Monday Watch

Today's Headlines

Bloomberg:   

• Xi to Counter Trump Blow for Blow in Unwanted Trade War.   

• Japan’s May Exports Hold Steady Amid Trade-War Anxiety.

• Merkel Fate Hangs in Balance With Asylum Policy Deadline.

• Italy to Turn Away New Migrant Ships From Libya.

• Bitcoin Could Break Internet, Central Banks' Body Says.  

• Asian Stocks Open Mixed; Oil Drops Ahead of OPEC: Markets Wrap. Asian stocks declined amid investor concern the exchange of threats between China and the U.S. is the precursor of a full-blown trade war. Oil dropped, while the dollar edged higher as Treasury yields steadied just above 2.90 percent. Stocks fell in Japan as the yen advanced, while S&P 500 Index futures pointed to losses. South Korean equities also slipped , while they fluctuated in Australia. China and Hong Kong, markets more sensitive to deepening trade tensions, were closed for holidays. Oil extended a decline as Saudi Arabia and Russia prepared for a clash with other OPEC members and allies over whether to raise production. The pound ticked lower ahead of a parliament debate on the Brexit withdrawal bill. The Topix index fell 0.8 percent as of 9:48 a.m. in Tokyo. Australia’s S&P/ASX 200 Index was little changed. Kospi index fell 0.2 percent. S&P 500 Index futures lost 0.4 percent. The MSCI Asia Pacific Index declined 0.5 percent.

• Saudi-Proposed Supply Boost Faces Vetoes in OPEC, Iran Says. 

• Quiet Surface Masks Hints of Fervor in Stocks.

Wall Street Journal:

• The Bull Market’s Next Test: Slower Earnings Growth.

• The Force Behind Europe’s Populist Tide: Frustrated Youth.

• Market Worry Shifts to Nafta’s Fate.

Fox News:

• DOJ watchdog, FBI boss to face livid lawmakers in Senate hearing on Clinton probe, Comey.

Zero Hedge:

• Second FBI Informant Tried To Entrap Trump Campaign With $2 Million Offer For Hillary Dirt: Roger Stone.  

• The Bubble's Revenge: China's Stock Market Is Littered With 'Pledged-Share Land-Mines' Buried During 2015 Mania. 

• The Sources Of Tax Revenue For Every US State, In One Chart.

• The Biggest Misconceptions About Working For A Hedge Fund.

• Jatras: It's Time For America To Cut Loose Our Useless So-Called "Allies".

• The 4 Stages Of The Collapse Of Venezuela.

• Wealthy Blue-Staters Are Using Shady Alaskan Trusts To Dodge SALT-Deduction Caps.

• Optimism.

• "Terrified" San Francisco Tourists Shocked By Aggressive Vagrants, Discarded Needles, Dead Bodies.

• The Biggest Misconceptions About Working For A Hedge Fund.

• These European Countries Are Refusing To Accept The Unchecked Influx Of Migrants.

• As Labor Shortage Worsens, Small Businesses Are "Recruiting In The County Jail".

• Graphic Video Of The Moment A Russian Taxi Driver Slams Into Pedestrians Before Sprinting Away.

• "We Had Whistleblowers": Nunes Reveals "Good FBI Agents" Tipped Off Congress About Comey Team.

• Giuliani: "Comey Should Go To Jail" , Biased FBI Agents "Fired And Imprisoned This Week".

• FBI Agents Called Hillary "President" While Investigating Her, Texted "Screw You Trump" On Election Day.

• OIG Report On FBI/Clinton Shows Secrecy Threatens Democracy.

• IG Report Confirms Obama Lied About Hillary Email Server.

• From 'Steve Jobs' To No Job: Theranos Fires CEO Holmes As US Files Criminal Charges.

• Weekend Reading: Merger Mania.

• Dovish Draghi Dominates Powell As Dollar Spike Wreaks Global Havoc,

Night Trading

• Asian indices are -1.25% to -.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 77.50 +.5 basis point.

• Asia Pacific Sovereign CDS Index 13.0 +.25 basis point.

• Bloomberg Emerging Markets Currency Index 69.86 -.11%.

• FTSE 100 futures -.13%

• S&P 500 futures -.46%.

• NASDAQ 100 futures -.63%.

Morning Preview Links

Earnings of Note

Company/Estimate 
Before the Open: 

• None of note

After the Close:

• None of note

Economic Releases
10:00 am EST

• The NAHB Housing Market Index for June is estimated at 70.0 versus 70.0 in May.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Bostic speaking, Eurozone Trade Balance report and the JPMorgan Energy Conference could also impact trading today.

BOTTOM LINE: Asian indices are lower, weighed down by financial and technology shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the week.