Market Alert - Pre-Market

Futures vs FV: SP +0.40; DJ +6.75; NASDAQ +12.38

More of Monday, i.e. milling around in a lack of volatility versus the volatility on demand whether you wanted it or not last week. Calmer, more stable as dollar stronger, gold lower, and stocks undecided. But, undecided after that volatility is more of a positive. As noted last night, volatility that does not kill a market strengthens a market.

Lacker: Says there is a "strong case" for raising the Fed Funds Rate as historically rates should be higher based upon the inflation levels and employment levels the economy is showing. Lacker says that pre-emptive hikes may be necessary in order to maintain stability in terms of inflation.

That all sounds good and indeed the odds of a rate hike are up ever so slightly, but Yellen still is in charge and thus any hike is problematic.

Bill Gross: Now of Vanguard, formerly Pimco, Gross said the markets are casinos and noted that the rise 'can't end well.' You know, the usual from Gross and others. Thing is, it is NOT a casino because at a fair casino the odds are at least known. With a Fed that will tinker at any time over anything, the odds are unknown.

Dollar: Very strong today, pushing oil lower, gold lower. Dollar is at a 31 year high against the pound as it racks up big gains against the yen and EU.

India central bank: BOIndia cuts rates 25BP

IMF: Lowers 2016 global growth guidance to 3.1% on Brexit, but the UK is not Europe's or the world's problem in terms of economic activity.

Jobs: CY (semiconductors) cutting 500 (8%) of workforce.

M&A: DIS rumored looking at NFLX and thus the Monday move.


OTHER MARKETS
Bonds: 1.622% vs 1.622% 10 year

EUR/USD: 1.1172 VS 1.1213

USD/JPY: 102.476 vs 101.586

Oil: 48.79, -0.02

Gold: 1294.30, -18.40


Futures are holding their lows of the past 3 hours, moving in a tight, non-volatile range. Lower on the NYSE, yes, but not bouncing around, not trending down. More of what was seen Monday as the indices try to work off the volatility and set the next trend. While holding steady is no breakout, it is allowing the NYSE indices to work through their bear flag patterns and gives chance for NASDAQ to lead them. NASDAQ is sporting decent gains so we will see if it can pull it off.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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