Monday Watch

Today's Headlines

Bloomberg:   

• Trump Says U.S. ‘Talking’ With China But Not Ready for a Deal.  

• Japan Exports Decline Again as Global Economic Outlook Darkens.

• Asia Stocks Set to Start Week Higher; Yen Flat. Stocks in Asia were set for gains Monday following a bounce in U.S. equities as traders kick off a busy week for economic data and await commentary from the Federal Reserve chief. Futures pointed higher in Japan, Hong Kong and Australia. U.S. contracts rose after a positive close in the S&P 500 Index helped by speculation European officials will bolster stimulus if growth in the region continues to sputter. Treasuries yields recovered from multiyear lows Friday, after an inversion in the yield curve earlier in the week. The yen and yuan were steady early Monday. The S&P 500 Index gained 1.4%. Futures climbed 0.4% as of 8:25 a.m. in Tokyo. Futures on Japan’s Nikkei 225 rose 0.8%. Hang Seng futures earlier advanced 0.2%. Futures on Australia’s S&P/ASX 200 Index added 0.6%.  

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

• Waiting for Powell, China Revamps Rates, Asia Easing: Eco Day.

• Negative Mortgages Set Another Milestone in a No-Rate World.

• The World Is Waiting for Powell’s Signals.

• CDC Looking Into Pulmonary Illness Linked to E-Cigarettes.  

• Powell Likely to Use Jackson Hole to Suggest Fed Ready to Cut.\

Wall Street Journal:

• Biggest Hong Kong Protest in Weeks Sends Peaceful Message for Change.

• Large Firms Trim Debt, Fueling Surge in Bonds at Center of Leverage Concerns.

• Small Companies Play Big Role in Robocall Scourge, but Remedies Are Elusive.

• Scores Killed in Afghanistan Wedding Blast.

• Iranian Tanker Leaves Gibraltar Over U.S. Objections.

• Trump Isn’t the One Dividing Us by Race.

• The Right’s Left Turn on Drug Prices.

• Fed Chief Wedged Between a Slowing Economy and an Angry President.

Fox News:

• Tlaib, Omar share anti-Trump, Netanyahu image from cartoonist celebrated in Iran Holocaust contest.

• Crenshaw rips Antifa after day of protests in Portland.

• Graham: Americans will soon learn how ‘off the rails’ FBI was on Russia probe. 

• Trump reveals Apple CEO made this 'compelling' case against some tariffs.

CNBC:

• White House pushes back against recession fears, defends trade war.
  

• Amazon execs contributed to Congressional antitrust probe leader two months before July hearing.

• Americans overwhelmingly support free trade as concern grows about Trump’s economy.

• Fed’s Powell must signal a more aggressive stance on rates at Jackson Hole or stocks will tumble, James Bianco warns.

• Trump says he talked to Apple CEO Tim Cook about tariffs and Samsung.

Zero Hedge:    

• Hong Kong's Inevitable Showdown.

• Epstein Prison Guards "Not Cooperating" With DOJ Probe.

• Bankruptcy Filings Rise Among US Energy Producers, Report.

• 'People Don't Want To Be Stupid Twice': Foreign Diplomats Betting On Trump Win In 2020.

• Lessons From Venezuela: Violence, Crime, & Gangs When SHTF.

• Kudlow "Doesn't See A Recession At All", Warns Full 10% China Tariffs To Go Ahead In December.

• Which Hedge Funds Are Making A Killing As Yields Collapse.

• Trump Slams NYT After Leaker Reveals Pivot From 'Russiagate' To 'Racism Witch Hunt' 

• Next Domino To Fall: Inventory Glut Plagues US Auto Sector, New Prices Plunge In July.

• Which Hedge Funds Are Making A Killing As Yields Collapse.

• Checkmate! Corbyn's Please Make Me "Temporary PM" Scheme Fails Already.

Business Insider:

• This former Googler says he's so tired of the astronomical housing prices in San Francisco that he bought land in Austin, Texas instead.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 66.50 -3.5 basis points.

• China Sovereign CDS 52.0 -4.0 basis points.

• Bloomberg Emerging Markets Currency Index 65.71 +.01%.

• FTSE 100 futures +.29%.

• S&P 500 futures +.37%.

• NASDAQ 100 futures +.42%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (EL)/.54

• (SINA)/.51

• (WB)/.60

After the Close:

• (BIDU)/.92

• (FN)/.94

Economic Releases

• None of note

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Eurozone CPI report could also impact trading today.

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