Market Alert - Pre-Market

Futures vs FV: SP -5.05; DJ -49.13; NASDAQ -12.58

Futures are trading near the session lows as they have done for the past hour. No major selling, but definitely not the rebound off of the Monday give back of the prior week's breakout.

Perhaps the market could have attempted a rebound -- but for the bad earnings, talk of a too weak euro, firing of the AG (and I would have done it myself in the same position), and oh yes, the firing of the head of ICE. There is much wailing about the actions even with an express, very clear authorization for a President to take the immigration actions taken (and already done by several Presidents). The administration also did the right thing with respect to 872 refugees already cleared who had cut all ties, sold property, etc. If my AG refused to implement my authorized orders, I would be looking for someone new as well. Oh, and Trump does have someone: still waiting for the Senate to vote on Sessions as AG.

Again, a lot of angst is expressed by Silicon Valley type CEO's that fear the next step will be limitations on their coveted H-1b visas they exploit to get cheap foreign labor so they can avoid hiring the tens of thousands of US educated citizens with STEM degrees but no jobs because these 'titans' of industry don't want to hire them but want to be 'global' in their largesse and mercy. An overlooked by extremely critical point behind all of their billionaire sorrow.

Earnings: Rather pathetic with some surprises sprinkled in.

Beats: TMO, AET, WERN. WERN is the surprise.

Misses: PFE (BL); UA (TL, BL); HOG (BL, TL); XRX (TL); XOM (BL); UPS (TL, BL)


Trade: Trump Trade Advisor Navarro says that Germany is taking advantage of its EU partners, exploiting them and the US with a 'grossly undervalued' euro. Let the trade wars begin . . . NOT good for markets.

EU GDP, Q4: +0.5% vs 0.4% exp vs 0.4% prior. 1.8% yr/yr vs 1.1% prior


OTHER MARKETS
Bonds: 2.47% vs 2.49%. A bit of worry and bonds are getting a bid.

EUR/USD: 1.0755 vs 1.0695. After Trump advisor comments on euro being Germany's tool against its EU partners, dollar weakens as US is unfortunately showing a weak dollar posture.

USD/JPY: 113.36 vs 114.493. Dollar down against euro as well

Oil: 52.87, +0.24

Gold: 1205.70, +9.70


There is an FOMC meeting starting today and a rate announcement tomorrow. No one expects change . . .

All of this is just too much strain for the market to bear. It is a hope that it tries to rally back some from the Monday national day of angst and we can use that as an exit if it fails the move. At this juncture, would LOVE to have that opportunity. Futures are hanging in and trying to bounce but thus far not getting much footing.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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