Tuesday Watch

Today's Headlines

Bloomberg:        

• A Bubble Scarier Than Big Tech Is Brewing in China.  
• Australia’s Last Two Reporters in China Flee Amid Tensions.
• Japan’s Record GDP Plunge Is Slightly Worse on Revision.
• Singapore Faces Test as Virus Re-Emerges in Workers’ Dorms.
• Germany Ready to Link Gas Pipeline With Russian Navalny Response.
• Competing Pressures Build on U.K.’s Johnson as Covid Surges.
• Australian Wheat Production Seen Jumping 91% on Plentiful Rains.  
• Asian Stocks Rise; Pound Hit by Brexit Discord: Markets Wrap.
• European Stocks Gain; Pound Hit by Brexit Discord: Markets Wrap.
• Oil Extends Drop After Saudi Price Cuts Underline Demand Concern.
• Trump Threats, Pipeline Punishment, Divorce Discord: Eco Day.

Wall Street Journal:

• FBI Sweep of China Researchers Leads to Cat-and-Mouse Tactics.
• Sudden Volatility in Technology Stocks Unnerves Investors.
• Colleges Send Students Home Amid Outbreaks, Raising New Threat.
• Samsung, Verizon Sign $6.65 Billion 5G Contract.
• SoftBank Shares Drop on Concerns About Massive Options Bet.
• Companies Brace for Profit Hit From Euro Rally.
• China Exports Are Booming and Trade Surplus Is Widening—Why Is the Yuan Weak?
• Portlanders Reflect on the City’s Protests, 100 Days On.
• Immigration to New York City Declines, Amplifying Economic Concerns.
• Will Courts Pick the Next President?
• China to Launch Initiative to Set Global Data-Security Rules.
• Citigroup Feuds With Hedge Funds Over Botched Payment.

Fox News:

• Gender reveal party sparked wildfire now burning 7,000 acres in California.
• Protesters gather outside Nancy Pelosi's home, hang up hair curlers.
• SEE IT: Gunfight in Brooklyn apartment lobby caught on video as violence escalates.
• What conservative filmmaker says recent riots mean for America's future.
• Expert warns China's military wants to 'kill Americans'.

CNBC:

• China accuses U.S. of ‘hegemony’ over potential restrictions on chipmaker SMIC.
• ‘We’re certainly in a bubble,’ strategist warns — but don’t expect it to pop anytime soon.
• 9 retailers that are avoiding the industry’s shakeout and opening stores.
• Goldman’s ‘favorite’ commodity has been on a tear, and could have further to run.
• SMIC, China’s largest chipmaker, plunges 23% after U.S. says it could blacklist the firm.
  

Zero Hedge:

• SoftBank Has Closed Most Of Its "Nasdaq Whale" Positions.
• Beijing Delays Visas For Journalists From WSJ, CNN & Bloomberg As President Xi Cracks Down On Dissent.
• Rabo: While Everyone Is Handing Out Stimulus To Prop Up Demand; China Has Been Propping Up Supply.
• US Ambassador To France Denies Atlantic Story, Says Trump 'Has Never Denigrated Any Member Of US Military'. 
• Platts: 5 Commodity Charts To Watch.
• Trump Mulls Decoupling US From China: "If Biden Wins, China Will Own This Country"
• Goldman Warns Of "Near-Term Setback" For Stocks As Record Bullish Nasdaq Sentiment Suffers Near-Record Shock.
• 787MAX? Production Woes Strike Boeing Dreamliner.
• NYC Commercial Real Estate Sales Plummet 54% To Lowest On Record.
• American Airlines Faces Backlash After Allowing Employees To Wear BLM Pins.
• Is China On The 'Brink' Of A Major Food Shortage? 
• Surveillance Camera Captures 'Huge Pile Of Mail' Dumped In California Parking Lots.
• Crude Hits 2-Month Lows As Saudi Price Cuts Signal Demand Woes.
• Lockdown 2.0 - "There's Going To Be Hell To Pay".
• "The Correction Has Further Room To Go": Futures Recover Early Losses As European Markets Jump.
• France Again Being Forced To Stimulate Is Bad News.
• The Coming Coup.
• China "Parties Like It Is 2019" As Patrons Pack Pool Parties, Nightcubs & Bars From Wuhan To Beijing.  
• Texas AG: The State May Take Over Austin's Police To Prevent Defunding.
• A Few Of The Many Reasons To Celebrate The United States.
  

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 indices are +.25% to +.75% on average.
• Asia Ex-Japan Investment Grade CDS Index 58.25 -.25 basis point.
• China Sovereign CDS 35.0 -1.0 basis point.
• Bloomberg Emerging Markets Currency Index 60.48 -.07%.
• Bloomberg Global Risk-On/Risk Off Index 30.0 -2.0 points.
• Volatility Index(VIX) futures 36.55 +1.0%. 
• Euro Stoxx 50 futures unch.
• S&P 500 futures +.38%.
• NASDAQ 100 futures -.24%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (SINA)/.50
• (WB)/.46
  

After the Close:

• (ABM)/.42
• (CASY)/2.00
• (COUP)/.08
• (HQY)/.28
• (HTZ)/-3.48
• (LULU)/.54
• (WORK)/-.03

Economic Releases
6:00 am EST

• The NFIB Small Business Optimism Index for August is estimated to rise to 99.0 versus 98.8 in July.
  

3:00 pm EST

• The Consumer Credit report for July is estimated to rise to $12.9B versus $8.948B in June.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The German Trade Data report, 3Y T-Note auction, Citi Tech Conference, Barclays Consumer Staples Conference, Citi BioPharma Conference, Barclays Energy-Power Conference, (AAPL) special iPhone event and the (EFX) investor update could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST

BOTTOM LINE: Asian indices are mostly higher, boosted by financial and consumer 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 week.