Friday Watch

Evening Headlines

Bloomberg:              

• Europe Passes U.S. in New Covid Cases, Returning as Hot Spot.
• Rio CEO Will Step Down After Pressure Over Heritage Site Blasts.
• Asia Stocks to Drop After U.S. Retreat; Dollar Up: Markets Wrap. Asian stocks headed for a second week of losses as a fresh selloff in U.S. megacap technology shares highlighted the lingering concern over valuations in certain pockets of the market. Treasuries and the dollar were steady. Japanese shares opened modestly lower along with those in South Korea and Australia. S&P 500 contracts nudged higher. In a topsy-turvy U.S. session, the Nasdaq lost more than 2% amid lingering worries that ma five-month rally stretched valuations too far. Crude dropped back toward $37 a barrel in New York. S&P 500 futures added 0.4% as of 9:18 a.m. in Tokyo. The index fell 1.8% on Thursday. Japan’s Topix index declined 0.1%. South Korea’s Kospi index slid 0.1%. Australia’s S&P/ASX 200 Index dropped 1%.
• Five Things You Need to Know to Start Your Day.
• Economic Rebound Becomes More Fragile With U.S. Aid on Brink.
• Fiscal Stimulus Chances Fade, With Republican Bill Blocked.  
• Smithfield's $13,000 Fine in Deadly Covid Outbreak Called ‘Paltry’ by Critics.
• Gundlach Says High-Yield Bond Defaults May Almost Double.  
• Hedge Funds Bought the Dip as Nasdaq Tumbled Into a Correction.  
• Options Mania and Real-World Risk Mean Volatility Here to Stay.

Wall Street Journal:

• Citi’s Fraser to Be First Woman CEO of Big Wall Street Bank.
• What’s Biden’s New China Policy? It Looks a Lot Like Trump’s.
• Several Covid-19 Vaccines Could Join Winner’s Circle.
• Democrats Filibuster Covid Relief.
• What Islamists and ‘Wokeists’ Have in Common.
• Rubio Seeks Security Review of Chinese Bid for GNC.
• EU Demands U.K. Scrap Proposal That Would Breach Brexit Deal.
  

Fox News:

• Cell phones of members of Robert Mueller's team were purged during Trump probe, DOJ records show.
• Trump again suggests on drugs involved in Biden primary debate.
• CEOs urge de Blasio to crack down on crime, clean up streets.
  

CNBC.com:

• Jim Cramer says ‘It’s good to have some cash’ as markets face a rough month.
• Peloton crushes estimates as sales surge 172%, expects strong demand to continue into 2021. 
• How Trump v. Biden could be Bush v. Gore ‘on steroids’.
• Stocks making the biggest moves after hours: Peloton, Oracle, Chewy & more.

MarketWatch.com:       

• Fiscal stimulus prospects at dead end after Senate vote, a top Republican says. 
• Oracle stock rallies as results top Wall Street estimates.

Zero Hedge:

• Mueller's 'Angry Democrats' Scrubbed Cell Phones After Russia Investigation.
• Trump Insists TikTok Sale Deadline Won't Be Extended.
• Our System Is Crumbling Right In Front Of Our Eyes.
• What Possible Disruption Is Coming That Requires China To Start Massive Stockpiling Of All Possible Commodities.
• Jets Wide Receiver Charged With Stealing $1.2MM In PPP Funds, Blowing It On Jewelry And Gambling.
• NYTimes' 1619 Project Author Says Founding Fathers "Did Not Believe In Democracy", America Is "Not An Exceptional Nation".
• JPM Becomes First Wall Street Bank To Demand Traders Return To The Office.
• Brexit Butterflies & Bailout Bill Breakdown Crush Cable, Bust Big-Tech Bounce.

The Epoch Times:

• National Security Advisor: China Actively Interferes in US.
  

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 -1.0% to -.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 59.5 +.75 basis point.

• China Sovereign CDS 37.25 +.5 basis point.

• Bloomberg Emerging Markets Currency Index 60.51 +.03%.
• Bloomberg Global Risk-On/Risk Off Index 51.0.0 +7.0 points.
• Volatility Index(VIX) futures 32.80 +.38%
• FTSE 100 futures -.46%.

• S&P 500 futures +.44%.

• NASDAQ 100 futures +.55%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (KR)/.54
  

After the Close:

• None of note
  

Economic Releases

8:30 am EST:

• The CPI MoM for August is estimated to rise +.3% versus a +.6% gain in July.
• The CPI Ex Food and Energy MoM for August is estimated to rise +.2% versus a +.6% gain in July.
• Real Avg. Weekly Earnings YoY for August.
  

2:00 pm EST

• Monthly Budget Statement for Aug. is estimated to widen to -$235.4B versus -$200.3B in July.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China Money Supply report, Goldman Biotech Symposium, Bloomberg Sept. US Economic Survey and the UBS Covid-19 Vaccine Symposium could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are modestly lower, weighed down by technology and commodity shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.