Market Alert - Pre-Market

Futures vs FV: SP +1.33; DJ +17.78; NADSAQ +7.17

Futures are up but modestly to start the new quarter. If there is going to be a new quarter surge, it is going to have to build on this early modest bump higher. Despite the headlines about the great Q1, it went out rather quietly with the indices at important levels for continuing the upside trend.

There is news, but most are waiting for the news to come as if that is going to change anything. The Jobs Report is this Friday; remember the last jobs report that everyone was looking to? It seems just like a couple of weeks ago we had a jobs report. Not much of a reaction.

US ISM, Construction Spending at 10ET

EU PMI: 56.2, in line with expectations


TSLA: Delivers 25K vehicles in the quarter, not bad at all.


Fed: Dudley to speak at 10:30ET


Politics: Trump meeting with China's Xi this week. Over the weekend Trump said the US was willing to go it alone regarding NKorea if China doesn't get off its 'we can't control NKorea' meme. World markets seem to shrug this off.


OTHER MARKETS
Bonds: 2.387% vs 2.40% 10 year. Bonds rally after bumping resistance last week and fading to near support. Important next moves for the bond market, i.e. will it breakout or stall at the top of the range.

EUR/USD: 1.0665 VS 1.06584

USD/JPY: 111.326 vs 111.386

Oil: 50.75, +0.15

Gold: 1247.60, -3.60


Futures are range-bound in the pre-market, trading in a rather narrow range ahead of the open. Again, no real new money surge for a new quarter taking place thus far. Of course this market last week, after that Monday gap lower, showed sluggish pre-market sessions and managed in most cases to rise into the close as the indices recovered from that Monday downside gap. Interesting that the gap was the end of the latest selling round in the range.

Oil is decent even with all of the production out there. OPEC is supposedly mulling extending its production cut through June. So, we will keep an eye on the oil plays and see if they can resume the upside after ending the week with a 2-day fade of the initial surge.

Retail is another area that started performing again last week and watching it as well. Market needs new groups to continue moving higher.

Chips and biotech of course remain a focus as leaders and it won't hurt if FAANG can continue its rally renewal.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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