Futures vs FV: SP +2.11; DJ +22.39; NASDAQ -26.08
Yes SP futures are up thanks to the banks. Without the banks the indices are all lower. NASDAQ continues to struggle; after a bounce up off the 50 day MA, it is starting lower and raises questions again about money leaving techs. It looks like so much for the easy new highs on RUTX, SP500 in the wake of the bank news last night.
GDP, 3rd: 1.4% vs 1.2% 2nd vs 0.7 1st read.
Reason for increase: consumer spending bounced.
Big negative: Corporate profits -2.3% vs +0.5% Q4. These are actual tax filings with the IRS so they are not the bogus quarterly non-GAAP pabulum the market is fed and chooses to believe.
M&A: WBA and RAD call off merger. RAD's future now . . . questionable.
Central Banks: The consensus in the media is there is a coordinated hiking message from ECB, US Fed, Canadian central bank. Okay, they will go off the cliff holding hands.
Earnings beats: CGA; MCK
Misses: STZ (TL); PIR (TL)
OTHER MARKETS
Bonds: 2.285% vs 2.219%
EUR/USD: 1.1403. Euro cracks 1.14, surging upside against dollar.
USD/JPY: 112.86
Oil: 45.21, +0.47. Steady rise after the apparent false break below the range.
Gold: 1240.20, -8.90. Some sustained weakness as the central banks are coordinated in hiking.
Futures are well, well off their morning highs. The financial stations are quite sanguine about the open. In this office we see a weakening futures bounce that it appears the banks cannot overcome. NASDAQ stocks will need to find an early floor to prevent downside.
The NYSE patterns still look very good but the easy new highs that seemed set to happen on the open in RUTX and SP500 thanks to the banks are in jeopardy.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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