Market Alert - Pre-Market

Futures vs FV: SP -0.83; DJ -1.08; NASDAQ -1.58

A rather vanilla start for the week is ahead as stock futures are essentially flat, never really struggling, not showing a lot of power upside either. At least there is no bomb lower after the Friday rally attempt that rolled over.

NY PMI: -6.8 vs _2.0 expected vs -2.0 prior.
Back to 5 month lows as the June bounce was truly, as noted at the time, an outlier bounce that has fizzled. New orders are down again in a report that is not encouraging.


Industrial production, Sept: 0.1 vs 0.2 vs -0.5 (from -0.4)

Capacity utilization: 75.4 vs 75.6 exp vs 75.3 prior (from 75.5)

The revisions are not good as downside revisions show too much exuberance. Not that surprising given the Fed's 2016 forecast keeps falling as the Q3 GDP forecast keeps falling as seen on Friday. They hope things will get better, apparently based upon the belief that enough time has passed so they are 'due.' Again, if the policies that caused the problems are still the policies in place, expecting change is a fool's game.

EU CPI: 0.4 vs 0.1 prior. 0.4% year/year vs 0.4% prior

Earnings beats:
BAC beats on 1) trading, 2) expense control. Still not growing banking business, but you have to 1) loan money, and 2) have interest rates a bit higher to make money on banking business.

HAS beats

Fed: Fischer to speak at 12:15ET. Fischer is supposedly a hawk and a counterbalance to Yellen. Ha ha ha ha ha ha ha! That is a good one.

Economist Samuelson: Global debt is now $152T, up from 67T in 2002. Wow.


OTHER MARKETS
Bonds: 1.773% vs 1.80% 10 year

EUR/USD: 1.1005 VS 1.0969. Dollar weakens some after that strong dollar surge.

USD/JPY: 103.97 vs 104.146

Oil: 50.42, +0.07

Gold: 1255.40, -0.10


Stocks are set to muddle as a flat start doesn't give sellers anything to shoot at. Maybe buyers try to enter again. The market has not established a trend as DJ30, SP500, SP400, RUTX trade in the range after breaking their uptrends. NASDAQ has weakened. SOX is the remaining index in its last uptrend while the others broke the near term trends and are trying to decide which trend to try and take. The open today doesn't look as if it is going to do much to change that.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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