Welcome to Tuesday’s Morning Coffee Break – History repeated itself as the Dow Jones dropped for the 15^th Monday out of 16^th weeks.  U.S. futures are suggesting positive opening in early electronic trading with the Dow Jones fair value at 18.08, S&P 500 fair value 1.66 and the NASDAQ’s fair value coming in at 4.12.Although focus will remain on the euro zone and Spain’s debt crisis market participants will receive several economic reports today.  At 9 a.m. ET the S&P/Case-Shiller Home Price Index with analysts looking for a 1% boost in July compare to the previous July. The at 10 a.m. ET market participants will receive the Conference Board’s September Consumer Confidence Index with analysts expecting move higher from previous months of 60.6 to 65.0 for the month of September.

Morning Coffee Break Global Markets Watch

Asia

Asian markets overnight were broadly lower on continuing concerns of global growth as market participants begin to price in the ever growing need for stricter monetary policy.  This sentiment pushed commodity, fright companies and construction companies lower.

Most notably lower overnight was Japan’s NIKKEI index as equities vacillated between gains and losses on concerns many major firms set to begin trading without the rights to latest dividend payouts in tomorrow’s session.

Analysts in Asia are pointing the blame of Asia’s growth outlook slowing on the Federal Reserve policy easing new round of easing (QE3) as it will force central banks to tighten to help cool the building inflationary concerns.

Europe

Soraya Saenz de Santamaria, Spanish Deputy Prime Minister commented today that Spain’s pensions will be raised next year. However, Ms. Saenz de Santamaria did declined to specify by how much or how when asked but did say the increase would keep up with inflation.

Spain’s borrowing cost did jump today when the Spanish government sold 3.983 billion euros ($5.15 billion) in 3 month Treasuries, according to officials.

Emerging Markets

India’s equity markets continued to consolidation for the second session in a row overnight Tuesday. One bright spot for India’s market participants as well as U.S. market participants came after Liquor baron Vijay Mallya-led United Breweries group confirmed today that Diageo Plc (DEO, quote), it’s in talks to buy a stake in the company.  This will give Diageo access to a large and growing liquor market in the emerging market of India.  Diageo will also get access to several local liquor brands.

Morning Coffee Break Companies To Watch

(BRK, quote) has exercised warrants it acquired earlier this year for Media General (MEG, quote).  Berkshire Hathaway received a 17% stake in the company when it provided $445 million in financing to the Media General.

Carnival (CCL, quote) is scheduled to report quarterly earnings before the bell.  It will provide insight on the industry is recovering from the mishap in Italy as the earnings report should reflect the majority of cruise season in the U.S.

Caterpillar (CAT, quote) cut its 2015 earnings forecast citing slower than expected economic recovery. Caterpillar says it now expects to earn $12 — $18 per share for 2015 compared to the previous forecast of $15 — $20 per share.  Caterpillar is the name to watch at the open.

Oneok (OKE, quote) earnings are expected to climb by 19 percent in 2013, citing new projects being placed into service by the Energy Company as well as greater volumes for its publicly traded natural gas subsidiary, Oneok Partners (OKS, quote).

Futures and Commodities Corner

Crude Oil

Oil futures are moving higher slightly in early electronic trading today ahead to weekly U.S. supply data and economic reports.   The gains help stem off losses during the euro zone session as fear over European debt became the main focus in markets again sending crude oil to the its lowest price in 7 weeks.

Be sure to check out the Daily Energy Report for a compressive look at the global energy markets by Tom Pawlicki.

Equity only readers can gain exposure to WTI Crude Oil through the United States Oil Fund (USO, quote) ETF that seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The USO will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. It may also invest in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil.

Gold

Gold prices are drifting higher in early trading as gold bugs look ahead to the U.S. economic calendar today. Gold despite the last several days of consolidation is up roughly 5% for the month of September.  Gold demand typically climbs in the fourth quarter in emerging markets of India and China as consumers buy gold for festival celebrations and weddings.  India and China make up the world’s two largest consumer buyers of the shiny metal.

Equity only readers gain exposure to the gold through the SPDR Gold Shares Trust (GLD, quote) ETF that seeks to replicate the performance, net of expenses, of the price of gold bullion. The GLD trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets.

Crude Oil	$92.85	+0.92	+1.0%
Gold	$1766.80	+4.60	+0.26%
Wheat	$893.50	+1.50	+0.17%
Corn	$746.00	+1.25	+0.17%
Live Cattle	$128.40	UNCH	UNCH
Lean Hogs	$75.35	UNCH	UNCH
Treasury Bond	148.0938	+0.50	+0.34%
10yr Note	133.1094	+0.1875	+0.14%
2yr Note	110.1953	UNCH	UNCH
U.S. Dollar Index	79.53	-0.045	-0.06%
			As of 8:17 a.m. ET

The Morning Coffee Break Bottom Line

U.S. markets seem to want shrug off yesterday’s options hangover.  Look for the U.S. economic calendar drive the majority of the stock market direction.  Be sure to keep an eye on Diageo Plc (DEO, quote) and its deal with India’s largest drink company.  Anyone looking clarity in the energy markets can now find the Energy Report here on CurveAheadMarketStrategies.com.

Watch the reaction to growth commodities into and after the economic data releases as it should provide the most insight of what is to come.