Futures vs FV: SP -3.00; DJ -23.00; NASDAQ -3.25
Europe is on the front burner as Mario Draghi speaks favorably of the EU economies but says accommodation is still necessary. Also, Germany says it may withhold the next Greek payment unless more concessions are made (more in the love affair between the Germans and Greeks). Greece has refuted this story and futures recovered a bit.
M&A: FDC is buying Card Connect in the payments group.
AAPL: Working on its own chip for its AI for its devices.
AMBA: downgraded to neutral.
Altair hedge fund returns hundreds of millions to investors, citing imminent calamity. Okay, there is another major player looking for a massive fall. When it happens it likely will be massive. But when . . .
Personal Spending, April: +0.4% vs 0.4% exp vs 0.3 prior
Personal Income: 0.4% vs 0.4% vs 0.3% prior (from 0.0%)
7 month lows in spending at 4.3%, lowest since 9/16. Some weakening that is commensurate with the other economic weakening. Not rolling off the table, but weaker.
Trump is back and so are the tweets. He says Germany sells us too many goods (our paraphrase) and doesn't pay enough for NATO, and that both will change. Welcome back!
OTHER MARKETS
Bonds: 2.239% 10 year. Bonds rallying on weaker equities, European issues, Trump's return from the international scene.
EUR/USD: 1.1172. Dollar stronger on worries about Greece wanting concessions before next debt installment, Italian economic issues.
USD/JPY: 110.928, -0.325. Dollar struggling against yen as the latter is stronger versus many currencies.
Oil: 49.40, -0.40. Back below 50, struggling ever since it approached 53ish.
Gold: 1265.50, -5.90
Futures are well off their morning lows, rallying back up the past hour. That is more positive than heading lower into the open. Plus, with the market trending higher, negative views and stories notwithstanding, the resilience has been to the upside. As noted earlier, sure the move will stop some day. Any day could be the day. Right now there is a good uptrend, good leadership, and whether the big fund managers making headlines are in or out, buying or not, the market has been under accumulation. So, we will again see if the market can come back from some early weakness and continue that resilience.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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