Market Alert - Pre-Market

Futures vs FV: SP -2.40; DJ -4.62; NASDAQ -3.21

The big news over the weekend was the G-20 and the failure to affirm free trade by dropping the phrase "resist all forms of protectionism." Treasury Secretary Mnuchin blunted any consternations over leaving that wording out by stating "was not necessarily relevant from my standpoint." That seemed to take care of the issue and the currency markets are fairly quiet in the aftermath. Hey, they did agree to combat currency devaluations, so there. Some say it was a failed meeting, some called it disappointing, but it was what was likely to happen with the Trump administration in power.

China: Did not like the outcome and is supposedly set to meet each trade adjustment by the US with reciprocity. Okay, we will see.

China did report home prices +11.8% yr/yr, more than expected though lower than the 12.2% prior.


Outside of the usual upgrades and downgrades (SNAP got its first and only buy rating), there is hardly any financial news today.


Trump Supreme Court nominee is set for 3 days of questions in front of the Senate. That should be a circus.


FBI Director Comey appears before Congress to testify about how the Russians are coming, the Russians are coming. John McCain will try to use this to bloviate as possible as will other career members of Congress. I hate slow economic news days.


OTHER MARKETS
Bonds: 2.501% vs 2.500% 10 year

EUR/USD: 1.0746 VS 1.07395. Dollar remains weaker post-FOMC

USD/JPY: 112.773

Oil: 48.07, -0.71

Gold: 1231.50, +1.30


Futures are off the lows but are in the range of the morning. Futures started lower and have range-traded in a narrow band all pre-market, not trending higher or lower. Kind of directionless in the premarket. The sellers had a chance perhaps to sell after the G20, but they are not really pushing their hand this morning. Many are talking about a topping market, but as we have noted for awhile, thus far the sellers just are not that aggressive or cohesive.

We still see many solid patterns and we will see if the bids come in after a soft start to the week. Futures are trying to break higher from their pre-market range.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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