Market Alert - Pre-Market

Futures vs FV: SP -15.51; DJ -85.56; NASDAQ -63.32

Stocks are weaker in the aftermath of the FOMC's rate hike and balance reduction plan and new allegations from the Washington Post that the special council is now looking into obstruction charges against Trump.

It would appear markets have decided that no matter how much evidence there is not regarding the Trump administration, the allegations will continue. If not Russian collusion, it is obstruction. If not obstruction, it is ___________ (fill in the blank). That wears on markets, and combined with the FOMC it is too much to bear, at least for this morning.

Empire, June: 19.8 vs -1.0 exp vs -1.0

Philly Fed, June: 27.6 vs 26.0 vs 38.8 May

Import Prices, May: -0.3% vs -0.1% exp vs 0.2% prior (from 0.5%)


OTHER MARKETS
Bonds: 2.157% vs 2.127%. 10 year is off the Thursday gains but still holding most of that big post-FOM move, continuing the question: why are bonds so strong if things are so good.

Dollar: barely moving on the news.

Oil: 44.56, -0.17

Gold: 1225.60, -20.30. At least gold is now dropping some.


Stocks were already lower before the morning economic data came in better than expected, and the data has not really helped. There is some movement higher and we will see if that can improve as the open approaches.

Many of the big NASDAQ stocks are under pressure again, down over 1% pre-market. NASDAQ will find the going tougher of course if they are not able to find some support. The patterns, as discussed last night, are not that comforting in terms of further upside.

If the outlook does not improve stocks will open considerably lower with a lot of the recent leaders in chips, techs heading lower from their rebounds. It will be very important to see if the other areas such as manufacturing, construction, materials, metals that looked to be improving can pick up the slack. They did not do a very good job of that Wednesday.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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