Market Alert - Pre-Market

Futures vs FV: SP +1.92; DJ -9.09; NASDAQ +29.54

Futures are all over the map with NASDAQ surging while NYSE flops around like a hard head on hot pavement. The combination of the Yellen testimony, the economic data, and the post-Yellen Fed comments have bonds and gold surging, the dollar crashing, and the growth segments of the stock market in a 'bad is the new good' mindset again. In other words, times are normal given a hyperactive Fed and a Congress that actively wants to accomplish nothing other than maintain their turf in DC. Not good for Main Street USA, but some market areas will rise.


CPI: 0.0. 1.6% year/year vs 1.9% prior
Core: 0.1. 1.7% year/year


Retail Sales, June: -0.2%
Ex-Autos: -0.2%
Control Group: -0.1%. GDP Q2 going lower.

Core sales: weakest in 3 years (2/2014)


Fed commentary: More than one governor saying the CPI is causing the Fed to "rethink paths," i.e. rate hike schedules. Indeed, September hike is now seen as a no-go by the market.


Earnings beats: JPM; C; PNC

Misses: WFC (TL)


OTHER MARKETS
Bonds: 2.28% vs 2.346%. Massive move in the 10 year and bonds in general after the very weak economic data AND Fed comments about its rate hike paths.

EUR/USD: 1.1457 vs 1.1396. Dollar slammed on the economics, Fed.

USD/JPY: 112.35 vs 113.314

Oil: 46.13, +0.05

Gold: 1230.60, +13.30


Futures spiked post-data but have given most of that move back. In any event, NYSE futures were not all that great before the data, so they are heading into the session basically flat. NASDAQ is going to gap higher again, seeking a new high. Bad is good, right?


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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