as low oil prices continued to drag on the North American oil and gas industry.
• Investment banks' revenue set to decline again in 2015 - survey. Revenue at the world's 10 largest investment banks is on course to decline again in 2015 by two percent to $148 billion compared to a year ago, although a strong showing in equities will limit the fall, a survey on Tuesday showed. It follows a weak third quarter, when revenue slipped by 8 percent, the survey by industry analytics firm Coalition showed.
• Urban Outfitters(URBN) falls on weak sales growth, restaurant deal. Apparel retailer Urban Outfitters Inc reported weaker-than-expected comparable sales, piling more pressure on its shares already strained by the surprise purchase of an Italian pizza chain earlier on Monday. Shares of the company fell as much as 10 percent after Urban Outfitters said it would buy the Vetri Family restaurant group, and fell another 10 percent in extended trading after the company reported weak third-quarter results.

Financial Times:

• Emerging markets: Deeper into the red. Companies from Brazil to China are finding it harder to repay loans and raise fresh cash, hampering growth.

Telegraph:

• France swats aside EU budget rules in rearmament blitz. “The security pact takes precedence over the stability pact. France is at war,” said President Hollande.

Evening Recommendations 

• None of note

Night Trading 

• Asian equity indices are +.75% to +1.5% on average.
• Asia Ex-Japan Investment Grade CDS Index 129.5 -2.25 basis points.
• Asia Pacific Sovereign CDS Index 70.5 -1.0 basis point.
• Bloomberg Emerging Markets Currency Index 70.46 -.05%.
• S&P 500 futures +.11%.
• NASDAQ 100 futures +.13%.

Morning Preview Links 

Earnings of Note 
Company/Estimate

• (DKS)/.46
• (HD)/1.32
• (JASO)/.24
• (KLIC)/.17
• (TJX)/.84
• (WMT)/.98
• (JACK)/.65
• (LZB)/.41
• (VIPS)/.12 

Economic Releases
8:30 am EST

• The CPI MoM for October is estimated to rise +.2% versus a -.2% decline in September.
• The CPI Ex Food and Energy MoM for October is estimated to rise +.2% versus a +.2% gain in September.  

9:15 am EST

• Industrial Production for October is estimated to rise +.1% versus a -.2% decline in September.
• Capacity Utilization for October is estimated at 77.5% versus 77.5% in September.
• Manufacturing Production for October is estimated to rise +.2% versus a -.1% decline in September.   

10:00 am EST

• 3Q MBA Mortgage Foreclosures/Delinquencies.
• The NAHB Housing Market Index for November is estimated at 64.0 versus 64.0 in October.
  

4:00 pm EST

• Net Long-Term TIC Flows for September.

Upcoming Splits

• (BOFI) 4-for-1

Other Potential Market Movers

• The Fed's Tarullo speaking, Fed's Powell speaking, UK retail sales report, German Zew Index, US weekly retail sales reports, Morgan Stanley Consumer/Retailing conference, Stifel Healthcare conference, (MDR) analyst day, (RDN) investor day, (SYNA) analyst meeting and the (CAT) analyst day could also impact trading today.

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

Stocks Surging into Final Hour on Central Bank Hopes, Oil Bounce, Short-Covering, Energy/Defense Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 18.49 -7.92%

• Euro/Yen Carry Return Index 137.51 -.36%

• Emerging Markets Currency Volatility(VXY) 10.65 -.46%

• S&P 500 Implied Correlation 55.90 -5.14%

• ISE Sentiment Index 116.0 -1.0%

• Total Put/Call .86 -25.86%

• NYSE Arms .60 -52.73% 

Credit Investor Angst:

• North American Investment Grade CDS Index 84.30 -.71%

• America Energy Sector High-Yield CDS Index 1,244.0 +4.85%

• European Financial Sector CDS Index 75.13 -.49%

• Western Europe Sovereign Debt CDS Index 20.93 +4.83%

• Asia Pacific Sovereign Debt CDS Index 70.80 -.92%

• Emerging Market CDS Index 327.70 -1.72%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.69 -.10%

• 2-Year Swap Spread 8.75 -.75 basis point

• TED Spread 25.25 +2.0 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -40.25 -1.0 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.49 -.03%
• 3-Month T-Bill Yield .10% -1.0 basis point

• Yield Curve 142.0 unch.

