Stocks Reversing Slightly Lower into Final Hour on Terrorism Fears, Oil Decline, Earnings Outlook Worries, Commodity/Gaming Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 19.09 +5.12%

• Euro/Yen Carry Return Index 137.27 -.18%

• Emerging Markets Currency Volatility(VXY) 10.54 -1.13%

• S&P 500 Implied Correlation 57.52 -.66%

• ISE Sentiment Index 88.0 +10.0%

• Total Put/Call .78 -9.30%

• NYSE Arms 1.20 +136.30% 

Credit Investor Angst:

• North American Investment Grade CDS Index 83.74 +2.0%

• America Energy Sector High-Yield CDS Index 1,236.0 -.3%

• European Financial Sector CDS Index 70.25 -6.5%

• Western Europe Sovereign Debt CDS Index 20.12 -3.85%

• Asia Pacific Sovereign Debt CDS Index 69.14 -2.03%

• Emerging Market CDS Index 322.79 -.99%
  

• iBoxx Offshore RMB China Corporate High Yield Index 123.83 +.11%

• 2-Year Swap Spread 9.25 +.5 basis point

• TED Spread 24.75 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -42.5 -2.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 70.53 +.06%
• 3-Month T-Bill Yield .12% +2.0 basis points

• Yield Curve 1420.0 -2.0 basis points

• China Import Iron Ore Spot $45.58/Metric Tonne -4.52%

• Citi US Economic Surprise Index -2.8 -4.3 points

• Citi Eurozone Economic Surprise Index 26.5 +1.6 points

• Citi Emerging Markets Economic Surprise Index 1.0 +1.1 points

• 10-Year TIPS Spread 1.56 +2.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 2.79 -.10

Overseas Futures:

• Nikkei 225 Futures: Indicating +185 open in Japan 
• China A50 Futures: Indicating -101 open in China

• DAX Futures: Indicating -95 open in Germany

Portfolio: 

• Slightly Higher: On gains in my medical/biotech sector longs and index hedges

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 25% Net Long

Today's Headlines

Bloomberg: 

