Market Alert - Pre-Market

Futures vs FV: SP -17.77; DJ -210.48; NASDAQ -54.26

Futures are just off the lows of the morning having steadily declined since opening lower. Trade tariffs slowing global growth is the main story. The guy on CNBC has it right: the rest of the world is just slower even before this tariff talk started. Oil and other issues are having the impact; there is no way the tariffs from Friday are impacting what has been the case for months. Not that they won't have an impact, and that is what the markets are focused on, not what has been.

Germany exports 5% of its steel. Canada is a steel importer. Tariffs on German steel imports to the US will hurt it badly? Will Canada experience issues in its steel industry if the US puts tariffs on Canada steel sent to the US -- which does not happen? Nonetheless, tariff talks increase prices and prices are indeed higher.


Germany: Another key story is Merkel possibly on the way out in Germany thanks to the upheaval against her migrant policies. That is rather important to the world and to markets.


UK: GDP said to be running 1.3%, a serious slowdown for the country, another story that has the markets unsettled -- where is that synchronized global expansion everyone was talking about two months ago? It never really was that great -- kind of like the Fed's view of the economy as discussed over the weekend -- they might think it is great, but historically it is not as strong as they profess.


GOOG: Investing $550M in JD. At least that helps us this morning with our JD position.


Analysts: Upgrades and downgrades, but today it is all noise in the background of tariffs, Germany politics.


OTHER MARKETS
Bonds: 2.906% vs 2.922%. A bit of a safe haven flight.

EUR/USD: 1.1609 vs 1.1607

USD/JPY: 110.44 vs 110.66

Oil: 65.17, +0.11

Gold: 1282.10, +3.60


Friday the markets weathered the US/China tariff back and forth, but the weekend suffered through multitudes of stories about how bad this is and markets are reflecting the negative sentiment to start the week and the new expiration.

The indices will gap lower and then we will look to see whether the industrial patterns are holding together -- along with other stocks as well. There are many good patterns out there but now they will have to hold the line on the renewed negativity regarding trade.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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