Market Alert - Pre-Market

Futures vs FV: SP -4.96; DJ -38.48; NASDAQ +0.90

Futures have really turned off the morning lows. CPI was hot but INTC just came out with a raised Q3 revenue outlook and it appears futures turned on this information. Big company, products are in many things, and thus improvement in their outlook bodes improvement for other areas. So good is good now?

August CPI: 0.2% VS 0.1 VS 0.0. Year/year: 1.1%

Core CPI: 0.3% vs 0.2% vs 0.1%. Year/year: 2.3%
Highest core since 9/2008 (2.5%)
10 months of core CPI > 2%

GS: Cuts its outlook on SP500 and US bonds in its most recent bearish call.

DB: DOJ wants $14B fine for DB' involvement in the 2005 - 2007 mortgage underwriting.

Once again the DOJ operates a shakedown when the government wants more $

Irony: the banks were just doing the government's bidding in getting mortgages in the hands of people whose finances simply could not afford them. Bush administration started it then got cold feet, warning re Freddie Mac and Fannie Mae insolvency, but then the Congress picked up the torch with Bernie Frank and Schumer threatening banks with hellish audits if they did not make these loans available. So, the banks stepped in, gladly underwriting these and knowing they could sell them to the US. A very incestuous setup and all have unclean hands.

Earnings: ORCL misses bottom line.

BOJ: Abe advisor says the "positive aspects of negative rates are very big." For who? Certainly not for the populace. Only profligate, spendthrift governments like negative rates. Just who are they serving? If that is a question that needs to be asked these days: government serves government.

INTC: As reported above, INTC raises its Q3 guidance.


OTHER MARKET
Bonds: 1.689% vs 1.70% 10 year

EUR/USD: 1.1183 vs 1.1243

USD/JPY: 102.134 vs 102.149

Oil: 43.09, -0.82

Gold: 1315.40, -2.60


Futures continue recovering off the morning lows with a look very similar to Monday that started negative but futures were moving higher into the open and powered higher through the session.

EXAS, JWN trading flattish after upside on Thursday. Looking for an entry on those.

Will also watch how AMZN, MSFT and downside positions trade off this lower open.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
______________________________________
Alert Key
http://www.investmenthouse.com/alertkey.htm


Customer Support: http://investmenthouse.com/contact_us.php