Tuesday Watch

Evening Headlines

Bloomberg:   

• U.S. Denounces China’s Claims to South China Sea as Unlawful.  

• China’s Stock Market Closes In on $10 Trillion Milestone After Its Biggest Crash.  

• Singapore Slumps Into Recession With 41.2% Fall in Quarterly GDP.
• WHO Says Pandemic to Linger; Cases Pass 13 Million: Virus Update.

• Asian Stocks Look Set to Follow U.S. Shares Lower: Markets Wrap. Asian stocks slipped Tuesday, following their U.S. peers lower amid fresh Sino-American tensions and concern over the economic impact of rising coronavirus cases. Crude oil fell. Shares in Tokyo, Sydney and Seoul saw modest declines. S&P 500 Index futures edged up after the benchmark briefly touched its highest since the pandemic sell-off in March, before closing lower. The Nasdaq hit another record before finishing in the red. Sentiment was hit on signs the virus is throttling reopening plans in states like California, and on news the Trump administration rejected China’s expansive claims in the South China Sea. Treasuries and the dollar were little changed. S&P 500 futures rose 0.1% as of 9:07 a.m. in Tokyo. The S&P 500 Index dipped 0.9%. Topix index fell 0.4%. Australia’s S&P/ASX 200 Index declined 0.5%. Kospi index fell 0.5%. Hong  Kong’s Hang Seng Index futures earlier rose 0.4%.  

• Oil Extends Slide on Signs OPEC+ Will Begin to Taper Output Cuts.  

• Wary China Consumer, U.S. Recovery Hit, Global Outlook: Eco Day.
• McConnell Says GOP Will Pitch Its Own Stimulus Plan Next Week.
• Ten Thousand Day Traders an Hour Are Buying Tesla Shares.
• Amateur J.C. Penney Traders Beg Judge to Save Them From Wipeout.

Wall Street Journal:

• Jumbled Covid-19 Border Rules Baffle Companies, Stymie Tourism.

• The Case for Reopening Schools.

• Blank-Check Boom Gets Boost From Coronavirus.

• SoftBank Explores Sale or IPO for Chip Designer Arm Holdings.

• U.S. 12-Month Deficit Tops $3 Trillion as Virus Stimulus Spending Soars.

• U.S. Rejects Most Chinese Maritime Claims in South China Sea.

MarketWatch.com:     

• Online food prices jump as food companies struggle to meet demand.

• Big Tech’s latest reckoning is coming as it continues to rack up record valuations.

Zero Hedge:    

• New Court Filing: Ghislaine Maxwell 'Fled' Across House During Raid; FBI Found Tin Foil-Wrapped Cell Phone.

• California Orders Bars, Gyms & Indoor Dining To Close In Biggest COVID-19 Reopening Rollback Yet: Live Updates.

• The Left's "Boycott" Of Goya Has Backfired Spectacularly As Conservative Customers Clean Out Store Shelves.

• Save America From Cancel Culture.

• Demographics, Debt, & Disappointment - The Japanifation Of America's Economy.

• Mobile Trading Surges In India As Retail Joins Stock Market Party.

• COVID-19's "Inconsistent Nature" Confuses Us All.

• Parents Are Paying $50,000 To Reserve Spots At NYC Private Schools Even Though Kids May Never Attend.

• Scientists Discover That One Big Assumption That Everyone Has Been Making About COVID-19 May Be Dead Wrong.

• How Do We Change The Leadership Of Our Quasi-Sovereign Big-Tech Neofeudal Nobility?

• Kaplan Spoils Big-Tech Buying-Bonanza As Pandemic Gets "Worse & Worse & Worse".

The Epoch Times:

• Chinese Economy Faces ‘Unprecedented’ Challenges Amid Pandemic, Top Official Admits.

Digital Blackboard:

• Daily New Cases by Region.

Worldometer:

• New Cases/Deaths by state.

Rt Covid-19:

• How fast virus is growing by state.

KFF:

• State Data(Tests/Hospitalizations).

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 80.25 +1.0 basis point.

• China Sovereign CDS 45.75 -1.5 basis points.

• Bloomberg Emerging Markets Currency Index 60.63 -.01%.

• FTSE 100 futures -.98%.

• S&P 500 futures +.24%.

• NASDAQ 100 futures +.41%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (C)/.27

• (DAL)/-4.15

• (FAST)/.36

• (JPM)/1.23

• (WFC)/-.10

After the Close:

• None of note

Economic Releases
6:00 am EST

• The NFIB Small Business Optimism Index for June is estimated to rise to 97.8 versus 94.4 in May.

8:30 am EST

• Real Avg. Weekly Earnings YoY for June.   

• The CPI MoM for June is estimated to rise +.5% versus a -.1% decline in May.

• The CPI Ex Food and Energy MoM for June is estimated to rise +.1% versus a -.1% decline in May.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Brainard speaking, Germany CPI report, UK GDP report and the US week retail sales reports could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are lower, weighed down by technology and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing modestly lower. The Portfolio is 25% net long heading into the day.