Tuesday Watch

Evening Headlines

Bloomberg:           

• China Tensions Spill Over as Europe Moves Toward Biden’s Side.
• South Korea’s Inflation Accelerates to Fastest Since 2017.  
• China’s UN Envoy Calls on Biden to Ease North Korea Pressure.
  
• It’s Not Just India. New Virus Waves Deluge Developing Countries.
  
• Mexico Hits Remittances Record in March as U.S. Stimulus Flows.
• Stocks in Asia to Open Up; Dollar, Yields Declined: Markets Wrap.
• Oil Rises With Growing Reopening Efforts Offsetting Virus Surge.
• Commodities Reach New Highs on Rosy Oil-Demand Outlook.
• NYSE Eases Restrictions; U.S. Cases Slow: Virus Update.
• KKR Raises $18.5 Billion for Latest North America Buyout Fund.  
• NYSE Says More Staff Can Return to Trading Floor If Vaccinated.
• Corporate America Rides Wave of Inflation to Record Profits.  
• N.Y. Region to End Capacity Restrictions; All-Day Subway Returns.  
• Chipmaker Drop Clashes With Transport Stocks as Market Signals.  
• Treasury Quadruples Borrowing Estimates to Pay for Stimulus.

Wall Street Journal:

• Treasury Expects to Borrow $1.3 Trillion in Second Half of Fiscal 2021.
• Biden’s Stimulus for the IRS.
• Apple Accused of Monopolistic Practices in Trial.
• Auto Makers Retreat From 50 Years of ‘Just in Time’ Manufacturing.
• Next Generation of Covid-19 Vaccines Could Be a Pill or Spray.
• Lumber Prices Break Records.
• Youth Pay a High Price for Covid Protection.
• Biden’s Daycare Plan Is Bad for Families.

Fox News:

• NO FILTER: Children give Biden brutally honest answers when asked about virtual learning.
• Most Portland riot suspects will not be prosecuted: US attorney.
  

CNBC.com:

• Fed’s Barkin sees higher inflation this year, but then a reversal in 2022.
• Stocks making biggest moves after the bell: Under Armour, Mosaic, XPO Logistics.
• Wealthy may face up to 61% tax rate on inherited wealth under Biden plan.
• Jim Cramer says these outdoor plays are a buy as the economy reopens.
• FDA expected to approve Pfizer Covid vaccine for teens within the week.
• Florida Gov. DeSantis suspends Covid restrictions: ‘We are no longer in a state of emergency’.
• Some couples may face a ‘marriage penalty’ under Biden’s tax plan.

MarketWatch.com:      

• The stock market is ‘inching toward euphoria,’ warn analysts at B. of A.  
• The world risks ‘running out of copper’ — and here’s how high prices may rise as the economy reopens, BofA warns.

Zero Hedge:

• Liquidity Tsunami Ends With A Bang: Treasury Expects Just $100BN In Cash Injections Next 2 Months.
• JPM: Biden's Infra Bill Faces Enough Dem Opposition That It Will Be Materially Lower Than $4 Trillion. 
• Tanker Truck Driver Shortage May Fuel Higher Gas Prices This Summer.
• States Offer Beer, Cash Incentives As Vaccine Demand Softens.
• Bill And Melinda Gates Getting Divorce.
• The Supreme Court Case That Could Change Everything For US Pipelines.
• Peruvian Presidential Front-Runner Says He'll Seize 70% Of Profits From Overseas Businesses.
• Biden Tells Mossad Chief US 'Not Close' To Deal While Iran Says Sanctions About To Be Lifted.
• Here Are The Best Performing Assets In April And YTD.
• Vaccine Passports Are Coming To Sports Venues.
• Biden Hikes Refugee Admission Cap To 62,500 After Outcry From Progressives.
• Crypto & Gold Jump As Dollar Dumps, Stocks & Bonds Rise.

Newsmax:

• Climate Czar John Kerry Raked in Millions from Energy Sector Before Taking Job. 
• Harris Slammed for Neglecting Border Crisis.
  

TheGatewayPundit.com:

• EXCLUSIVE: Spy Plane Identified Circling the Arizona Veterans Memorial Coliseum Where the Election Audit Is Taking Place – What’s Going On?
• More Democrat Insanity: Green New Deal Mastermind Claims Saving the Planet Requires Eliminating Police and Changing Power Relationships.
•  n Effort to Bypass Spy Warrants, Biden Admin to Partner with Private Firms to Surveil So-Called ‘Domestic Terrorists’ Online.
• President Trump Releases EXPLOSIVE Message: “The Fraudulent Presidential Election of 2020 will be, From this day forth, Known as THE BIG LIE!”.

The Epoch Times:

• Evidence Reveals That Military Team Collaborated With Lab Where COVID-19 Pandemic Originated.
• TSMC’s Plan to Boost Chip Production in Chinese Factory Met With Opposition.

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 -.25% to +.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 78.75 -1.5 basis points.

• China Sovereign CDS 36.0 -1.25 basis points.

• Bloomberg Emerging Markets Currency Index 60.80 -.04%.
• Bloomberg Global Risk-On/Risk Off Index 3,150.0 +1.0 point.
• Volatility Index(VIX) futures 21.61 +.27%.
• FTSE 100 futures +.35%.

• S&P 500 futures -.20%.

• NASDAQ 100 futures -.25%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (BG)/1.48
• (COP)/.48
• (CMI)/3.51
• (CVS)/1.71
• (D)/1.05
• (DD)/.76
• (ETN)/1.22
• (EXPD)1.02
• (FSS)/.34
• (GPN)/1.79
• (IDXX)/1.72
• (LDOS)/1.47
• (LPX)/2.60
• (MLM)/.55
• (PFE)/.78
• (SAGE)/-1.63
• (SEE)/.72
• (SYY)/.21
• (UAA)/.04
• (VSH)/.38
• (VMC)/.45
• (ZBH)/1.52
  

After the Close:

• (ATVI)/.70
• (AKAM)/1.30
• (ANET)/2.38
• (CZR)/-1.74
• (COHR)/1.14
• (HLF)/1.09
• (HST)/-.15
• (H)/-1.29
• (JAZZ)/3.65
• (LSCC)/.19
• (LYFT)/-.55
• (PKI)/3.01
• (PAA)/.26
• (PRU)/2.65
• (VECO)/.23
• (XLNX)/.78
• (ZG)/.25
  

Economic Releases

8:30 am EST

• The Trade Deficit for March is estimated to widen to -$74.4B versus -$71.1B in Feb.
  

10:00 am EST

• Factory Orders for March is estimated to rise +1.3% versus a -.8% decline in Feb.
• Factory Orders Ex Transports for March is estimated to rise +1.8% versus a -.6% decline in Feb.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The US weekly retail sales reports, Truist Life Sciences Summit, Oppenheimer Industrial Growth Conference, (F) April sales release, (MYGN) investor day and the (UNP) investor day could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are modestly lower, weighed down by technology and consumer shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.