Market Alert - Pre-Market

Futures vs FV: SP -9.96; DJ -65.89; NASDAQ -28.89

Futures continue to mine lower, trending down since the early morning. The blames is cast at uncertainty regarding the tax agenda that is credited for triggering the Tuesday bounce. Specifically, the President stated at a rally Tuesday that a government shutdown, something his 'friend' McConnell didn't even mention because there was 'no way on earth' the debt ceiling would not be raised, was possible over the border wall. This after McConnell earlier said he doubted the presidency would succeed. With friends like that . . .

NAFTA: Trump also said it will be renegotiated or terminated. Nothing new, just those who thought it would go away, like pregnancy, were wrong.


Earnings beats: EXPR; CRM; INTU (but lower guidance)

Misses: LOW (TL, BL); CREE (BL); LZB (BL, TL)


A REAL market drag; WPP, one of the world's largest advertising giants, cuts its full year guidance.


OTHER MARKETS
Bonds 2.187% vs 2.189% 10 year. Flattish despite all the supposed negatives.

EUR/USD: 1.1797

USD/JPY: 109.04

Oil: 47.67, -0.16

Gold: 1294.80, +3.70


Housing starts out at 10:00, but that won't help that much. This is one of those sessions were the news undercut the trigger for a rally. The market is technical, but subject to news. The key now is whether the algos hang in or decide it is time to sell. Futures have not found bottom yet for the morning, so we will see if NASDAQ, SOX, DJ30 can avoid a re-test of what they just left. If they fall back that far, particularly in one move today, that is very bad for the upside.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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