Market Alert - Pre-Market

Futures vs FV: SP 5.56; DJ 77.41; NASDAQ 16.00

Futures hold modest gains while much of the world markets struggled a bit. Earnings are cranking up and there is a somewhat accompanying dearth of news as it does.

Trade: The trade news is quiet for a second session.


FOMC: No Fed statements this morning but CNBC ran a piece "Don't Fear the Yield Curve," discussing why this time it is different. The 10 year/2 year spread is 29BP, a level that historically gives a recession warning. As with Greenspan and his 'conundrum' dismissal of the flat curve, this Fed risks ignoring the yield curve right into recession.


Beats: PEP. Sugar water and snacks post good earnings. When you look at the waistlines around America, you are not surprised. Seriously, take a look at the obesity statistics. I was shocked, but then not. The food pyramid promulgated by the government works! We all look like pyramids!


TSLA: Courts the wrath of Trump as it plans a 500,000/year unit plant in Shanghai.


OTHER MARKETS
Bonds: 2.873% vs 2.858%. Bonds selling, yields rising.

EUR/USD: 1.1718 VS 1.1752. Euro stumbles some after a bounce.

USD/JPY: 111.19 vs 110.80. Dollar jumps against yen

Oil: 74.33, +0.48

Gold; 1254.80, -4.80


Monday saw financials and industrials start to stir to the upside to support the rally in the other indices. Watching for that to continue and also watching closely how the NASDAQ, RUTX leaders to this point continue to move.

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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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