Market Alert - Pre-Market

Futures vs FV: SP -12.68; DJ -152.89; NASDAQ -61.54

Futures are lower as all indices are down after SP500, DJ30 made modest bounces Friday ahead of the weekend. NASDAQ leads the downside as the turn started Thursday continues with growth struggling more after enjoying the outsized gains through Wednesday.

Trade issues are given the nod again as the reason for the downside. There are some developments that started developing Friday but were confirmed Sunday, early Monday.

China trade: Trump proposes using the International Emergency Economic Powers Act to limit investment by companies with 25% or more Chinese ownership from investing in US tech companies. Further, he proposes further limits on US tech sales to China.

Trade partners: Trump is telling trade partners to remove the trade barriers or face more than reciprocal trade barriers from the US. Again, the administration wants tariffs removed and in order to get that is willing to give trade partners the same treatment they give us as impetus to remove those barriers.


CNBC All-America poll: Trump economic handling approval up to 51% with 38% of democrats approving of his handling. The poll reports record economic optimism.


OTHER MARKETS
Bonds: 2.893% vs 2.985%

EUR/USD: 1.1683, up slightly

USD/JPY: 109.63 vs 109.49

Oil: 69.08, +0.50

Gold: 1270.70, 0.00


Futures are off morning lows hit 3 hours back, but are sagging again as the open nears. Clearly the bids are not ready to move back in, and big tech names are struggling once more. Worried they won't get Chinese investment? That is okay; China would just steal the technology anyway so why make it easy for China's ongoing theft of everything we develop. Tired of it.

Nonetheless, there is money coming out of growth still, but it is also not showing up in SP500, DJ30. Tried to move there Friday but not continuing this morning. Will have to see if, after the initial salvo downside, the bids return to that group and even into growth. Third day downside for NASDAQ, RUTX and company, and a third day can be a transition day in markets.

With the market opening lower and stocks such as INTC (downgraded), NVDA, AMZN opening lower, we will see if they can bounce. For now, NASDAQ futures continue their downside trajectory into the open, dropping 16 points in the past 15 minutes.

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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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