Market Alert - Pre-Market

Futures vs FV: SP -5.13; DJ -35.96; NASDAQ -4.11

Stock futures trade at the morning lows, bouncing along in a range for the past 3 hours. No upside momentum toward the open, however, as the futures are falling to session lows versus trying to rise to the open. Thus a bit of a soft start as the indices try to regroup after an upside Monday but an upside that saw the indices give up pretty sizeable intraday gains.

No real 'ah ha' news story out there.

Oil: Weaker as the EIA reports a 600K bbl worldwide build in 2016. On top of that, questions arising about the OPEC deal. Output at a record high, some are dissenting, yet we are told there is a deal. Okay, typical OPEC. All is normal in the world.

Earnings: It is the season after all and some are coming out.
AA: Misses top and bottom line.
TWLO: Beats
STX: Raises its guidance, gets an upgrade as a result.
ILMN: Lowers its guidance and simply gets bombed.

AAPL: Samsung has ordered the cessation of the Note 7. No production, telling users to turn them off and get rid of them. Reading the release it seems as if you should treat the phone as a live hand grenade: throw it as far as you can and take cover.

TWTR: Pulling out the Venezeual oil deal playbook, TWTR claims that CRM is still interested and wants to put in a bid. I hear McCormick spices may be interested as well. Just kidding. Trying to make a point as to the usefulness to CRM that a TWTR buy represents.


OTHER MARKETS
Bonds: 1.77% versus 1.723% 10 year

EUR/USD: 1.1081 vs 1.1136. Dollar continues its new run

USD/JPY: 103.71 vs 103.608

Oil: 51.14, -0.21

Gold: 1256.90, -3.50


Futures remain at the session lows but it is not the end of the world. This market likes to careen around in a variety of intraday moves. A rally to resistance gives the sellers a shot. A weaker open gives the buyers an opportunity.

Still a lot of really nice patterns out there, the question is do they want to rally into earnings or are they waiting on earnings to react? AAPL is on its way in a pre-earnings move, but it had help from Samsung. Other big names looked good Monday, e.g. FB, GOOG. If they want to go with AAPL again, it is hard to hold NASDAQ, a market leading index, down. If that happens, it at least keeps the weaker patterns (DJ30, SP400, SP500) from breaking.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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