Market Alert - Pre-Market

Futures vs FV: SP -6.89; DJ -73.81; NASDAQ -9.38

Futures are off the premarket lows, though after opening higher have trended lower the past 3 hours. Again it appears the market is going to open lower. WED it managed a rebound on the FOMC minutes. What will be the rescue today?

Actually, a softer open is not a bad thing, but the bids do need to return as noted last night: an upside move has to eventually stick if the rally is going to resume. Seems simply straightforward, but the market has failed to hold or rally on news that should have done it.

Trade: Still an issue. Wilbur Ross this morning stated that economic security is military security. How about economic STRENGTH is military security. That was proved up in the 1980's. Economic security sounds very central control oriented.

In any event, the US is opening a probe into import autos. Fighting on all trade fronts. Hmm.


Fed: Kaplan says Fed will hike 4 times 'or so' before the Fed is finished. Hiking I presume he meant. If the Fed was going to disband after 4 more rate hikes I think there would be dancing in the streets.


Earnings beats: BBY; MDT; LB (but lowered guidance); WSM; NTAP

Misses: HRL (TB); MCK (BL)


Jobs: DB cutting 7,000


M&A: KR buying Home Chef so it can compete with AMZN and others.


ECB: Pronounced weakening of demand cannot be ruled out. As noted WED, so much for the 'global synchronized growth?'


China: Stealth fighters are flying in Taiwan airspace. It appears clear that if we are going to stand behind Taiwan that means we will be in hostilities with China.


OTHER MARKETS
Bonds: 2.981% vs 2.982%. Still below 3%

EUR/USD: 1.1729 vs 1.1701. Euro rebounds some

USD/JPY: 109.56 vs 109.49

Oil: 70.93, -0.91

Gold: 1298.50, +8.90


Futures are trying to bounce into the open. Of course the upside likes a soft open that then swells into bids and gains. Perhaps some volume this time? Not necessarily counting on the latter, but with some of the NASDAQ big names stirring WED there could be a return of bids regardless of what the volume turns in.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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