Tuesday Watch

Evening Headlines

Bloomberg:  

• Donald Trump-Kim Jong Un Summit in Singapore.

• U.S. Lawmakers Seek to Restore ZTE Penalties in Defense Bill.

• Asia Stocks Set to Gain Ahead of Trump-Kim Summit. Asian stocks are set for a positive open as investors look beyond weekend trade ructions to focus on the three major central bank meetings this week and Tuesday’s historic summit between President Donald Trump and North Korea’s leader. Equity index futures were higher in Japan, Australia and Hong Kong. The S&P 500 Index rose Monday for the second straight session, though it gave up some gains just before the close. The dollar climbed and U.S. Treasury yields ticked higher. The pound fell as Theresa May’s landmark Brexit legislation goes to Parliament. Futures on the Nikkei 225 Stock Average rose 0.4 percent in Singapore. S&P/ASX 200 Index futures were up 0.4 percent. Hang Seng Index futures gained 0.1 percent. S&P 500 futures were little changed as of 7:01 a.m. in Tokyo.

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

• Seattle Poised to Repeal Tax On Amazon and Large Employers. 

• Someone Bet Big on Boston Scientific Before Stryker Deal Report.

Wall Street Journal:

• Summit Draws All Eyes to Singapore.

• Stryker Makes Takeover Approach to Boston Scientific.

• U.S.-Canada Rift After G-7 Meeting Roils Nafta Talks.

• The Fed’s Biggest Dilemma: Is the Booming Job Market a Problem?  

• AT&T’s(T) Dream Deal Hangs on Ruling.

• Invented at Duke, Financed in Beijing: Powerful Spy Camera Shows China’s AI Ambition.

• Electric-Vehicle Frenzy Sweeps Up Once-Unloved Metal: Nickel. 

• Philly’s Affordable-Housing Plan: Tax New Buildings.

MarketWatch.com:

• Here’s why stock-market investors are so relaxed about trade wars and North Korea.

• Bitcoin tumbles 10%, crypto market cap down $300 billion year-to-date.

• Economic adviser Larry Kudlow suffers heart attack, Trump says.

Fox News: 

• Trump's North Korea bargaining chips: What is president prepared to offer?

• DOJ slams univ’s ‘bias response team,’ calls college ‘shelter for fragile egos’.

CNBC:    

• Corporate executives are using stock buybacks to pad their own compensation, according to the SEC.

• Tesla(TSLA) stock rallies after Elon Musk promises 'full self-driving features,' rocket-powered Roadster.

• Comcast preparing to announce bid for Fox on Wednesday if AT&T-Time Warner is approved, sources say.

• After-hours buzz: RH, PLAY and more.

• US Steel(X) planning to add more than 800 jobs this year.

• Soon you may be able to change your car's interior at the touch of a button.

Zero Hedge:    

• Obama Secretly Meeting With 2020 Democratic Contenders.

• Maltese Professor Who Lured Papadopoulos Tied To Soros' Open Society Foundation. 

• Sessions Further Limits US Immigrants: Rules Gang Violence Not Basis For Asylum.

• The History (And Rising Power) Of Central Banks.

• Boris Johnson Leaked Recording: "I Am Increasingly Admiring Donald Trump. There's Method In His Madness".

• Senate Releases Facebook Hearing Responses: Willing To Write Own Regulations, Promises Not Spying On Users.

• Stocks Gain, Bonds Feel No Pain As Cryptos Crash & Dollar Triggers 'Golden Cross'.

Night Trading 

• Asian equity indices are -.25% to +.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 78.75 +.75 basis point 

• Asia Pacific Sovereign CDS Index 13.0 unch.

• Bloomberg Emerging Markets Currency Index 70.83 -.09%.

• FTSE 100 futures -.10%.

• S&P 500 futures -.03%.

• NASDAQ 100 futures -.05%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (CASY)/.66

• (JW/A)/.79

• (LE)/-.17

After the Close:

• (HRB)/5.27

• (OXM)/1.23

Economic Releases

6:00 am EST

• The NFIB Small Business Optimism Index for May is estimated to rise to 105.0 versus 104.8 in April.
  

8:30 am EST

• The CPI MoM for May is estimated to rise +.2% versus a +.2% gain in April.

• The CPI Ex Food & Energy for May is estimated to rise +.2% versus a +.1% gain in April.

• Real Avg. Weekly Earnings YoY for May.
  

2:00 pm EST

• The Monthly Budget Statement for May is estimated at -$139.5B versus $214.3B in April.
  

Upcoming Splits

• (TREX) 2-for-1

• (HBNC) 3-for-2

Other Potential Market Movers

• The Eurozone ZEW Index, monthly OPEC market report, $14B 30Y T-Note auction, WasDe Crop report, US weekly retail sales reports, Morgan Stanley US Financials Conference, Entertainment Electronics Expo, Deutsche Bank Consumer Conference, William Blair Growth Stock Conference, Wells Fargo Energy Conference and the Goldman Sachs Healthcare Conference could also impact trading today.

BOTTOM LINE:  Asian indices are mostly higher, boosted by technology and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing modestly higher.  The Portfolio is 75% net long heading into the day.