Friday Watch

Evening Headlines

Bloomberg:    

• Citi Tells U.K. to Make a Decision on Brexit as Jobs Are Pondered.

• Stocks in Asia Edge Up as Trade Outcome Mulled. Asia stocks saw modest gains Friday amid muted volumes, as investors awaited further details on U.S.-China trade discussions. Treasuries held Thursday’s losses. Japanese shares recovered after three days of declines, though volumes were down about a fifth. Stocks climbed in Hong Kong, South Korea, Australia and China. U.S. futures were flat. Earlier, the S&P 500 Index fell for a third day but remained within 1% of a record high. The yield on 10-year Treasuries edged up while the dollar held firm. Japan’s Topix index rose 0.4% as of 10:25 a.m. in Tokyo. Hong Kong’s Hang Seng added 0.4%. The Shanghai Composite rose 0.1%. Futures on the S&P 500 Index were little changed. The underlying gauge fell 0.2% on Thursday. Australia’s S&P/ASX 200 Index added 0.5%. South Korea’s Kospi index rose 0.2%.      

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

• Stuck in Global Rut, Inequality Capital, China Optimism: Eco Day

• Oil Set for Third Weekly Advance as Trade Optimism Returns.

• Oracle’s(ORCL) Largely White Board Attracts Congressional Scrutiny.  

• Splunk Gains After Third Quarter Sales Beat Highest Estimate.

Wall Street Journal:

• Charles Schwab Holds Talks to Buy TD Ameritrade.

• Robocall Scams Exist Because They Work—One Woman’s Story Shows How.

• Latin American Protests Spread to Colombia.

• Facebook Weighs Steps to Curb Narrowly Targeted Political Ads.

• Fiona Hill Calls Theories About Election Interference by Ukraine False.

• China Invited U.S. Trade Negotiators for Direct Talks.

• Pelosi Skeptical U.S.-Canada-Mexico Trade Deal Will Pass This Year.

Fox News:

• Democrats could draft 4 articles of impeachment, GOP plans for full Senate trial, sources say.

MarketWatch.com:     

• WeWork's cutting of 2,400 jobs continues in the U.S. this week: CNBC.

CNBC:

• Schwab’s zero-fee trading kicked off a price war and could pay off with the deal of a lifetime.

• Millions head to Hong Kong’s polls, in what could be a ‘barometer’ of public sentiment.

• Nordstrom shares jump after earnings beat estimates.

• Drones are growing into a $100 billion industry.

• Stocks making the biggest moves after hours: Nordstrom, Williams-Sonoma, Pure Storage and more.

• Gap(GPS) shares rise on earnings, sales beat; retailer says making ‘progress’ on split.

Zero Hedge:

• FBI Official Under Criminal Investigation For Fabricating Evidence In Russiagate Probe.

• The Origins Of Thought Police... And Why They Should Scare Us.

• Amid Impeachment Circus, Dems Sneak PATRIOT Act Renewal Past The American People.

• Demands Grow For FBI To Interview Prince Andrew Over Friendship With Jeffrey Epstein.

• Obama Warns Tech Firms Fueling Wealth Inequality, Fears Polarization Could Lead To Social Unrest.

• Are Journalists Creating Drama So They Can Report It?

• 15 US Senators Demand President Trump To Halt Huawei License Approvals.

• Lindsay Graham Requests Full Transcripts Of Joe Biden's Calls With Ukrainian President.

• Bonds, Stocks, Bitcoin, & Bullion All Drop As Trade-Deal Hope Tumbles.

Night Trading 

• Asian equity indices are -.25% to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 65.25 -.75 basis point.

• China Sovereign CDS 39.5 -2.25 basis points.

• Bloomberg Emerging Markets Currency Index  65.60 +.02%.

• FTSE 100 futures +.34%.

• S&P 500 futures +.14%.

• NASDAQ 100 futures +.27%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (BKE)/.43

• (FL)/1.08

• (HIBB)/.15

• (SJM)/2.14

After the Close:

• None of note

Economic Releases
9:45 am EST

• The Preliminary Markit Services PMI for Nov. is estimated to rise to 51.0 versus 50.6 in Oct.

• The Preliminary Markit Manufacturing PMI for Nov. is estimated to rise to 51.4 versus 51.3 in Oct.

11:00 am EST

• The Kansas City Fed Manufacturing Activity Index for Nov. is estimated to rise to -2 versus -3 in Oct.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone GDP report and the LA auto show could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted down 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 100% net long heading into the day.