Market Alert - Pre-Market

Futures vs FV: SP -2.44; DJ -29.78; NASDAQ +2.25

Trending lower all morning from early highs that topped the Monday close to lows below the Monday session lows. Over the past hour futures tried to bottom and bounce, but not much success in that thus far.

Import prices: -0.2%. Ex-oil +0.1%. Ah, oil is the culprit. I don't know of many complaining about that, but oil is on the rise again inside its range, today aided by the Saudis saying they think deeper production cuts are necessary.

Imports year/year: +1.5% vs 2.3% prior (from 2.2%)

Export prices: -0.2% vs 0.0 ex vs -0.5% prior (from -0.7%)

Exports year/year: 0.6% vs 1.5% prior


Oil: Saudi Arabia considering more production cuts. Oil up nicely.


ACA: Senate healthcare bill sees 2 more senator defect and thus the bill is dead. McConnell, Trump now calling for repeal, what should happen regardless; there is just too much clutter and intertwined cobwebs in there to fix. Repeal, start over. Irony: the House and Senate GOP members voted for repeal many times, but many of those that voted for repeal when President Obama was in office and would veto the matter now are squeamish about voting for repeal. There is a word for that, in fact several: coward, dishonest, disingenuous, hypocrite. Many more not proper for this forum.


Earnings beats: GS (but weak trading revenue); UNH; BAC; CMA; NUVS

Misses: NFLX (BL, but lots of subscribers); HOG (TL); JNJ (TL); SCSS (TL, BL)


OTHER MARKETS
Bonds: 2.284% vs 2.318%. Weak export/import prices, worries about healthcare reform send bonds surging again.

EUR/USD: 1.1557. Euro is soaring up off its test of the rally.

USD/JPY: 111.88. Dollar falling hard against the yen as the relief bounce is out of relief.

Oil: 46.72, +0.70. Oil surges on word that Saudi Arabia is contemplating deeper production cuts.

Gold: 1240.90, +7.2. Gold trying to make the break higher as uncertainty about the US economy given the healthcare failure redux.


Futures just slipped to a slightly new session low but are still holding in the last hour's range. Perhaps they can mount a lower open followed by recovery move. NFLX guidance has some investors excited and we will see if that is contagious enough to get the rest of the market moving back upside.

Remember, today is a day to watch how the rotation works, i.e. what is up, what is down. Important day for the market given the NFLX ebullience but lagging futures.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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