Wednesday Watch

Evening Headlines

Bloomberg:   

• U.S. Planning Actions Targeting Chinese Hackers, Spies, Sources Say.    

• Trump Says He Would Meet Xi Again, Hails China Soybean Purchases.

• Trump Says He'd Intervene in Huawei CFO's Case for Trade Deal.

• U.K.’s May Faces Biggest Crisis as Confidence Vote Reports Swirl.

• Asian Stocks Head Higher, Treasuries Hold Drop. Asian equities advanced after a volatile U.S. session with investors continuing to assess the prospect for a trade deal and averting another American-government shutdown. The yield on 10-year Treasuries held steady. Japanese and Australian stocks rose and futures indicated gains in Hong Kong and China, while contracts on the S&P 500 Index edged lower. Wednesday began with news that Huawei Technologies Co. Chief Financial Officer Meng Wanzhou was granted bail by a Canadian court. U.S. President Donald Trump said he could intervene in the case if it aids the China trade deal. A rally in U.S. stocks was snuffed out and the S&P 500 ended Tuesday flat. Japan’s Topix index added 0.9 percent as of 9:03 a.m. in Tokyo. Hong Kong’s Hang Seng Index futures rose 0.7 percent. FTSE China A50 futures gained 0.8 percent. Australia’s S&P/ASX 200 Index gained 0.3 percent. Futures on the S&P 500 slid 0.2 percent.    

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

• New RBI Governor, China Tariff Hope, Gen Z's Big Spend: Eco Day.

• Violent Stock Reversals Are Coming Faster Than Any Time Since 2011.  

• Gundlach Says the Bond Market Thinks Rate Hikes Are Unlikely in 2019-2020.

Wall St. Journal:

• Europe’s Divisions Pose Rising Threat to Governments.

• The Road to a Bad Brexit. 

• Market Volatility Leads to Fresh Focus on Machinery Beneath Trading.

• China Moves to Address U.S. Economic Concerns.

• Trump, Top Democrats Clash Over Spending Bill.

MarketWatch.com:  

• Your apps are tracking you — here’s how to stop them.

• Bitcoin moves lower as retail investors increase their bets against the cryptocurrency.

• A ‘violent’ and ‘crushing’ stock move higher is taking shape this month, analyst says.

Fox News:

• Trump, Dems play possible Scrooges as WH clash ratchets up concerns on budget deadlock.

• Gunman on the run after 4 killed, several wounded, officials say.

CNBC:       

• Trade deal with China could be elusive until bitter end of negotiating period

• House Democrats prepare to push for $15 federal minimum wage, setting up clash with big business

• White House delays new farm aid payments on hopes of a China trade deal, sources say.

• China reportedly plans to slash auto tariffs — a huge win for Trump — and auto stocks are moving.

• Cuomo preparing recreational marijuana plan for New York in 2019.

Zero Hedge:  

• Mueller's Investigation Is Missing One Thing: A Crime. 

• Stocks, Yuan Rally On Meng Bail, Trump Trade Comments.

• Huawei CFO Granted Bail, Must Post C$10MM Bond And Submit To 24-7 Surveillance.

• What Do The Paris Riots & Japan's Lack Of Sex Have In Common?

• 4 Dead, 11 Wounded In Strasbourg "Terrorist Attack"; Shooter Identified As "Extremist".

• US Phone Carriers Warn FCC Of "Prohibitive" Costs To Replace Huawei, ZTE Gear.

• HSBC: These Are The Top 10 Risks For 2019.

• The World's Biggest Hedge Fund Is Getting Whacked, And Why "Moneyness" Matters.

• Facebook Files Patent To Calculate Your Location - In The Future.

• WTI Jumps Above $52 After Huge Crude Draw.

• Stormy Daniels Ordered To Pay Trump $293,000 In Legal Fees And Sanctions.

• 'Rumble In The Oval' Sparks Shutdown Fears, Market Mayhem.

Telegraph:

• Macron's credibility shattered as France joins Italy in budget disgrace.

• Comment: China stands ready to make trade open and inclusive.

Night Trading 

• Asian equity indices are +.5% to +1.0% on average.

• Asia Ex-Japan Investment Grade CDS Index 95.0 -3.0 basis points. 

• Asia Pacific Sovereign CDS Index 9.75 -.25 basis point.

• Bloomberg Emerging Markets Currency Index 66.83 +.09%.

• FTSE 100 futures +.20%.

• S&P 500 futures +.26%.

• NASDAQ 100 futures +.29%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (PLAB)/.17

• (VRA)/.16

After the Close:

• (NDSN)/1.47

• (OXM)/.17

• (TLRD).94

Economic Releases

8:30 am EST

• The CPI MoM for November is estimated unch. versus a +.3% gain in October.

• The CPI Ex Food and Energy MoM for November is estimated to rise +.2% versus a +.2% gain in October. 

• Real Avg. Weekly Earnings YoY for November.

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -3,167,910 barrels versus a -7,323,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +1,932,500 barrels versus a +1,699,000 barrel gain the prior week. Distillate inventories are estimated to rise +1,471,800 barrels versus a +3,811,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise by +.41% versus a -.1% decline prior.

2:00 pm EST

• The Monthly Budget Deficit for November is estimated to widen to -$198.0B versus -$100.5B in October.
  

Upcoming Splits

• (EBIX) 5-for-1

Other Potential Market Movers

• The Eurozone Industrial Production report, monthly OPEC Oil Market Report, weekly MBA Mortgage Applications report, BMO Healthcare Conference, (CS) investor day, (LOW) analyst meeting, (HES) investor day, (BF/A) investor day, (UA) investor day and the (DOX) investor day could also impact trading today.

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