Futures vs FV: SP -5.04; DJ -2.05; NASDAQ -14.78
NFLX subscribers disappointed and the stock is lower, helping cast a somewhat downbeat mood at the open. Other earnings are mostly good, if you consider bottom line beats on salary cuts, bonus cuts, and other cost-cutting as good. It is, alas, the continuing story of earnings season as most companies use cutting as a way of showing 'growth.'
Beats: JNJ; IBM (bottom line); GS (bottom line); LMT
Misses: YHOO (TL)
Warnings: SMCI cuts its guidance
A softer open, particularly a modest one as this, is often a good respite for a market on the ascent.
June Housing Starts: +4.8%. Not bad though it took some hefty revisions lower in May to pump up the June gain (1.13M in may versus 1.16M originally reported).
Year/year: -0.2%, down now 2 of 3 months. That trend is heading in the wrong direction as are many data points viewed on a year/year basis.
Not going to parse it too much. The headline data is better on another report; no surprise there as it is an election year.
Building Permits: 1.5% versus 0.5% May
OTHER MARKETS
Bonds: 1.568 vs 1.59% 10 year
EUR/USD: 1.1016 vs 1.1075
USD/JPY: 106.47 vs 106.15. Dollar a big stronger.
Oil: 45.21, -0.03
Gold: 1329.60, +0.30
Futures gapped lower at the early open and have recovered half of the loss, showing a bit of resilience on a dip. Again, a rather modest dip at the open is something we may be able to use on some of the plays we are looking at. Have some in solid patterns ready to move and some big names that are ready to move and in not too bad of patterns either. A bit of a test and we will see when the buyers return.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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