Market Alert - Pre-Market

Futures vs FV: SP +8.55; DJ 140.79; NADSAQ +23.84

Futures gapped higher, rallied a bit more, and then held steady for 4 hours in a tight trading range. A continuation of the Friday move, but not surging ahead.

NASDAQ, SOX joined RUTX with breakouts. Still waiting for SP500, DJ30, and SP400.

One of the Friday leaders, FB, is down over 2 points on a story that it sold personal data to AAPL, AMZN, Samsung and 57 others over the past decade. FB needs to just admit it is not a social platform for people to communicate but a data mining company that sells the data. We all know that; the value of FB is its selling data for ads. Come on.

Thus, FB is lower, but we will see if the other big names that started upside Friday will continue, e.g. MSFT, INTC, AAPL. Also RHT, TTWO, MXIM, etc.


M&A: MSFT buying GitHub for $7.5B


Trade: Tensions as usual.
China: Says if US imposes tariffs, all agreements thus far are off.

Canada: Trump traveling to Canada this week.

At least the ball is being advanced, for good or bad. Indeed, a White House official says Trump wants a world with no tariffs. The problem is getting China and other countries weened off of lop-sided trade deals and absurd situations such as China being classified as an 'emerging economy.' They don't want to give up the gravy train. It is akin to breaking a drug addict of his addiction. Lots of screaming and hollering as a tough stance is taken. That is what we are seeing, and it makes you shake your head to see allegedly smart people talking about doom simply because the US is now demanding equality in trade. It tells you where there loyalties, i.e. their pocketbooks are.


Deportations threatened: At the US, right? No, Italy. The new Interior Minister is talking about mass deportations.


OTHER MARKETS
Bonds: 2.909% vs 2.902%

EUR/USD: 1.1718 vs 1.166. Euro rebounding from the slam

USD/JPY: 109.48 vs 109.53

Oil: 65.42, -0.39. Oil still looks as if it is heading toward 60.

Gold: 1301.40, +2.10


Stocks are going to try their hand with a higher open again. Last week there were lower opens, higher opens, and in the end the market made a break upside -- almost. Hardly unanimous.

Last week I said MSFT, INTC, FAANG needed to throw in and get NASDAQ and SOX moving upside. They did Friday and will see if they can continue to start this week. Over the weekend I said SP500, DJ30 needed to throw in. Okay, we will see.

The breaks higher were needed and timely. Now it is the same question -- can they hold and then extend the moves? Again, looking at AAPL, TTWO, RHT and others to continue their moves and maybe get more volume.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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