Futures vs FV: SP -8.28; DJ -83.29; NASDAQ -25.38
Futures are off the lows but stocks are set to open lower, not getting clobbered, but not just a soft pullback. Overall, nothing that in itself threatens the recent upside moves and frankly allows the bids to reset. Even so, how SP400 and RUTX react with their nascent moves off near support will be quite important.
Trade: The issue returns . . .
Wilbur Ross: States there are 'positive developments' with Mexico. I am assuming he is not commenting on his summer vacation plans.
China: Commenting on Kudlow's WED statements, China says that Kudlow "distorted facts and made bogus accusations is shocking beyond imagination." Sorry, I had to laugh at the faux outrage. Beyond imagination? Seriously? It is like reading one of those spam emails you receive in broken English that misuses slang phrases. I have to say I am shocked, shocked, that China would respond in such a manner. There.
Yuan: China is 'shocked' about some true statements when it just started a QE of its own, flooding banks with liquidity and telling them to lend and spend. The yuan continues to dive. China is in a rough spot as its stock and bond markets are plowing new lows again and again.
Philly Fed, July: 25.7 vs 22.0 exp vs 19.9 June. No issues in that region. Take THAT, China.
Earnings beats: IBM; EBAY (but lowered guidance); DHR
Misses: TRV (BL); AXP (TL)
Warnings: TSM, AA
OTHER MARKETS
Bonds: 2.875% vs 2.88%
EUR/USD: 1.1589 vs 1.1647
USD/JPY: 113.05 vs 112.78
Oil: 68.29, -0.47
Gold: 1213.70, -14.20
Dollar stronger, bonds rally a bit, China upset, Philly solid. Just rattling the trade issues, however, is too much. A slow start, but not a massively negative start, will test the willingness of bidders after an impressive 2 week move by the NYSE large caps. Again, will the recently lagging small and midcaps pick up the pace as these other areas pause?
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Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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