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Friday, June 8, 2018

Market Alert - Pre-Market

Futures vs FV: SP -4.87; DJ -39.62; NASDAQ -45.50

Futures are off on NYSE indices, but NASDAQ is getting clubbed as AAPL, according to Japan's Nikkei News, is warning suppliers of a 20% year/year drop in parts orders. AAPL is off 2.74 points, and its suppliers are of course down as well (e.g. SWKS, a play from last night is off 2.5+ pts. With those negative coattails, NASDAQ is really struggling. I know it is heresy, but it may be that AAPL has already hit its growth peak. It is a phone company and it does not appear the current management has the same vision of the company's true original visionary. Could be wrong, often am, but this looks familiar to HPQ, Dell when they ran out of growth.

Earnings Beats: AVGO, SFIX, DOCU, ZUMZ, VRNT

G-7: Trump said he wants a G-8 again with Russia. This in response to Macron who wants to 'isolate' the US in a 'G6 +1' affair. Oh, THAT is going to work well for reaching deals. Trump doesn't do that sort of thing and the G7, G6 +1, or G-8 to be will end quickly. It means nothing anyway. Europe has to come to the realization it has high tariffs on us and squeals when we say we will raise ours to match if they don't lower or end theirs. As the old saying goes, you cannot argue with someone who will not recognize he has a problem.

FB: Woes continue as last month a 'bug' posted private comments as public for 14M users (which likely means 140M users in FB speak).

Bonds: 2.935% vs 2.928% 10 year. Bonds weaken after the flash crash in yields.

EUR/USD: 1.1739 vs 1.1797

USD/JPY: 109.42 vs 109.66

Oil: 65.70, -0.25

Gold: 1302.90, -0.10

Futures are well, well off the lows but still heading for a negative open, led lower by NASDAQ after NASDAQ enjoyed that nice run higher that helped lead the market and push NASDAQ to a new high -- barely. NASDAQ is now going to test and give up that high according to the futures.

Thursday saw NASDAQ as a loss leader as well and the NYSE did little to nothing to pick up the slack. Can they show any backbone or is it all NASDAQ, RUTX, SOX? Thus far this morning NYSE is showing relative strength, but that is only because it does not have all the AAPL suppliers as concentrated as NASDAQ. NYSE is hardly set to lead from the looks thus far.

That is the key: still seeing if money will move to other areas as the techs and growth comes back to test the recent moves. Not happening thus far this morning, but from the look of the open, investors will have PLENTY of opportunity to reinstitute bids after this morning.

Jon Johnson, Chief Market Strategist
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