Market Alert - Pre-Market

Futures vs FV: SP +7.15; DJ +62.97; NASDAQ -3.52

Once again NASDAQ lags the overall market though not as egregiously this last day of the 2nd quarter. Those stocks are still finding a lack of bids as money continues to leave those groups.

SPY futures have been higher all morning and are holding the same level the past 3 hours. Static futures levels are not that great an indicator.


Personal Spending, May: 0.1 vs 0.1 exp vs 0.4% April. Real spending rose 01% as well, lowest since February.

Income: 0.4% vs 0.3% vs 0.3% prior (from 0.4%)

Savings rate at an 8 month high.


EU: Inflation lower but more or less in-line: 1.3% vs 1.2% vs 1.4%


Trade: Trump resists almost his entire cabinet and is going back to the 90% tariff notion on China steel. He has, apparently had enough with the GS advisors who want the status quo. Trump figures he was not elected for the status quo and his base is PO'd. So, going to what works for him. Does it work for everyone?


Healthcare: On a positive note, Trump tweets that if Senate cannot pass the Senate healthcare bill, then it is time to just repeal the ACA. Again, this is what Trump was elected to do, and frankly the ACA business and jobs killer has to go. Trying to keep parts just doesn't get there; repeal, get something new, put in the parts people like, let the market work better.


Central banks: After making the 1% uber wealthy with its policies, are central banks now wanting to take back? To social engineer and change what the wrought? Several Fed speakers have talked of lower markets ahead. Hmmmm.


OTHER MARKETS
Bonds: 2.281% vs 2.268% 10 year

EUR/USD: 1.1415 vs 1.4422

USD/JPY: 112.14 VS 111.992

Oil: 45.25, +0.32. Still rising after Gartman said it was going lower. Oil broke its range then recovered the range and has moved higher each day since.

Gold: 1240.60, -5.20


End of quarter, short session Monday, skeleton desks. Not the day to do a lot. We are, as noted, watching some biotechs for possible new buys.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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