Tuesday Watch

Evening Headlines

Bloomberg:  

• UBS Expects China to Ease Its Cash Crunch.

• Asian Stocks Head for Mixed Start; Oil Rebounds: Markets Wrap. Asian stocks were poised for a mixed start to trading that sees Chinese markets reopen for the first time since trade tensions with the U.S. escalated. Oil rose before this week’s OPEC meeting and the dollar steadied. Futures signal losses for Hong Kong shares as traders return from a holiday, while Japanese stocks point to a more muted start. The S&P 500 Index posted a small retreat and Treasury yields were little changed after trading near the lowest this month. Emerging-market equities extended a drop after their worst weekly performance in a month, while commodity currencies weakened amid renewed concern over trade protectionism. The S&P 500 fell 0.2 percent. Futures on Japan’s Nikkei 225 were flat in Singapore trading. Hang Seng futures were about 0.6 percent lower. 

• Fed's Williams Sees Rosy Economy, Bank Culture Still Needs Work.

Wall Street Journal:

• Mergers Would Make AT&T, Comcast World’s Most Indebted Companies.

• Merkel’s Government Avoids Collapse Over Migrant Battle, at Least for Now.

• Google Invests $550 Million in Chinese Online Shopping Site JD.com.

• Are the Tax Cuts Working? What to Watch in 12 Charts.

• Nashville Residents Fear It Is the Next Atlanta.

MarketWatch.com:

• Headlines focusing on stock market risks ignore powerful catalysts.

• Senate rejects Trump deal, reinstates ban against ZTE.

• Improving market breadth could indicate stock strength ahead.

Fox News:

• DHS boss grilled by media on immigration 'crisis,' demands policy changes in tense briefing.

CNBC:     

• Trump says he has asked USTR to identify $200 billion in Chinese goods for additional tariffs at 10% rate.

• Goldman Sachs(GS): Chances of a Democrat 'blue wave' in November are diminishing.  

• After-hours buzz: TELL, AMC & more.  

• Market in 'earnings void right now,' but it will bounce back, says investor.

Zero Hedge: 

• Horowitz Reveals That Comey Is Under DOJ Investigation Over Mishandling Classified Info.

• Musk Accuses Mystery Employee Of "Extensive And Damaging Sabotage".

• US Futures Plunge After Trump Calls For $200 Billion More Tariffs On China.

• Senate: Two-Tiered Justice System In FBI Clinton/Trump Investigations.

• Surprise! Taxpayers Have Been Footing The Bill For Sexual Misconduct In Congress.

• Bonds, Commodities, & Dollar Go Nowhere As Tech Stocks Shrug Off Trade War Turmoil. 
  

• $250MM Hedge Fund Started By Passport Alum Closes After Just One Year.

Business Insider:

• Trump's approval rating just reached its highest level yet in the gold standard of presidential indicators.

• 'Gaming disorder' has been classified as a mental health condition by the World Health Organization — here's what that means.

• Russia could be storing nuclear weapons less than 50 miles from the Polish border.

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 78.0 +.5 basis point 

• Asia Pacific Sovereign CDS Index 13.25 +.25 basis point.

• Bloomberg Emerging Markets Currency Index 69.78 -.02%.

• FTSE 100 futures -.22%.

• S&P 500 futures -.45%.

• NASDAQ 100 futures -.45%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• None of note

After the Close:

• (FDX)/5.69

• (LZB)/.64

• (ORCL)/.94

Economic Releases

8:30 am EST

• Housing Starts for May are estimated to rise to 1311K versus 1287K in April.

• Building Permits for May are estimated to fall to 1350K versus 1352K in April.

Upcoming Splits

• (ACGL) 3-for-1

• (TMSR) 2-for-1

Other Potential Market Movers

• The RBA Minutes, US weekly retail sales reports, Oppenheimer Consumer Growth Conference, Jefferies Consumer Conference, JMP Securities Financial Services Conference and the (MKSI) analyst day could also impact trading today.

BOTTOM LINE:  Asian indices are lower, weighed down by financial and industrial shares in the region. I expect US stocks to open modestly lower and to maintain losses into the afternoon.  The Portfolio is 75% net long heading into the day.