• Paris Terror Unites East Europe Against Merkel's Refugee Plan. (video) Eastern European nations are toughening their opposition to German Chancellor Angela Merkel’s plan to force them to take in refugees, arguing that the European Union’s immigration policies may have aided last week’s terrorist attacks in Paris. Bulgarian Foreign Minister Daniel Mitov on Tuesday called discussions on quotas for migrants “absurd” following the events in Paris, while Poland’s incoming Prime Minister Beata Szydlo said a day earlier the EU should review its stance on immigration, pledging to accept refugees only if they don’t endanger security. At least 129 people were killed in Paris on Friday, with a Syrian passport found next to the body of one of the suicide bombers registered on the Greek island of Leros, suggesting the holder may have come into Europe claiming to be a political refugee. The EU is increasingly split along east-west lines over how to deal with the immigration crisis as the European Commission estimates 3 million asylum seekers may be heading toward the bloc by 2017.
• Foreign Companies Scrap Paris Events After Terror Attacks. Corporate events planned for Paris are going dark as Europe’s worst terror attack in a decade spurs foreign companies to scrap visits because of concerns over security and travel disruptions. The Netherlands’ ABN Amro Bank NV, Japan’s Sharp Corp., and home-sharing startup Airbnb Inc. are among companies that have curtailed or canceled events or asked employees to avoid travel to Paris after the Friday assaults that killed at least 129 people. The cancellations show the uphill struggle faced by France to convince businesspeople, investors and tourists that it can maintain security after its second major terror incident in less than a year. Unlike January’s Charlie Hebdo attacks, which mostly targeted the journalists at the satirical newspaper, Friday’s assaults felt entirely random, indiscriminately killing Parisians and visitors at cafes, restaurants and a concert hall. 
• Wall Street Is Running the World's Central Banks. Wall Street is again leading to the corridors of central banks. From Minneapolis to Paris, investors and financiers are increasingly being hired to help set monetary policy less than a decade since the banking crisis roiled the world economy and chilled their public-sector employment prospects. Academic studies of historical voting records at central banks suggest the new trend may mean an increased bias towards tighter monetary policy. Last week’s appointment of Neel Kashkari to run the Federal Reserve Bank of Minneapolis as of January means a third of the Fed’s 12 district banks will soon be run by officials with past ties to Goldman Sachs Group Inc. Kashkari also worked for Pacific Investment Management Co. and managed the U.S. Treasury’s $700 billion rescue of banks during the financial crisis. The New York Fed’s William Dudley was Goldman’s chief U.S. economist for almost a decade before joining the central bank in 2007, while recently appointed Dallas Fed President Robert Steven Kaplan spent 22 years at Goldman and rose to become its vice chairman of investment banking. Although Patrick Harker joined the Philadelphia Fed from the University of Delaware he also served as an independent trustee of Goldman Sachs Trust. Fed Vice Chairman Stanley Fischer and Atlanta Fed President Dennis Lockhart both spent time working for Citigroup Inc. Fed Governor Jerome Powell worked as an investment banker early in his career for Dillon, Read & Co., which eventually became part of Switzerland’s UBS Group AG.
• Energy Shares Lead European Stocks to Biggest Rally in 6 Weeks. Oil-and-gas producers strengthened gains, leading an advance in European shares for a second day. Total SA and Royal Dutch Shell Plc climbed 3.4 percent or more. France’s CAC 40 Index proved resilient in the wake of Friday’s terror attacks, rising 2.8 percent for the biggest gain in developed markets, after closing little changed yesterday. Europe’s stocks advanced the most in six weeks, helped by a falling euro and oil prices that have held above $40 a barrel, according to Guillermo Hernandez Sampere, head of trading at MPPM EK in Eppstein, Germany. The Stoxx Europe 600 Index rose 2.5 percent at the close of trading, as 570 of its stocks rose.
• Copper Sags to Six-Year Low as Investors Sell on Surplus, China. Copper fell to a six-year low as investors added to bearish positions amid expectations for a global supply glut and slowing demand in China, the world’s biggest consumer. Short positions in the metal increased 39 percent, the most since January 2014, according to U.S. Commodity Futures Trading Commission data released Monday. A rally for Chinese stocks fizzled Tuesday after technology and small-company shares plunged, as the Asian nation heads for the slowest economic growth in 25 years. The metal has lost 25 percent this year.
• OPEC Delays Long-Term Strategy Amid Rift Over Production. OPEC’s board of governors was unable to agree on the group’s long-term strategy plan and won’t present it to oil ministers when they meet on Dec. 4 in Vienna, two OPEC delegates with knowledge of the matter said. Approval of the plan is delayed until at least the next meeting of the board of governors in 2016, said the delegates, who asked not to be identified because the plan isn’t public. Calls to the headquarters of the Organization of Petroleum Exporting Countries in Vienna weren’t immediately answered. 
• Swelling Global Grain Glut Spurs Largest Bearish Bet Since June. Overflowing grain bins prompted money managers to expand their wagers on lower crop prices by almost ten times in the space of a week. Global inventories of corn, wheat and soybeans will each rise to all-time highs before next year’s North American harvests, the U.S. government forecasts. While grain prices have already dropped to five-year lows, hedge funds are predicting more losses as stockpiles expand. The funds are holding the biggest bearish bet on the crops since June. 
• Will Fed Tightening Expose the Bear in a Bull Run? (video)
• Druckenmiller Among Top Managers Who Cut Back U.S. Stocks. (video) Some of the world’s top hedge fund managers scaled back their U.S. stock investments last quarter as markets tumbled. The value of Stan Druckenmiller’s disclosed U.S.-listed equity holdings dropped 41 percent to $868 million, according to a filing from the billionaire’s family office. The listed holdings at Louis Bacon’s Moore Capital Management fell 39 percent to $1.65 billion, while at David Tepper’s Appaloosa Management, they dropped 30 percent to $2.82 billion.
• Merchants of Debt. Big problems get a whole lot bigger when big debt is involved. The prime example is energy companies, many of which borrowed record amounts of cash during the recent commodity boom only to run into trouble as soon as oil prices headed south. But another important one can be found in overly leveraged U.S. retailers, which are struggling in the face of a structural shift in consumers’ spending habits. Macy’s, for example, the largest U.S. department-store company with about $7 billion of debt outstanding, plunged the most in more than seven years last week after the chain missed third-quarter sales estimates and cut its annual profit forecast. Its bonds had already dropped almost 3 percent in the year leading up to the earnings and kept on falling after that as investors worried about the company’s future viability, Bank of America Merrill Lynch index data show. It’s not alone.

