Wednesday Watch

Evening Headlines

Bloomberg:              

• Bond-Fund Giant Is Wary on Adding China Debt to Global Portfolios.

• Baidu(BIDU) Sales Forecast Misses Estimates as China’s Economy Slows.

• Samsung Scales Back Capital Spending as Earnings Top Estimates.

• Brexit Worry Drags U.K. Business Optimism to Lowest in a Year.

• Asia Stocks to End Torrid Month Mixed; Bonds Slip. Asian stocks looked set to end a bruising month in mixed fashion following a topsy-turvy U.S. session that eventually saw equities close higher. Treasuries fell and the dollar climbed. Shares in Australia and New Zealand climbed and futures pointed to a higher start for stocks in Japan, with Hong Kong looking modestly lower. The S&P 500 Index twice erased gains that topped 1 percent before finally securing a rebound in the final hour of trading. Chinese markets will be in focus after calls from authorities to encourage funds to invest spurred a rally Tuesday, while the yuan held near the weakest level in a decade against the greenback. Futures on Japan’s Nikkei 225 added 0.9 percent in Singapore. FTSE China A50 futures rose 0.4 percent. Australia’s S&P/ASX 200 index added 0.3 percent. Futures on Hong Kong’s Hang Seng declined 0.1 percent. The S&P 500 Index rose 1.6 percent. Futures on the S&P 500 were little changed.  

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

• How Low Can the FANG Stocks Go? Traders Search for a Bottom.

Wall St. Journal:

• Apple(AAPL) Raises Prices on New MacBook Air, iPad Pro.

• GE(GE) Slashes Payout, Discloses Criminal Probe as Shares Sink.

• Trump Seeks to Curb Birthright Citizenship, a Move Scholars Dismiss.

• The Yawning Divide That Explains American Politics.

Fox News:   

• Liberal network slammed for star’s silence after guest lobs outlandish anti-Trump claim.

CNBC:       

• The best thing for this market would be more bad economic news: Cramer.

• Southern California suffers its worst housing slump in over a decade.

• JP Morgan strategist: We are not panicking,' US is best bet in this environment. 

• Stocks making the biggest moves after hours: Facebook, Electronic Arts, T-Mobile and more.

• Nothing should derail consumer confidence this holiday season, says CEO behind survey.

• The world's first humanless warehouse is run only by robots and is a model for the future.

• Raymond James' Jeff Saut: 'A major bottom' is approaching in the market.

Zero Hedge:

• "Self Segregation" - Niall Ferguson Exposes The Destructive Power Of Social Networks.

• DOJ Indicts Two Chinese Intelligence Operatives In Corporate Hacking Scheme.

• Facebook(FB) Slides After Revenue, Daily Users Miss As Operating Costs Soar; Zuck Warns Of "Stories" Troubles.

• Energy Junk Bonds Tumble, Dragging High Yield Spreads To 2018 Wides.

• "We Can't Be Talking About Gun Bans": Project Veritas Catches Another Dem Candidate Hiding Their Progressivism.

• Successful Hedge Funds Are Extending Lock Ups Periods To Avoid Forced Sales.

• Princeton Issues Checklist For "Inclusive" Halloween.

• "Organized Busing Operation" Exposed, Moving Migrants Closer To US Border.

• WTI Pops Despite Sixth Weekly Crude Build In A Row.

• Stocks Bounce In 'Pause That Refreshes' For Bears As Systemic Risk Surges.

Business Insider:

• Taliban says 5 former detainees who were exchanged for Sgt. Bowe Bergdahl have re-joined its ranks.

Telegraph:

• ECB heading for 'Titanic iceberg' as Italy crumbles and eurozone slows to five-year low.

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 91.5 -1.25 basis points. 

• Asia Pacific Sovereign CDS Index 10.5 unch.

• Bloomberg Emerging Markets Currency Index 66.45 -.05%.

• FTSE 100 futures +.22%.

• S&P 500 futures -.07%.

• NASDAQ 100 futures +.07%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (APTV)/1.20

• (ADP)/1.11

• (BAX)/.74

• (BG)/2.40

• (CLX)/1.59

• (EL)/1.23

• (GM)/1.25

• (HES)/-.04

• (ICE)/.80

• (IGT)/.31

• (K)/1.07

• (TAP)/1.59

• (S)/-.01

• (YUM)/.83

After the Close:

• (ALL)/2.25

• (AIG)/.17

• (APA)/.47

• (CF)/.13

• (ESRX)/2.42

• (NXPI)/1.90

• (RGLD)/.38

• (RGR)/.92

• (XPO)/.99

Economic Releases

8:15 am EST

• The ADP Employment Change for October is estimated to fall to 187K versus 230K in September. 

8:30 am EST

• The 3Q Employment Cost Index is estimated to rise +.7% versus a +.6% gain in 2Q.

9:45 am EST

• The Chicago Purchasing Manager Index for October is estimated to fall to 60.0 versus 60.4 in September.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory gain of +3,014,730 barrels versus a +6,346,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -1,777,000 barrels versus a -4,826,000 barrel decline the prior week. Distillate inventories are estimated to fall by -1,398,820 barrels versus a -2,262,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.46% versus a +.4% gain prior.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The China Manufacturing PMI report, Eurozone CPI report, weekly MBA Mortgage Applications report and the (HLF) investor day could also impact trading today.

BOTTOM LINE:  Asian indices are mostly higher, boosted by industrial and commodity shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 50% net long heading into the day.