• China Import Iron Ore Spot $47.74/Metric Tonne -.83%

• Citi US Economic Surprise Index 1.5 +1.5 points

• Citi Eurozone Economic Surprise Index 24.9 +2.0 points

• Citi Emerging Markets Economic Surprise Index -.1 +2.3 points

• 10-Year TIPS Spread 1.54 -2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 2.89 -.02

Overseas Futures:

• Nikkei 225 Futures: Indicating +297 open in Japan 
• China A50 Futures: Indicating -83 open in China

• DAX Futures: Indicating +78 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech/medical/retail sector longs

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 50% Net Long

Today's Headlines

Bloomberg:

• Hollande Calls for United Anti-Terror Front as Police Crack Down. (video) French President Francois Hollande, moving to reassure a nation stunned by its second wave of deadly attacks this year, vowed to increase spending on security, limit constitutional protections and win a war against Islamic terrorism. Last week’s assaults in Paris, which killed at least 129 people, were “planned in Syria, organized in Belgium, and carried out in France,” Hollande told a rare joint session of parliament in Versailles, just outside the capital. He called for a global effort to destroy Islamic State’s base of operations, which “have become the biggest terrorist factory the world has ever known.” The French leader spoke hours after police arrested 23 suspected extremists in a nationwide crackdown and jets dropped bombs on Islamic State’s de-facto capital in Raqqa, Syria. In Belgium, home to most of the assailants who carried out Friday’s violence, police in balaclavas and body armor raided residences in the immigrant-heavy Molenbeek district of Brussels. Echoing George W. Bush after Sept. 11, 2001, Hollande urged French citizens to “keep on working, going out, living.” Hollande said he was ready to breach European Union budget rules to spend whatever is necessary to secure the nation. “The security pact is more important than the stability pact,” he said after promising more money for intelligence services, more police officers and no cuts to the army staff. He said also he will soon propose constitutional revisions to bolster the president’s emergency powers.
• Paris Terror Threatens Recovery as Tourists Find Doors Shut. (video) With the Eiffel Tower, the Louvre and many stores shuttered, Friday’s carnage in Paris risks chilling France’s nascent economic recovery as tourists fret about safety and some executives fear enduring implications for business. What should have been a busy weekend of shopping and sightseeing in the run-up to the holiday season turned eerily quiet after the attacks. A major photography fair closed its doors; U2 and the Foo Fighters scrapped planned Paris concerts; The Eiffel Tower remains closed until further notice. While the disruptions will be temporary, France can scarcely afford any significant interruption in the stream of visitors entering the country. It is the world’s most-popular tourist destination, with foreigners spending over 42 billion euros ($45.3 billion) in 2013, the Ministry of Foreign Affairs says. “Everyone seems to be on the brink of crying,” said Ian Plaistowe, a 62-year-old from Yorkshire, England, visiting Paris for a long weekend. “We just have to look at the places we wanted to see from the outside.”
• Lending by China's Biggest Banks Falls for First Time Since '09. The loans outstanding of China’s four biggest banks declined for the first time since at least 2009, adding to warning signs for a tepid economy. Total loans by the four lenders, including Industrial & Commercial Bank of China Ltd., amounted to 35.7 trillion yuan ($5.6 trillion) at the end of October, down 65.6 billion yuan from a month earlier. That’s according to data released Sunday by the People’s Bank of China. “Credit growth is slowing because they are cautious about the economic outlook and asset quality,” said Chen Shujin, an analyst at DBS Vickers Hong Kong Ltd. The banks may also have slowed lending because they’re close to meeting full-year loan targets, the analyst said. Chinese banks’ troubled loans increased to almost 4 trillion yuan by the end of September, according to data released on Thursday night by the China Banking Regulatory Commission. Their profit growth slumped to 2 percent in the first nine months from 13 percent a year earlier.  
• Brazil Analysts See Double-Digit CPI for First Time in 12 Years. Brazil analysts forecast inflation will exceed the 10 percent threshold by the end of this year for the first time in 12 years as the central bank keeps the benchmark rate on hold. Inflation will accelerate to 10.04 percent by year-end, up from 9.99 percent a week earlier, according to the Nov. 13 central bank survey of about 100 analysts. Consumer price will increase 6.5 percent next year, at the top of the central bank’s target range of 2.5 percent to 6.5 percent.
• Nomura: The Euro's Parity With the Dollar Might Be Just Around the Corner.   
• Paris Attacks Deal Fresh Blow to Luxury as Outlook Dims. One of the few shining lights for a struggling luxury-goods industry just dimmed. With demand for lavish clothing and accessories slowing from China to the U.S., brands such as Louis Vuitton, Gucci and Hermes have at least been able to count on a flow of free-spending tourists to Europe’s major cities. Friday’s attacks on Paris may change that. “It’s a concern for all business,” said Fabrizio Ferraro, professor of strategic management at IESE Business School in Barcelona. “The key question is how big an impact these events will have on tourist flows. Consumption in the industry in Europe depends on tourism.”
