Market Alert - Pre-Market

Futures vs FV: SP -1.68; DJ -74.49; NASDAQ -10.42

Futures were up modestly for a time, but then AMZN announced it is buying pillpack, and that turned WAB from positive (earnings good, buyback) to negative, WMT as well (it had shown interest in pillpack). That dragged everything else lower as well as investors seemed to say 'why not?' and sold NASDAQ futures as well.

It also hurt futures when final Q1 GDP missed estimates. A truly 'why not?' moment.


GDP, 3rd: 2.0 vs 2.2 exp vs 2.2 2nd read. That puts GDP right back where the first read had it.

Culprit? Consumer spending fell form 0.71 to 0.60. Compare this 0.60 read to +2.75% in Q4. There it is.


Earnings beats: WBA; ACN; MKC; BBBY (BL, but same store sales drop)


India: Central bank intervenes to support ruppea after it drops rather quickly.


Russia/US summit/meeting/get together scheduled for 7/16.


China: Shanghai index -23% YTD.


OTHER MARKETS
Bonds: 2.831% vs 2.833%. Holding steady after the surge to just below the 200 day MA

EUR/USD: 1.1555 vs 1.1559

EUR/USD: 110.21 vs 110.21

Oil: 72.44, -0.32

Gold: 1254.40, -1.299


Futures are edging back to the upside toward the open but the action is clear: weakness continues as the market plays around with trying to bounce but then being unable to do so. WED a move higher was trashed. Thursday a move higher was sold pre-market, now coming back. Expect more back and forth in the session.

That said, SP400, NASDAQ at the 50 day MA, RUTX heading that way. SOX at 200 day MA. Those will be the key areas to watch because the first three were market leaders in the last rally and all are at key support. NASDAQ, SP400 have been hanging around, trying to hold. That suggests, just suggests, an attempt to hold here. Combined with the 2 week drop by SP400, SP500, DJ30 and one week drops by leaders NASDAQ, RUTX, these could be support for the relief bounce.

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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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