Market Alert - Pre-Market

Futures vs FV: SP -2.31; DJ -17.93; NASDAQ-26.21

After gapping lower in the very early session, futures range-traded then the past 45 minutes futures bottomed and have climbed halfway off the lows. The end result? Still a weaker open but not that weak.

Big name earnings such as CSCO weighing on NASDAQ. WMT beta and showed good internet growth, embracing its 'inner Amazon' as one reporter puts it.

In sum, the indices are going to open lower as WED may not have been the start of the second leg higher on this move. That said, this is a modestly weak open, and those are good things in rising markets. Thus, there could be a soft open that sees bids return. That is the real tell for the session.


Philly Fed, May: 34.4 vs 20.0 exp vs 23.2 April.
New Orders: biggest print in 45 years. Impressive.


Jobs: Continuing claims hit a 45 year low (1973). Under the Trump administration, continuing claims have plummeted. It goes to show what I said all along: implement some pro-growth policies after a decade of anti-growth policies, actually require people to work if they can, and you get the people from 'disability' nation back to work. As I always tell the school board, the kids when they complain, or someone who just can't understand why their dog disobeys: if you expect nothing you get nothing.


Mueller Investigation: Guilliani says Mueller told him no Trump indictment. Okay, but Rudy has not been exactly a beacon of accurate statements the past few weeks.


Earnings beats: WMT; CSCO

Misses: JCP (TL); TTWO (TL); JACK (TB)


OTHER MARKETS
Bonds: 3.096 vs 3.096. Moved over 3.1 but backed off

EUR/USD: 1.1804 vs 1.1812

USD/JPY: 110.70 VS 110.34

Oil: 72.06, +0.57

Gold: 1289.30, -2.20


Futures off the lows, still mushy, but nothing seriously low. A good setup to see if the bids return, a good session to let some leaders test and consolidate a bit more. The action is still decent though WED was disappointing with upside on crappy internals. It just was not the day. Now we will see if bids return with some gusto off a lower open.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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