Futures vs FV: SP -3.36; DJ +2.99; NASDAQ -5.97
A bit hung over after a solid Monday price advance as the futures trade modestly lower. A soft start in an uptrend is typically not a bad thing. That said, this market is somewhat insane.
Futures hit a low about a half hour back and are on the recovery heading toward the bell.
No hard economic data but today there are some stories.
Mnuchin: Tax reform will be done this year. okay, he is sticking with
that line.
Oil: Testing the key support level at 43 with a sharp drop in oil a couple of hours ago. That drop took stock futures down with it.
China: Bond yield curve inversion at a record inversion. As a refresher, when the bond curve inverts (short term yields higher than longer term) that signals economic weakness.
Russia: No, not a Trump story. Word is then Secretary of State Clinton ordered the transfer of uranium to Russia on the tarmac of an airport 'near the plane.' Bizarro world.
BOE: Not time to raise rates. I suppose with Brexit and the government turmoil that makes some sense.
OTHER MARKETS
Bonds: 2.181% vs 2.191% 10 year. Bonds holding the gains, adding to them.
EUR/USD: 1.11521 vs 1.11419. Euro edges higher again
USD/JPY: 111.49 vs 111.729. Dollar slips again after a modest bump up.
Oil: 43.06, -1.14. Testing key support in its range. Some are saying it goes to the high 30's. Watch, however, the bottom of the range and a possible false breakdown.
Gold: 1247.10, +0.40
Futures remain off though DJ30 futures are now just positive. Oil effect is wearing off some and we will see if those stocks in very good position continue to make the breaks higher and provide leadership for the market.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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