Market Alert - Pre-Market

Futures vs FV: SP +0.17; DJ +6.01; NASDAQ -7.84

Well, futures are at least flat following another low volume upside session, avoiding an immediate selloff at the open. Of course there was only one new high from SOX, so the 'sell the new highs' program may not be in place today. Thus the market heads for a muddled open with NASDAQ lagging thanks to an EU ruling it owes over $14B in taxes.

Yes, the EU in its collectivism and 'individuality is fine if we all do the same thing' ways has ruled that Ireland wrongly gave AAPL 13.2BEUR tax breaks, resulting in "undue tax benefits" from 2003 to 2014. Strapped for cash, the EU apparently wants to drive the entirety of the island nations out of its grasp. It is about to lose several northern EU countries over the immigration issue. At some point people get tired of being dictated to by the elite. The US has swung to an oligarch and this election cycle shows the rumblings in the land as a result.

But I digress. The upshot of the EU ruling is AAPL is hit with a big tax bill that it will have to pay if it is to keep selling in the EU countries. Thus AAPL is lower pre-market and so is NASDAQ.

Fed: Fischer can't keep his mouth shut. None of them can, for that matter. He says the US is close to full employment. A mother's work is never done, and Fischer says the "work of a central bank is never done" in some kind of sick bastardization of the Fed's mandate. It should be that a central bank's work is only occasional. But the Fed has expanded its power to economic micromanagement and it won't let it go without being forced to by Congress. Oh yea, THAT will happen.

Case/Shiller shows June housing +5.1%. Just what does this report mean anyway? When you have to have the authors come onto the show and explain what 5.1% means then you have issues with your reporting.

Sales: ANF reported its 14th straight month of SSSales declines. GIII (apparel) missed on earnings. DWS (shoes) beat top line.


OTHER MARKETS
Bonds: 1.585 vs 1.57%

EUR/USD: 1.1154 VS 1.1187

USD/JPY: 102.46 vs 101.87

Oil: 47.34, +0.36

Gold: 1321.80, -5.30. Continues to struggle post-Fed member comments last week.


Futures are stumbling laterally toward the open. No immediate selloff as noted, FB jumped higher Monday. Perhaps the non-AAPL FANG/NASDAQ big names can pick up the slack and provide some leadership they have been trying to show. Will watch that group.

Also watching biotechs and software as they have weakened; can they rebound?

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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