Market Alert - Pre-Market

Futures vs FV: SP +5.25; DJ +37.00; NASDAQ +25.25

Stocks look to end the month trying to bounce higher after 2 sluggish sessions following SP500, NASDAQ new highs, SOX new post-2000 high. Futures started the pre-market sluggish but have been on a steady rise since.

News is, frankly, the usual.

Trump is back in the US and there are the usual headlines about the probe about the possibility that something was done wrong because someone made a statement that it could be possible that the event could have occurred. Our law typically does not allow investigations into people just to see if they might have done something wrong. The authorities are required to have reasonable beliefs based on some evidence. Oh well, these are the headlines the market has to deal with.


Europe is PO'd because Trump is going to pull out of the Paris Climate accord (I guess it is not now an accord?) and told NATO partners they had to actually pay for the defense it provided.


UK: PM May called snap elections to solidify her power and now a poll suggests that may backfire.


EU: CPI lower than expected at 1.4% vs 1.9% prior.


EU: Talk of converting some countries' sovereign debt to sovereign bond-backed securities.


China: Yuan soars as PBOC intervenes to decimate yuan shorts.


KORS: to close 100 to 125 stores


US mortgages: -3.4% versus +4.4% prior week


OTHER MARKETS
Bonds: 2.217% vs 2.21% 10 year

EUR/USD: 1.1221 vs 1.11752

Oil: 48.55, -1.11. Oil continues to fall after bumping near the top of its range, this despite that OPEC deal to extend production cuts 9 months. All that did is tell oil investors that OPEC has no control over the market and they have sold oil again as a result.

Gold: 1269.20, +3.50


Futures are just a bit off the high heading toward the open but holding up quite nicely. Again it appears stocks are ready to rebound after 2 days of more sluggish action, at least sluggish outside of SOX and some other solid groups.

Some headlines say watch out for a summer swoon, others say June will be just fine so jump on in. The truth, of course, is in between, i.e. look for good patterns that show buyers. Those have been, are, and will be the stocks that perform for you.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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