Market Alert - Pre-Market

Futures vs FV: SP 3.12; DJ 28.10; NASDAQ -1.49

NASDAQ futures were up 9 points but have really tailed off toward the open. Indeed futures in general are off their highs but NASDAQ is notably weaker.

The market does have a new toy to focus on this morning: the House healthcare bill vote. Of course the immediate response is that it is 'DOA' in the senate. Sure it is. It was also DOA in the House until 2018 until it was not. Negotiation made it work.


Trade Balance: -43.7B vs -44.4B exp vs -43.8B prior.
Imports: -1.7%, -0.7%
Exports: -0.9%
The weaker import data shows you the US slowdown. When things are good for the US consumer, he/she buys imports.


Q1 Productivity: -0.6% vs 0.1% exp vs 1.8% prior (from 1.3%)

4 of 6 quarters lower and the largest productivity drop in 15 months.

Unit Labor Costs: 3.0% vs 2.6% exp vs 1.3% prior. Of course they are surging as productivity drops. Bring on the machines?


Challenger job cuts: -42.9%. Layoffs are not happening this month.


Oil: Russia says no decision yet on OPEC production cut extension. Oil tanks.


Beats: CHD; VIAB; SQ; FIT

Misses: TSLA (BL); ABC (TL); REGN (BL); KFT (T, B); CAKE (T,B); AVIS (T, B)


OTHER MARKETS
Bonds: 2.356% vs 2.322%

Oil: 46.87, -0.95. Bombing lower

Gold: 1227.90, -20.60. The FOMC wrecked gold's upside aspirations.


Futures continue fading into the open, the wrong way for the bulls. Will see if the selling has a bell check, i.e. rebounds as the bell sounds. Watching SP500, DJ30, RUTX, SP400 to see if they can make the break higher and make it stick.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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