Market Alert - Pre-Market

Futures vs FV: SP -2.32; DJ -10.29; NASDAQ -1.96

Art Cashen said it this morning: most expected the market to work in a lateral consolidation, then it grinds to new highs. The expectations range from going nowhere to going sharply lower, but the market moves higher.

Today it looks as if the market will start lower, but it did that last week and ultimately moved higher. This week has some more intrigue in it with the Thursday triumvirate of UK elections, ECB policy meeting, and Comey testimony. Perhaps the weaker futures are a function of factoring that in, perhaps the market is just on a Monday lull after punching out new highs Thursday and Friday.

Geopolitics are still front burner:

Saudi Arabia, Bahrain, UAE, Egypt cut ties to Qatar because of its ties to Iran and support of terrorist groups.

Putin/Russia: Putin says the US interferes in elections all over the global map. Says JFK killed by the deep state that is also after Trump. He is always good for some interesting statements.


Q1 Productivity, Revision: 0.0 vs -0.2% exp vs -0.6% first read

Unit Labor Costs: 2.2% vs 2.4% exp vs 3.0% 1st read vs -4.6% Q4.
Lower than expected. Interestingly, Real Compensation fell 0.3% qtr/qtr.


EU Services PMI: 56.3 vs 56.2 vs 56.2 prior
Germany: 55.4 vs 55.2 exp vs 55.2 prior
UK: 53.8 vs 55.0 vs 55.8 prior


OTHER MARKETS:
Bonds: 2.178% vs 2.154% 10 year

EUR/USD: 1.1247 vs 1.12811. Dollar a bit stronger after the Friday euro surge post-Jobs

USD/JPY: 110.63 vs 110.446. Up a bit here as well

Oil: 47.26, -0.40

Gold: 1283.70, +3.50


Futures remain bumping along the lows of the morning range. Not down a lot, not showing any upside pop. A soft open on a new week after new highs is not that unusual, but of course any downside is certainly a sign the rollover is here just as every strong hurricane is seen as a validation of global warming. They both happen all the time without it meaning the overall conclusion is valid. Oh well.

We will see how our plays hold support in the early going and see what kind of buys develop off the soft open. It is June and that adds a bit more worry to the mix as June has been weak the past few years even as the 'sell in May' seasonal issues did not arise.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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