Market Alert - Pre-Market

Futures vs FV: SP -9.62; DJ -56.70; NASDAQ -32.79

Futures are at session lows, matching the lows for the morning. Futures have held the same range the past 4+ hours with no really attempts to buy the weakness, but at least not trending lower into the open, at least not breaking the lows of the morning range.

The ongoing issues between NKorea and the US are blamed, but when you look at the headlines, the entire world is PO'd. China and India are almost at war. China and Japan feud continues to simmer. US/Russia at odds over sanctions. Worryingly quiet is Iran, likely watching closely how the US handles NKorea.


PPI, July: -0.1% vs 0.2% exp vs 0.1% prior. Yr/yr 1.9%

Biggest drop in 11 months

Core PPI: -0.1 vs 0.2 exp vs 0.1 June. Yr/yr 1.9%

Services led the drop: -0.5%. Goods -0.1%


Earnings beats: M; KSS; GOOS; PRGO; EAT; ELF; LIVE

Misses: APRN, FOXA (TL); JACK (TL, BL -- caught TB); CBI


OTHER MARKETS
Bonds: 2.234% vs 2.246%. 10 year is moving lower as bonds rise

EUR/USD: 1.174 vs 1.1758

USD/JPY: 109.64

Oil: 50.07, +0.51. Right back up to 50 on the world issues even as production moves higher as OPEC cannot hold its production lower

Gold: 1288.70, +9.40


Futures are stuck on the bottom of the morning range and it looks as if the indices might put in . . . a third day of declines.

The setup for the week was NASDAQ, SOX, SP500 holding support. SP500, NASDAQ threatened a break Wednesday and with this open will be trying to break lower. DJ30 doesn't count because it has been on a freakish move higher. We will see if bids return after yet another scare. They can come back, but the more times they have to deal with bad news the less bids they have.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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