Style Outperformer:
Sector Outperformers:
- 1) Biotech +1.7% 2) Gaming +1.1% 3) Drugs +.9%
Stocks Rising on Unusual Volume:
Stocks With Unusual Call Option Activity:
- 1) CRC 2) VRSN 3) VIAB 4) AEO 5) COTY
Stocks With Most Positive News Mentions:
- 1) P 2) CHK 3) PM 4) AZO 5) HPQ
Charts:
Today's Headlines
Bloomberg:
- Hanjin Collapse Is Triggering Short-Term Rate Spike, Maersk Says. Maersk
Line, the world’s largest container shipping company, is seeing a
short-term rise in freight rates and an inflow of new clients after the
collapse of Hanjin Shipping Co. “There’s no doubt that we’re seeing a
reaction in the rate market,” Klaus Rud Sejling, the executive in
charge of Maersk Line’s east-west network, said in a phone interview.
“The question is, what will happen with the rates in the longer term. In
the short term, the effect is positive, but there are many factors that
can influence rates in the medium and in the long term.”
- Yen Rises as Aussie, Kiwi Hold Losses; Won Slides for Third Day. The
yen gained as the Australian and New Zealand dollars held declines
after a rout in global stocks hurt demand for higher-yielding assets.
Japan’s currency halted a two-day drop after equities and
emerging-market assets slid on Friday in the biggest slump since the
U.K’s vote in late June to leave the European Union. Oil fell as OPEC
and other producers mull a ceiling on output. Federal Reserve Governor
Lael Brainard will speak in Chicago Monday. South Korea’s won fell for a
third day, heading for its longest slide in two months.
- Hong Kong Stocks Retreat Most in Two Months on Fed Rate Concern.
Hong Kong stocks slumped the most in more than two months, led by
financial companies, amid concern central banks in the world’s biggest
economies are questioning the benefits of loose monetary policy. The
Hang Seng Index fell 2 percent as of 9:40 a.m., heading for its biggest
loss since June 24, China Merchants Bank Co. and China Life Insurance
Company Ltd. retreated more than 3 percent. A gauge of property stocks
declined for the first time in eight days. The Shanghai Composite Index
slid 1.7 percent, breaking its recent calm.
- Asia Stocks Slide on Central Bank Angst After U.S. Market Slumps.
Asian stocks fell for a second day, following a rout in U.S. shares, as
policy officials at central banks signaled a reluctance to extend
stimulus. The MSCI Asia Pacific Index dropped 1 percent to 138.97 as of 9:04 a.m. in Tokyo.
The losses follow a 2.4 percent tumble on the S&P 500 Index on
Friday as volatility surged after Federal Reserve Bank of Boston
President Eric Rosengren said the economy could overheat if they waited
too long to raise interest rates, spurring bets on a hike by the end of
the year. Equity markets in Singapore, Indonesia, the Philippines and
Malaysia are among those closed for holidays Monday.
- Oil Extends Decline as U.S. Producers Boost Drilling Amid Glut.
Oil extended declines following the biggest drop in more than a month
after U.S. producers increased drilling as the market contends with an
overhang of crude and fuel inventories. Futures slid as much as 1.7 percent in New York after losing 3.7 percent Friday. Rigs targeting crude rose for a second week to 414, the most since February, according to data from Baker Hughes Inc.
Wall Street Journal:
Night Trading
- Asian indices are -2.25% to -1.5% on average.
- Asia Ex-Japan Investment Grade CDS Index 109.0 +2.5 basis points.
- Asia Pacific Sovereign CDS Index 38.25 +2.25 basis points.
- Bloomberg Emerging Markets Currency Index 72.50 -.18%.
- S&P 500 futures -.72%.
- NASDAQ 100 futures -.78%.
Earnings of Note
Company/Estimate
Economic Releases
Upcoming Splits
Other Potential Market Movers
- The
Fed's Lockhart speaking, Fed's Neel Kashkari speaking, Fed's Brainard
speaking, $24B 3Y T-Note auction, $20B 10Y T-Note auction, China
industrial production report, OPEC Monthly Update, USDA WASDE report, Morgan Stanley Healthcare conference, Barclays Financial Services conference and the (CLI) analyst day could also impact trading today.
BOTTOM LINE: Asian indices are lower, weighed down by commodity and industrial shares in the region. I expect US stocks to open lower and to maintain losses into the afternoon. The Portfolio is 25% net long heading into the week.
BOTTOM LINE: I expect US stocks to finish the week modestly lower on election uncertainty, global growth worries, commodity weakness, emerging market currency weakness, rising European/Emerging Markets/US High-Yield debt angst and Fed rate-hike fears. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 25% net long heading into the week.
