Market Alert - Pre-Market

Futures vs FV: SP +9.68; DJ +136.79; NASDAQ +38.21

Futures rebound and just moved back up to premarket highs as the trade issues now ebb after rising the prior few sessions.

Trade: Specifically, Germany offers to remove the 10% tax/tariff on US autos. Some movement where none existed before. You have to want to make a change and take actions to affect the change versus just sit there as the US has done for decades. As we have seen, it is messy at times. Interestingly, GS' Blankenfien has said that what Trump is doing is exactly what you do to let the other side know how much ammunition you have to use.

Talk of fading trade worries aside, today the White House stated that China engages un "persistent economic espionage and aggression." Apparently the White House does not want to let the heat die down too much.


M&A: DIS ups its bid for Fox assets. That is most of what is being discussed this morning on the financial stations. Yawn.


DJ30: Kicks out GE, puts in WAG. DJ30's managers are like the management of a perennially bad football team: they consistently make the wrong moves and thus consistently stink. AMZN, perhaps?


Earnings beats: WGO, FDX, ORCL


Mortgage apps: +5.1% for the week, rebounding nicely.


OTHER MARKETS
Bonds: 2.902% vs 2.889%. Bonds sell back some after the move to safety Tuesday.

EUR/USD: 1.1594 vs 1.15861

USD/JPY: 110.02 vs 110.03

Oil: 65.49, +0.59

Gold: 1275.40, -3.20


No different news today, no significant changes in the US/China trade issues (indeed, the US is keeping the heat on), but after 6 days downside on DJ30 it is set to bounce. Many other areas held up quite well during the pullback and you would anticipate those resuming their upside. That will be key for this market, more so than the DJ30 bouncing. DJ30 is likely going to struggle until a clearer resolution of the US/China trade issues. During that time we see if RUTX, NASDAQ and even SP400 can again take the lead and push to higher new highs.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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