Market Alert - Pre-Market

Futures vs FV: SP -3.50; DJ -25.78; NASDAQ -5.31

Reading the doom and gloom pages early this morning you would think the US stock market was going to open limit down. Headlines noted US futures 'reeling' ahead of the weekend. Worried, I jumped to the futures readings. Fake news I suppose.

There are LOTS of inaccuracies in the news this morning.

Mexico: Many are reporting the 'strongest earthquake to hit Mexico in 100 years.' No, it is not. The 1985 8.1 magnitude quake just west of Mexico City was stronger. Perhaps the strongest in THAT PART of Mexico. Tragedy for sure. Our news media cannot get a story correct, however.


North Korea: Next nuclear test/launch scheduled for this weekend? That is what SKorea says. But it is being reported as a test or launch so who knows?


Lots of upgrades and downgrades and some earnings. FNSR matched earnings, beat on revenues, but had 'week' guidance according to CNBC. What, is FNSR giving guidance weekly now?


Trump: Tweets how great Coast Guard is, how the Feds are ready for Irma, then BLASTS the republicans for utter failure to act after 7 years of the ACA, about its unwillingness to get rid of the extra-constitutional filibuster 'rule,' and how it is letting 6 to 8 democrats run the country. All true. Republicans will again be 'furious' as they were after the debt deal, but as I noted Thursday, they have proved to be utterly feckless negotiators and strategists. In short, they suck, Trump calling them on it.


Dollar: Continues getting slammed and this is what is credited for stock weakness.


EFX: Massive data breach for 143M Americans. Likely you are one of them given this is roughly the number of families/households in the US. Great job guys and girls! Ironic. The credit companies HAVE to have all of your information, don't give you any information on how the calculate your score, yet a hacker can walk right in and take it. This is a microcosm of how we are setting ourselves up for an upcoming nightmare given our reliance on technology and the fragility of the safeguards for our systems. We think Harvey, Irma, etc. are bad? Wait until our systems go down.

Oh, on top of this, 3 executives sold millions of dollars in shares 2 days after the breach (in July).


OTHER MARKETS
Bonds: 2.054% versus 2.042%

EUR/USD: 1.204 vs 1.20225

USD/JPY: 107.71 vs 108.444. Yen still leaping as dollar still tanking.

Oil: 48.94, -0.15

Gold: 1354.40, +4.10


Futures are well off the 'reeling' morning lows that were never really that low. Not powering upside, but a gradual rise toward the open.

So, the market opens down to close out the week and we will see if the bids return. It would look like early on at least, a breakout upside from the consolidation of the prior week's rally won't happen today. If the bids return, however, the break can happen. Still good patterns, still looking for that next new high and additional upside before the algorithms kick in to sell and send things back to the bottom of the range.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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