Market Alert - Pre-Market

Futures vs FV: SP -8.78, DJ -80.45; NASDAQ -25.46

Futures are lower but are off the opening lows and trending slightly higher since that lower open. Still fairly significant losses.

The purported reasons: DB worries continue or even build as Merkel says there will be no bailout. Of course DB retorts it doesn't need any bailouts. That kind of makes you nervous; how many times did you hear that from banks during the financial plunge? DB is down 6% pre-market.

Other world markets are lower, particularly Europe, the home of DB.

Fed: Lacker talked to Fox Business and was again pushing for hikes, concluding the Fed needs to "get on with it." He did say that the US needed more cap investment to help increase productivity, and offered that he believes the regulatory environment has 'swamped' businesses. That is certainly part of the problem.

Profits: Set for sixth straight quarter of declining profits. Usually a recession indicator though this one is blamed on the drop in the oil sector for most of the down quarters.

Oil: Oil is rising as OPEC gets ready to meet and there are rumors of a production deal and others saying it is not going to happen. Gasoline prices in the US are up 0.04/gallon to 2.25.

Oh, and oil is up so why are stocks lower? I thought they went hand in hand . . .

M&A: CBOE buying BATS

Downgrades: DIS, TWTR

Upgrades: FL on JPM's focus list. So I guess we should focus on FL?

Syria: Peace deal is said to be wholly over as US accuses Russia of barbarism while the Russian UN envoy says there is no chance for peace.


OTHER MARKETS
Bonds: 1.599% versus 1.62% 10 year

EUR/USD: 1.1265 VS 1.12259

USD/JPY: 100.478 vs 101.045

Oil: 45.34, +0.86

GOLD: 1343.00, +1.30


Futures continue well below FV toward the open but are off their lows and trending modestly back upside. Not huge, but an upside trend is better for the index uptrends overall that are trying to hang on particularly on SP500, DJ30, SP400.

A new week with NASDAQ, SOX, RUTX providing leadership through Friday as their patterns still show uptrends and good overall technical action. Thus far rotation has provided leadership as money moves around but does not leave the market. The stage is set for some of that today as the market starts lower but is trying to recover lost ground toward the open.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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