Friday Watch

• Trump Promises Talk on Trade After China Defers Tariff Response.

• U.S. Chamber Calls for Halting China Tariffs and Resuming Talks

• U.K. and EU to Step Up Brexit Talks as Parliament Showdown Looms.

• Stocks Climb on Trade Optimism; U.S. Yields Steady. Stocks in Asia tracked a U.S. rally after China indicated it wouldn’t immediately retaliate against the latest American tariff increase. Treasuries steadied. Shares in Tokyo, Sydney and Seoul advanced on the final trading day of a tumultuous month dominated by the trade war. Earlier, the S&P 500 Index rose for a second day after a spokesman for China’s commerce ministry said that escalating the conflict won’t benefit either side and that it was more important to discuss removing the extra duties. A gauge of the dollar remained near a two-year high. Futures on the S&P 500 Index dipped 0.1{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} as of 9:02 a.m. in Tokyo. The underlying gauge increased 1.3{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} on Thursday. Japan’s Topix index advanced 0.8{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6}. South Korea’s Kospi added 1{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6}. Australia’s S&P/ASX 200 Index rose 0.4{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6}.

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

• RBA Deficit Dilemma, Hong Kong Pain, Korea Rate Guide: Eco Day.

• Dorian Expected to Become Category 4 Hurricane on Way to Florida.

• New Miami Hurricane Hazard: Dockless Scooters as Projectiles.

• Uber, Lyft Pledge $60 Million to Possible Labor Ballot Fight.

• Americans Pushed to the Suburbs as City Prices Soar Out of Reach.

• Dell Rises After Strong Computer Demand Fuels Rosy Forecast.

Morning Preview Links

Earnings of Note
Company/Estimate

• (BIG)/.40

• (CPB)/.41

• (JKS)/.33

After the Close:

• None of note

Economic Releases
8:30 am EST

• Personal Income for July is estimated to rise +.3{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} versus a +.4{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} gain in June.

• Personal Spending for July is estimated to rise +.5{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} versus a +.3{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} gain in June.

• The PCE Core MoM for July is estimated to rise +.2{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} versus a +.2{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} gain in June.
  

9:45 am EST

• The MNI Chicago PMI for August is estimated to rise to 47.5 versus 44.4 in July.

Upcoming Splits

Other Potential Market Movers

• The Eurozone CPI report could also impact trading today.

BOTTOM LINE: Asian indices are higher, boosted 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 75{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} net long heading into the day.