Market Alert - Pre-Market

Futures vs FV: SP -1.76; DJ -60.80; NASDAQ +13.29

Futures are mixed but showing the same bias of the past several sessions, i.e. NASDAQ leading as NFLX, AMZN, et al continue higher premarket. Unlike other sessions, quite a bit of news today.

MU: Solid earnings rallying this stock as well as other chip stocks. Case in point, the INTC CEO just resigned for a relationship with another INTC employee (violating company policy), and the stock is jumping after initially tanking.


Trade: Wilbur Ross says the ultimate objective of the US actions is to lower tariffs. Simple. Get tariffs lower and the playing field equal.

China: Market News International reports that China is quietly approaching the US to decrease the US tariffs and proposed tariffs on Chinese goods. At the same time the official China news rails about the illegal trade activities of the US, etc. That they can make these claims with a straight face is somewhat comical in itself.


Philly Fed, June: 19.9 vs 27.0 ex vs 34.4 prior. Low for 2018 and the lowest since 11/2016 (10.0).


BOE: Leaves rates unchanged, but the chief economist says he wants a rate hike. Pound is up, dollar lower.


Oil: The day before the OPEC meeting, Saudi Arabia proposes a 1M bbl/day production increase.


NFLX: Receives its second $500 price target for the week. Frothy?


Earnings beats: DRI; KR; MU


OTHER MARKETS
Bonds: 2.911% vs 2.937%. Bonds rebound again after the Wed weakness

EUR/USD: 1.1587 vs 1.1576

USD/JPY: 110.29 vs 110.37

Oil: 65.00, -0.71

Gold: 1266.60, -7.90


Futures are well off the early morning lows. Rallied into 8:00ET but then were hit with a quick round of selling. They have since fought back.

DJ30 is about to start its ninth session lower. NASDAQ FAANG are starting higher yet again, indeed new highs. Do not be surprised if DJ30 reverses to positive today and starts at least a relief move. SP500 as well.

Last night I pointed out that the DJ30, SP500 charts are NOT bad charts. They just are not getting any bids right now. That has the look and now the feel it is about to change.

The question is whether funds come out of the recent leaders (RUTX, NASDAQ) and go back into industrial areas and perhaps even the chips that have lagged. MU's earnings appear to have reignited that group.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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