10 things you need to know before the opening bell

Here is what you need to know.

Trump is reportedly considering a massive tax cut that would benefit investors. President Donald Trump is considering tweaking the tax code to allow investors to index their capital gains to inflation, The New York Times reports.

China’s economy is starting to sputter. China’s official manufacturing and nonmanufacturing PMI data missed expectations but remained above the 50 level – indicating the sectors are still expanding.

The Bank of Japan tweaks policy. Japan’s central bank on Tuesday introduced a forward guidance on policy rates, more flexibility in bond purchases, and tweaks to its stock exchange-traded-fund purchases, but none led to any substantial moves in Japanese markets.

Traders have never been more scared of a meltdown in tech stocks. A measure called skew, or the premium options traders are paying to protect against a loss in the PowerShares QQQ Trust exchange-traded fund over the next month, relative to wagers on an increase, has spiked to its highest level on record.

Morgan Stanley says the stock market is heading for its biggest sell-off of the year. Michael Wilson, the bank’s chief equity strategist, says the market is trapped in a “rolling bear market” and offers some tips to protect your portfolio.

MoviePass holds an all-hands meeting to announce that some big movies won’t be available on the app. After shares cratered below $US1 apiece on Monday, MoviePass CEO Mitch Lowe held an all-hands meeting to announce that the coming big releases “Christopher Robin” and “The Meg” would not be available to subscribers, a source familiar with the matter told Business Insider.

Netflix tumbles into a bear market. Shares fell 5.7% on Monday and are now down 20.85% from their June high.

Stock markets around the world trade mixed. Hong Kong’s Hang Seng (-0.52%) lagged in Asia, and London’s FTSE (+0.18%) leads in Europe. The S&P 500 is set to open up 0.14% near 2,807.

Apple reports after the closing bell. The tech giant is expected to earn $US2.16 a share on revenue of $US52.31 billion, according to analysts surveyed by Bloomberg. Pfizer and Procter & Gamble are among the other names reporting Tuesday.

US economic data keeps coming. Personal income and spending and PCE core prices will be released at 8:30 a.m. ET before S&P home prices, Chicago PMI, and consumer confidence cross the wires at 9 a.m. ET, 9:45 a.m. ET, and 10 a.m. ET. The US 10-year yield is down 3 basis points at 2.95%.

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