Friday Watch

Evening Headlines

Bloomberg: 

• White House Split Over Hardline Response to China Trade War.

• Trump's Trade War Has Hedge Funds Diving for Cover in China. 

• Asia Stocks Extend Week's Drop; Dollar Steadies. Asian stocks fell, extending the worst week for regional equities since late March, amid concern global trade restrictions will curb growth. The dollar steadied and Treasuries pared gains. Japan’s Topix index brought this week’s decline to more than 3 percent, while equities also dropped in South Korea and Australia. The S&P 500 Index fell and the Dow Jones Industrial Average posted its eighth straight drop after the Supreme Court ruled states can collect sales tax from online retailers, rattling Amazon.com and EBay. The pound held gains triggered by the BOE’s chief economist vote for an immediate rate hike. Japan’s Topix index fell 0.9 percent as of 9:05 a.m. in Tokyo. Australia’s S&P/ASX 200 index lost 0.1 percent. South Korea’s Kospi dropped 0.5 percent. Futures on the Hang Seng were down about 1 percent. 

• Five Things You Need to Know to Start Your Day.

• Fannie-Freddie Rise After White House Proposes Privatization.

Wall Street Journal:

• Trump’s Order to End Separation Sows Confusion at Border.

• Iran Threatens to Upend Possible OPEC Deal to Lift Oil Production.

• U.S. Military Aircraft Targeted By Lasers in Pacific Ocean, Officials Say. 

• Trade Concerns Hammer Global Auto Stocks.

• AT&T Unveils $15-a-Month Video Service. 

• Insurers to Expand Presence in ACA Marketplaces.

MarketWatch.com:

• Small-cap stocks are on a tear—but shares in tiny companies have done even better.

• These 7 stocks could profit handsomely from a cashless future.

Fox News:

• Charles Krauthammer, Pulitzer Prize winner and longtime Fox News contributor, dead at 68.

• 'Extraordinary' Strzok removal shows FBI agents in crosshairs from IG probe.

CNBC:       

• Pentagon asked to prep housing for up to 20,000 unaccompanied migrant children on military bases.

• The head of Amazon's marketplace has lost most of his authority amid internal shake-up.

• After-hours buzz: RHT, CMC & more.

• House narrowly approves farm bill that could cut food stamps to millions of low-income Americans.

• Red Hat(RHT) slides on low guidance.   

• Speed is helping fuel fast casual restaurants: Analyst.

Zero Hedge: 

• Former Secret Service Agent Files RICO Suit Against Clintons, Soros, Podesta, Brock.

• Trump Gloats After SCOTUS Dings Online Retailers: "Great Victory For Consumers". 

• Watch IG Horowitz' Reaction When Asked If Hillary Committed "No Crimes".

• Novice Daytrader Mistakenly Trades In Live Account, Builds $5 Billion Position, Makes $10MM Profit.

• The First Burger Restaurant Run By A Robot Is Opening In San Francisco.

• Watch IG Horowitz' Reaction When Asked If Hillary Committed "No Crimes".

• Fed Finds All 35 Banks Will Be Fine If Stocks Crash by 65%, VIX Hits 60.

• Dow Ties Worst Losing Streak In 40 Years.

• US Members Of Congress Must Now Disclose Crypto Holdings Above $1,000.

Business Insider:

• The Supreme Court just issued a major ruling on how online retailers can charge sales tax. Here's what it means for Amazon.

Telegraph:

• Bank of England to get sweeping new powers as Chancellor says UK will not be a rule-taker from Brussels.

Night Trading 

• Asian equity indices are -.75% to unch. on average.

• Asia Ex-Japan Investment Grade CDS Index 80.25 +1.0 basis point. 

• Asia Pacific Sovereign CDS Index 14.0 +.75 basis point.

• Bloomberg Emerging Markets Currency Index 69.53 -.03%.

• FTSE 100 futures +.09%.

• S&P 500 futures +.17%.

• NASDAQ 100 futures +.02%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (BB)/.00

• (KMX)/1.24

• (SFUN)/.04

After the Close:

• None of note

Economic Releases

9:45 am EST

• The Preliminary Markit US Manufacturing PMI for June is estimated to fall to 56.1 versus 56.4 in May.

• The Preliminary Markit US Services PMI for June is estimated to fall to 56.5 versus 56.8 in May.

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone PMI report, OPEC meeting and the Deutsche Bank Auto Tech Conference could also impact trading today.

BOTTOM LINE:  Asian indices are mostly lower, weighed down by industrial and technology 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.