Market Alert - Pre-Market

Futures vs FV: SP -8.27; DJ -59.05; NASDAQ -17.18

Stock futures opened lower and have basically moved in the same range since that open. Weakening a bit more ahead of the bell but no major changes.

It would appear a pullback may be in the offing given the increased SOX volatility (albeit in a very narrow range) and NASDAQ's stalling move. Of course, a lower open could be bought, if not by the entire market but then in certain areas that remain in good position and have not extended themselves on the prior move, e.g. biotechs.

Jobless claims: 264K vs 265K vs 268K prior (from 267K)
Okay, which report is accurate? Jobs report was horrid, the Fed says the labor market is deteriorating at the fastest pace since 2009. Obviously, the reports issued by the government do not accurately tell the true state of the labor market because the labor market is now different from what it has ever been: a market of low-wage, hourly jobs where people need 2 or 3 jobs not to be even with where they were, but to make ends meet.

Rates: Bank of Korea issues a surprise rate cut to 1.25% from 1.50%.

China CPI: -0.5% vs -0.2% prior. Year/year: 2.0% vs 2.3% prior

Japan Core Machinery Orders: -11.0% vs -3.8% exp vs 5.5% prior. -8.2% year/year vs -3.2% prior

See, great data . . .

ECB: Bond buying started, and almost immediately the ECB was buying junk bonds when it originally said it would only buy investment grade bonds. Why? Because there are not that many investment grade bonds out there in the EU.

Sentiment: The bears are still there and some are louder even as the some bipolar financial station experts have bought n 100% to this upside as being something that will last. Hey, big bears help keep a rally moving.

George Soros is taking big bearish positions. GS is reiterating its bearishness, saying July is on for a rate hike. DB predicts social unrest in Europe if the ECB does not stop its madness.


OTHER MARKETS
Bonds: 1.673% vs -1.70%. Bonds are surging. What happened to the great economy? Ready to breakout to a higher high if this keeps up.

EUR/USD: 1.1329 vs 1.1396

USD/JPY: 106.616 vs 107.033. Dollar off versus the yen once again.

Oil: 50.61, -0.62. Immediately back below 51/bbl after breaking it Wednesday. A bit too fast to the upside, particularly with all of the 'great' economic news.

Gold: 1261.20, -1.10. At least gold is off a bit after surging.


Futures are edging up off the morning lows toward the open and we will see if bids return. Not necessarily expecting it, at least not across the board. A good run, a bit tired. Will see if we can take some gain in EVHC on its gap and elsewhere if possible.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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