• Travel Stocks Hit Hard Following Paris Attacks. (video)
• French Stocks Resilient After Attacks With Market Little Changed. (video) European stock markets showed resilience after Paris suffered the region’s worst terror attacks in more than a decade, with French equities paring declines. The CAC 40 Index closed little changed, trimming a slide of as much as 1.2 percent and briefly climbing 0.3 percent. Energy producers rallied in Europe, offsetting declines in travel shares. That sent the Stoxx Europe 600 Index up 0.3 percent, erasing an earlier drop of as much as 0.8 percent.
• OPEC Export Price Falls Below $40 for First Time Since 2009. (video) The average price of crude sold by OPEC fell below $40 a barrel for the first time 2009, underscoring the financial cost of the group’s strategy to defend its market share. The daily OPEC Basket Price fell to $39.21 a barrel on Nov. 13, according to an e-mail on Monday from the organization’s secretariat in Vienna. The basket, an average of export grades from each of the group’s 12 members, typically trades below international oil futures as some OPEC nations pump denser or higher-sulfur crude that’s less profitable to refine.
• Copper Falls to Six-Year Low After Paris Attack, Codelco Fee Cut. Copper fell to a six-year low as commodities retreated and investors bought haven assets such as gold following the terror attacks in Paris. Signs of weak demand for metals in China, the world’s biggest consumer, also hurt prices. The violence in the French capital renewed worries about political and economic risk, prompting investors to buy assets such as gold, U.S. Treasuries and European government bonds. Concerns metals demand is ebbing deepened as Codelco, the biggest copper producer, cut its surcharge for sales to China by 26 percent next year, according to two buyers. The reduction highlighted waning consumption in the Asian country. “You have a confluence of economic and political influences at work,” Michael Turek, the head of base metals at BGC Partners Inc. in New York, said in an e-mail. “Obviously the tragic developments in Paris have caused a capital flight out of metal and into safety. Secondly, collapsing physical premiums for metal being imported into China really underscores how anemic demand is there.” Copper futures for December delivery dropped 2.6 percent to $2.111 a pound at 11:02 a.m. on the Comex in New York, after falling to $2.1095, the lowest since May 2009.
• Ramsey the Bear, Who Called S&P 500 Decline, Sends Warning. Doug Ramsey, whose bearish research foreshadowed the U.S. stock market’s first correction since 2011, says the rebound that has lifted equities since August doesn’t mean the mispricings that drove the rout have gone away. If anything they’re worse, according to the chief investment officer of Leuthold Weeden Capital Management LLC, who says valuations are higher than when the selloff began because of deteriorating revenue and profits. The Standard & Poor’s 500 Index is trading for 1.8 times sales, about where it was in August, while industrial stocks last week were priced at 20 times earnings, the most in more than a decade. 
• Cliff Asness Says Hedge Fund Managers Don't `Hedge' Enough. Cliff Asness, co-founder and managing principal of investment firm AQR Capital Management, said hedge funds don’t protect enough against potential market losses and reiterated that the industry charges clients too much. “They don’t hedge enough,” Asness said in a "Bloomberg " television interview with Stephanie Ruhle and David Westin on Monday. “Over time, what they are supposed to do is hedge market risk. And they are supposed to do it at a reasonable price.”
• Clinton's Wall Street Donors Say More Than 9/11 Built Their Bond. The venture capitalist and Hillary Clinton bundler Alan Patricof was sitting in the audience at Saturday’s Democratic debate in Iowa when the former New York senator started raising her voice and pointing with her right hand. "I represented New York on 9/11 when we were attacked,” Clinton said, after rival presidential candidate Bernie Sanders criticized her ties to bankers. "Where were we attacked? We were attacked in downtown Manhattan where Wall Street is. I did spend a whole lot of time and effort helping them rebuild. That was good for New York. It was good for the economy. And it was a way to rebuke the terrorists who had attacked our country.” The line triggered rage on Twitter, spite from her rivals and surprise among allies. Patricof, co-founder and managing director of Greycroft LLC, wasn’t sure what to make of Clinton’s suggestion that she has a good relationship with the financial industry because of terrorism. “I was confused,” he said Sunday. “I didn’t quite understand.” The way he and Clinton’s other Wall Street supporters see it, the connections that bind them are long, deep and nothing to be embarrassed about.
• Clovis Oncology(CLVS) Falls 73 Percent After FDA Asks for More Data on Cancer Drug.
• SunEdison(SUNE) - Now with $739 Million in Extra Recourse Debt? Analysts debate solar-powered subordination. 
• Dillard's(DDS) Becomes Latest Victim of U.S. Department-Store Slump. Dillard’s Inc. tumbled as much as 12 percent in New York trading after posting disappointing earnings, adding to concern that the U.S. department-store industry is mired in a slump.

