Market Alert - Pre-Market

Futures vs FV: SP -14.84 DJ -151.59; NASDAQ -55.93

A quartet or quintet of issues have combined to get the blame for stocks opening sharply lower, particularly on NASDAQ. Inability to breakout when the opportunity is there is not good action as noted, and now 'issues' threaten the lateral ranges.

Trade: Trump tweets the trade deal with China is 'moving nicely,' but the deal will need a different structure for verification and enforcement. While this is in line with what Kudlow said earlier, the President, in his usual manner, is much more morose in his commentary -- this is the way he negotiates. He is still Trump doing what Trump does, and the markets are yanked back and forth because . . . algos are in charge of the trading and only read headlines. Where is the vaunted AI that can sift through the data and come up with a person's MO?

North Korea: Worries the summit may not happen after Trump responded to Pajama Man 2's prior 'outrage' as well as what the South Korean president whispered in Trump's ear. Again, Trump is being Trump.

Turkey: Currency is diving, diving.

Italy: Bonds are blowing out on debt, debt, debt and the lack of a government even if they supposedly had reached a coalition.

Europe: Weaker PMI's in the EU. Global synchronized growth. Yeah right.


Earnings beats: TIF; INTU; HPE; URBN

Misses: TGT (TB); RRGB (TB); TCS (BL); LOW (TB)


OTHER MARKETS
Bonds: 3.012% vs 2.063%. Bonds rebound some on geopolitical issues.

EUR/USD: 1.17031 vs 1.1779

USD/JPY: 109.92 vs 110.81. Dollar fading some after upside moves.

Oil: 71.85, -0.35. Giving back some after the break higher

Gold: 1292.90, +0.90. Not much of a bounce given all of the issues today.


Futures gapped lower early morning and have held that lower range the entire morning. This is how it has been lately right? Gaps higher into a range Monday and Tuesday with very mixed results. Will this result in buying?

Not that confident about that. Monday half the market made good moves higher, half did not, this on 'great' trade news (trade truce). Tuesday there was another open higher but that reversed and the breaks higher were given back. Failed attempts to move higher when the opportunity was there. That makes the idea of a break higher here not so great.

So, we will see how the leadership groups hold support, not our favorite type of market viewing.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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