Market Alert - Pre-Market

Futures vs FV: SP -0.12; DJ +13.26; NASDAQ +9.57

Futures range-bound all morning at basically the flat line plus some upside bias that remains in the market. So, you have NASDAQ looking to lead early session as Monday opens with no return of the zero sum rotation.

NY PMI, July: 9.8 vs 13.0 exp vs 19.8 June. Lowest in 8 months as the soft manufacturing data looks to be catching down to the harder economic data that has slumped for several months now.

China: Reports surprisingly solid industrial production and other economic metrics. Still, Shanghai dropped 1.4% led by small cap selling. Reportedly the selling results from "regulatory tightening concern." Regulation in China? Surely you jest.

Healthcare: Awaiting the CBO scoring on the new and improved (so they say) GOP Senate healthcare bill. Senator Collins says there are 8-10 republican senators still uncertain. Given 2 are already no votes, all of those uncertain must turn certain to pass it.

Interesting story hitting the wires: Since 2008, the main buyer in the market has been companies buying their own shares. Institutional investors have accounted for -7% of the action, i.e. net sellers.


OTHER MARKETS
Bonds: 2.323% VS 2.332%. Quieter as bonds try to hold support after post-Yellen volatility last week.

EUR/USD: 1.1462. Quiet after last week but holding those gains.

USD/JPY: 112.44. Dollar remains significantly weaker versus yen.

Oil: 46.31, -0.23. Trying to finish off the test of the move back into the range.

Gold: 1233.70, +6.20. Still showing upside impetus after the Yellen testimony


A sluggish start, more or less, at the open, but after the rally into Friday, the lack of any backtracking shows the upside impetus remains for now and we see if the rotation returns or not.




Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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