Market Alert - Pre-Market

Futures vs FV: SP -5.37; DJ -45.76; NASDAQ -10.72

Futures are muddling slightly lower as the market mulls the Yellen comments, prepares for more, and looks at the OPEC oil deal and US data.

Oil: Giving back some of the large gain Wednesday as is usually the case after a day of outsized gains.


GDP Q2 final: 1.4% vs 1.3% exp vs 1.1% initial. Q1: 0.8%

Consumer spending up, adding 200% to the bottom line GDP reported.
Food and beverage rose, Services up (healthcare, housing utilities). All the things a family does not need to go up.

Inventory Investment: Declined, and without this decline GDP would have shown a 2.6% print.

Corporate Profits: -0.6% versus 3.4% in Q1.
Corp profits -4.3% over last 4 quarters!

12 month Real GDP: Falls to 1.28%
2016: Based on NY Fed Q4 expectations, 2016 GDP will be 1.4%, the slowest GDP growth since the financial crisis.


Earnings beats: PEP; ACN
Misses: CAG (TL)
In Line: PIR (an inline loss)


Fed: Yellen at the Senate. George met with Liesman on CNBC this morning. Dissenter. Basically feels employment is good enough in the right areas even though it lags in others to raise rates.


OTHER MARKETS
Bonds: 1.58% vs 1.569%

EUR/USD: 1.206 VS 1.2148

USD/JPY: 101.72 vs 101.322

Oil: 46.95, -0.10

Gold: 1325.5, -3.2


Again, futures are sloppy, trading lower after the Wednesday gains. Really not a big deal as a slightly lower open is nothing bad in an ongoing uptrend. NASDAQ, SOX, RUTX are in their same uptrends. DJ30, SP500, SP400 are not in their short term upside trends but are in the medium and longer term trends. In that situation softer opens are not anything that nefarious.

We will see what bids return and where. DJ30, SP500 attempting comebacks, the small and midcaps rejoined Wednesday. 2 days down post-FOMC, 2 days back up. Recovering, and the upside wants to see the bids return after the lower open and continue that recovery and keep the uptrends working.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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