Bloomberg:
- Stocks Sink With Bonds, Dollar Rallies as Complacency Broken. (video)
Tranquility that has enveloped global markets for more than two months
was upended as central banks start to question the benefits of further
monetary easing, sending government debt, stocks and emerging-market
assets to the biggest declines since June. The dollar jumped. The
S&P 500 Index, global equities and emerging-market assets tumbled at
least 2 percent in the biggest rout since Britain voted to secede from
the European Union. The yield on the 10-year Treasury note jumped to the
highest since June and the greenback almost erased a weekly slide as a
Federal Reserve official warned waiting too long to raise rates
threatened to overheat the economy. German 10-year yields rose above
zero for the first time since July after the European Central Bank
downplayed the need for more stimulus.
- Leverage Soars to New Heights as Corporate Bond Deluge Rolls On. Here’s
a gut check for bond investors: corporate America is now more leveraged
than ever. As this year’s corporate bond sales raced past $1 trillion
on Wednesday -- marking the fifth consecutive year of trillion-plus
issuance -- Morgan Stanley published a report Friday highlighting the
growing strains on company balance sheets. The report, which
estimated US companies’ collective debt at a record 2.4 times their
collective earnings as of June, comes at a time of growing angst in
global bond markets. “The investment-grade ‘safe’ part of the market
is becoming the most dangerous,” said Ashish Shah, chief investment
officer at AllianceBernstein LP. “There are so little returns out there. People are crowding into whatever they can.”
- EU’s Austerity Programs Are ‘History’ Now, Malta’s Scicluna Says. The
European Union has turned a corner from a long spell of belt-tightening
and is ready to invest in public services again, Maltese Finance
Minister Edward Scicluna said. “The austerity programs are history,”
Scicluna said in an interview at a meeting of EU finance ministers in
Bratislava, Slovakia. “The sheer self-flagellation undertaken unanimously by all EU member states will remain a blot on our economic history books.”
Since the start of the decade, euro-area governments have forced
through billions of euros of cuts in public spending and infrastructure
projects as they tried to slash budget deficits after Greece’s debt
mountain spooked investors and sent panic throughout the bloc.
- Perry’s Assets Plunge 60% to $4 Billion as Wagers Backfire. Perry
Capital, the 28-year-old hedge fund run by Goldman Sachs Group Inc.
alumnus Richard Perry, has lost more than half of its assets in less
than a year after posting declines since 2014. The firm’s assets slumped
to $4 billion as of the end of August compared with $10 billion in
September last year, according to a person with knowledge of the matter.
Perry, based in New York, has posted losses of 18.4 percent from the
beginning of 2014 through July of this year, an investment document
shows. The fund declined 2.6 percent in the first seven months of this
year after losing 12.6 percent in 2015. Michael Neus, general counsel at
Perry Capital, didn’t return calls and e-mails seeking comment.
Wall Street Journal:
- Dangers Rise as America Retreats. Fifteen years after 9/11, the next president will face greater risks and a weaker military to combat them. Fifteen years ago this Sunday, nearly 3,000 Americans were killed in the
deadliest attack on the U.S. homeland in our history. A decade and a
half later, we remain at war with Islamic terrorists. Winning this war
will require an effort of greater scale and commitment than anything we
have seen since World War II, calling on every element of our national
power.
- NFL Bracing for Possible Player Demonstrations. Protests could escalate debate set off by Colin Kaepernick’s refusal to stand for national anthem.
- North Korea Nuclear Test Puts Pressure on U.S. Washington assesses options for acting on own in face of China’s apparent reluctance to rein in ally.
- Deadly Airstrikes Follow Cease-Fire Agreement in Syria. No claims of responsibility for attacks as the EU, Turkey and U.K. welcome U.S.-Russia agreement.
Barron's:
- Had bullish commentary on (VOD), (PII), (BEL), (NVO) and (BWA).
Fox News:
- Clinton says she regrets calling Trump supporters 'deplorables'. Hillary
Clinton expressed “regret” Saturday for saying half of Republican
presidential rival Trump’s supporters could be put into a "basket of
deplorables." Clinton, the Democratic presidential nominee, said in her
apology that she was “grossly generalistic” in criticizing Trump
supporters, using that same phrase Friday night when attacking them at a
New York fundraiser. “That's never a good idea,” she said Saturday.
“Racist, sexist, homophobic, xenophobic, Islamaphobic, you name it,”
Clinton said Friday. “There are people like that and he has lifted them
up.”
CNBC:
- Rising from the ashes: Downtown Manhattan 15 years after 9/11. Lower
Manhattan, the neighborhood that was home to the Twin Towers and which
endured the brunt of the Sept. 11, 2001, terrorist attacks, has spent
the last decade and a half in a state of healing and recovery. Today
that process appears to be paying off.
NY Times:
- Apple(AAPL) Is Said to Be Rethinking Strategy on Self-Driving Cars. Apple
is rethinking what it plans to do about self-driving cars, just as
other big tech companies appear ready to plow ahead with competing
efforts. In a retrenchment of one of its most ambitious initiatives,
Apple has shuttered parts of its self-driving car project and laid off
dozens of employees, according to three people briefed on the move who were not allowed to speak about it publicly.
