Market Alert - Pre-Market

Futures vs FV: SP +0.65; DJ +22.11: NASDAQ +0.36

Futures started soft, not a bad thing in an upward trending market. Sure enough, futures are recovering toward the bell with index futures just turning positive. NASDAQ hit a new high Tuesday and looks to possibly extend it. Low to high is good.


Kudlow is speaking at Advancing Alpha. Noted the US is in a growth recession since before 2009. That the 2% rate is a growth recession, not growth.

He says that more pro-growth options are under consideration, and there may be tax cuts 2.0, 3.0, 4.0.

Big news: he says he hears that Merkel has been working on Trump's proposal to get rid of tariffs and that Juncker is coming with a 'free trade offer' to the US. That is BIG news.

Yield Curve: Kudlow says that Ron Insana reminded him that the NY Fed studies show the important yield curve is the 10 year compared to the 91 day treasury. By that measure, through June there is just a 12.5% chance of recession in the coming year as measured by that yield curve.


Housing Starts, June: -12.3% vs -2.2% expected

Permits: -2.2% vs +2.2% expected


GOOG: Hit with a $5B antitrust fine by the EU on its android system. Trade war retaliation?


Earnings beats: MS, UAL, CSX


OTHER MARKETS
Bonds: 2.833% vs 2.86%. Bonds rallying

EUR/USD: 1.1621 vs 1.1659

USD/JPY: 112.79 vs 112.86

Oil: 67.66, -0.43

Gold: 1225.20, -2.10


Futures continue to slow walk upside into the open. That looks like good action to continue the upside.

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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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