Wall Street Journal:

• Paris Attacks: Latest Updates.

Fox News:

• Obama: Paris terror rampage a ‘setback’. (video) Three days after teams of Islamic State terrorists brazenly carried out raids across Paris that left 129 people dead, President Obama labeled the slaughter a "setback" in responding to questions about his policies. "There will be setbacks and there will be successes. The terrible events in Paris were obviously a terrible and sickening setback," Obama said Monday.
• Live blog: Terror attack in Paris.

CNBC:

• 'Mega-glut' for oil could send prices to $37: Pro. (video)
• Manufacturing is clearly in recession. (video) Manufacturing and corporate profits are both in recession mode, even though the rest of the U.S. economy continues to limp along.

Zero Hedge:

• Texas, Five Other States Refuse To Accept Syrian Refugees.
• Algos Gone Wild - WTI Crude Storms Higher Having Run Low Stops. (graph)
• "The Next Big Move In Stocks Is Down" August's Crash-Whisperer Warns "Nothing Has Been Solved". (graph)
• The Last Time Bond Bears Were This Short, Treasury Yields Collapsed. (graph)
• A New Low? Hillary Clinton Claims 9/11 Is The Reason She's Owned By Wall Street.
• ECB's Coeure Sees "Little Bubbles". (graph)
• Only These Five Companies Matter For The Direction Of The Market. (graph)
• Empire Fed Misses (Again), Contracts For 4th Straight Month As Average Workweek Collapses. (graph)
• Marriott Buys Starwood At A 4% Discount, Creates World's Largest Hotel "Take-Under".

Business Insider:

• French reporter to Obama: Isn't it time to change your ISIS strategy?
• The US is attacking ISIS oil trucks in Syria for the first time.
• Wall Street China has become a terrifying place.
• This is the 'mastermind' behind the Paris attack, authorities say. (video)
• TROUBLING: Oil and gas companies are edging toward default.
• ISIS is tightening its grip in Libya.

@Breaking911: 

•  WATCH: Islamic State Threatens Further Attacks in New Video. (video) "Then we swear that we will strike America at its centre in Washington."

Washington Post:

• The Islamic State’s suspected inroads into America. (map)

Reuters:

• CIA chief warns Islamic State may have other attacks ready. CIA Director John Brennan on Monday warned that the attacks in Paris were not a “one-off event” and that the Islamic State may already be preparing similar operations. “I would anticipate that this is not the only operation that ISIL has in the pipeline,” Brennan said in a speech to a policy institute, using an acronym for the Islamic State. “And security intelligence services right now in Europe and other places are working feverishly to see what else they can do in terms of uncovering it.”

MACRO Business:

• Housing sentiment is crashing. (graph) The Westpac Melbourne Institute House Price Expectations Index also fell further, down 7.9% in Nov to be materially below its long run average.

Xinhua:

• China Warns of Risks From High-Yielding Schemes. Schemes with promises of high yields under the name of "financial mutual-aid" appeared in many regions recently, citing a warning note issued by regulators including PBOC and CBRC.

Caixin:

• China Has Unprecedented Difficulty to Stabilize Growth. China faces dilemma of effective monetary policy and ensuring financial stability, Pan Hongsheng, official at PBOC's monetary policy debt., writes in Caixin. China faces severe challenge in preventing regional and systemic financial risks, he said.

Bear Radar

Style Underperformer: 

• Small-Cap Growth -.24%

Sector Underperformers: 

• 1) Airlines -1.43% 2) Biotech -.85% 3) Road & Rail -.32%

Stocks Falling on Unusual Volume:

• CLVS, VIPS, HOT, DDS, FOSL, URBN, CRF, HLT, RDY, PCLN, IILG, CLM, AWAY, FIVE, PRTY, DKS, UVE, NCLH, AMZN, EXPE, FB, IMGN, CIB, BPMC and EA

Stocks With Unusual Put Option Activity: 

• 1) SHAK 2) KBH 3) XLV 4) XME 5) LOW

Stocks With Most Negative News Mentions: 

• 1) SUNE 2) PCLN 3) CLVS 4) CNHI 5) BBY

Charts:

• ETFs Falling on Unusual Volume 
• Stocks Falling on Unusual Volume