Fox News:

• Hill Republicans move to 'pause' Syrian refugee effort, with states having limited say. (video) Most U.S. governors have made clear they don’t want Syrian refugees in their states after the deadly Paris terror attacks, but only Congress appears to have the authority to stop President Obama’s plan. And Capitol Hill lawmakers are moving swiftly. 
• Live Blog: Terror Attack in Paris. (video)

Zero Hedge:

• German Soccer Stadium Evacuated, Subway Stations Closed After Ambulance Full Of Explosives Reportedly Discovered.
• Who's Winning The "War On Terror"? People Killed Worldwide By Terrorists Soars 80% In A Year. (map)
• "France Is At War": Hollande Unleashes 2nd Day Of ISIS Strikes, Mobilizes 115,000, Moves To Change Constitution.
• Germany-Holland Soccer Match (With Merkel Due To Attend) Canceled, Police Evacuate Stadium After "Concrete Threat".
• Recent Market Action Summarized In Four Words: "Institutions Selling, Retail Buying". (graph)
• SunEdison(SUNE) Is Collapsing (Again). (graph)
• Economic Theory Meets Main Street Reality. (graph)
• Worst Economic Impact Still To Come, Fed's Fischer Warns As Dollar Soars To 12-Year Highs. (graph)
• The Nasdaq's Ever-Mounting Internal House Of Cards.  (graph)
• Buyout Bubble Bursts As Banks Pull Carlyle's 'Biggest LBO Of The Year' Bond Deal Amid Soaring Costs.
• Refugee Blowback: More Than Half Of America's Governors Oppose Entry Of Syrians.
• Homebuilder Sentiment Drops For First Time In 6 Months. (graph)
• Beware Buying Crude: Oil Storage Is "Increasingly Full". (graph)
• Oil Ain't Buying It. (graph)
• US Industrial Production Growth Slumps To Weakest Since January 2010. (graph)
• Thanks Janet - The Cost Of 'Renting' In America Is Rising At Its Fastest Pace In 8 Years. (graph)
• Healthcare & Housing Cost Surge Sparks Biggest Rise In Core Consumer Prices Rise In 16 Months. (graph)
• Top Hedge Funds Dump Stocks In Q3: Complete 13-F Summary.

Business Insider:

• The Paris attacks exposed a rift that could lead to a new government-shutdown battle.
• Dietary-supplement stocks are getting crushed.
• Passenger restrained on British Airways jet after reportedly trying to open airplane door mid-flight.
• The stock market looks more like the crash of 1937 — not the rebound of 2011. (graph)
• Dick's Sporting Goods(DKS) CEO blames slowing sales on nice weather.
• Air Liquide is buying Airgas(ARG) for $13.4 billion.

@Breaking911:

• BREAKING: Hanover Police Chief Tells Sky News 'There is a Serious Threat to the City' - 'Plan of Explosion'.

@L0gg01:

• GERMAN GSG9 ANTI-TERROR COMMANDO ENROUTE TO HANNVOER, BILD SAYS.

Breaking News:

• Hannover, Germany, Stadium Evacuation: Latest Updates.

Telegraph:

• Finland to discuss leaving eurozone after disgruntled citizens force debate. Finnish politicans to debate "Fixit" in parliament following citizens' petition demanding referendum on euro membership. 
• Europe is sliding towards the abyss, and the terrorists know it. The terrorists have struck just as Europe is at its most vulnerable - economically as well as politically.  

Channel NewsAsia:

• SGX flags concerns about financial accounting by several China-linked firms. (video) Companies at risk include those from the textile and sporting goods, manufacturing, heavy industries, packaging, electrical and electronics, retail and chemical sectors, according to Singapore Exchange's Chief Regulatory Officer. The Singapore Exchange (SGX) on Tuesday (17 Nov) expressed concern about write-offs made by by some companies with" large" operations in China, and said it is closely monitoring the disclosures made. "Several companies with large operations in China have recently announced adverse and significant changes in their financial positions under perplexing circumstances," Chief Regulatory Officer Tan Boon Gin wrote in a column published on the SGX website. "In some instances, the companies reported customer claims for compensation more than 10 times the value of the original sales which is the subject to the claim. In others, trade receivables written off ballooned and explanations offered did not provide clarity or comfort," Mr Tan said.

Bear Radar

Style Underperformer: 

• Small-Cap Value -.32%

Sector Underperformers: 

• 1) Gold & Silver -5.48% 2) Oil Tankers -3.78% 3) Alt Energy -2.15%

Stocks Falling on Unusual Volume:

• DKS, URBN, OSIR, CLVS, GNC, SHOP, BKH, ADPT, VSI, RMAX, UTG, UA, OXLC, KLIC, YPF, OPB, TITN, PRTY, TERP, HLF, LILAK, FTD, KMF, BPMC, BSM, HIBB, MPLX, VSI, GMCR, CLVS and RDUS

Stocks With Unusual Put Option Activity: 

• 1) SBGI 2) DKS 3) JOY 4) BBY 5)UTX

Stocks With Most Negative News Mentions: 

• 1) CHK 2) SUNE 3) VRX 4) GNC 5) HLF

Charts:

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

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.