Market Alert - Pre-Market

Futures vs FV: SP +9.64; DJ +122.95; NASDAQ +34.40

After a modest bounce Thursday that held where they had to, stocks are set for some more short covering on Friday ahead of a shorter week next week (closed July 4, open half day July 3).

Futures gapped higher to open the early morning session and have eroded gains in a broad range since. Heading toward the open they are just off the bottom of the morning range, still sporting good gains.

These kind of opens are a mixed upside blessing. Good to see the market continue the Thursday upside momentum, but they are also targets for the sellers -- that the recent trade shows are out there -- to sell at. The key, as always, is whether the bids can hold up to some inevitable selling attempts off the open and then again in the mid to late afternoon.

The news is interesting.

Axios reports that Trump is seeking a WTO withdrawal. Mnuchin and others are saying that is an exaggeration. That does indicate, however, that Trump does not like the WTO. Wow, shocking. No surprise, but the status quo hates even surprises that are not surprises.


Personal Income: 0.4 vs 0.2 prior (from 0.3)

Spending: 0.2 vs 0.5 prior (from 0.6)

Core PCE: 2.00% year/year. This is a Fed watch point and is at 2%


Earnings Beats: KBH, NKE

Misses: STZ (BL)


Stress Tests: DB is the only bank missing any part of the tests; it missed one part but not cataclysmic.


OTHER MARKETS
Bonds: 2.842% vs 2.84%

EUR/USD: 1.1643 vs 1.1564

USD/JPY: 110.64 vs 110.50

Oil: 73.48, +0.03

Gold: 1253.60, +2.60


As noted last night, some of the key leaders in the last rally are holding very nice setups. TTWO, TWTR, VMW, VRSN, DBX, etc. look very interesting. It is Friday, however, and things can change over the weekend on what has to still be classified as a relief bounce effort. We will see how they hold their moves, and if they look good, can pick up some partial positions.

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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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