Market Alert - Pre-Market

Futures vs FV: SP -2.00; DJ -15.00; NASDAQ +2.75

Futures opened the session sharply lower as the Turkey contagion disease continued thanks to Erdogan and his threats of prison for anyone, citizen or not, he believes is interfering with Turkey's finance and economics. The rantings of a tin-plated dictator with delusions of god-hood (from an old 'Star Trek' episode).

Futures are well off their lows, aided at one point by a TWTR post that the American Pastor would be released by 8-15. That tweet has been debunked, but futures did not roll back over. They are just off recovery highs, holding the move toward the open.


Gold: trading at 1206, but spot prices are below 1200, an indication the world is handling the new and continuing Turkey situation well enough. If no one is rushing to gold, that shows not that much fear. It does not hurt that the US dollar remains quite strong and gold is priced in dollars.


TSLA: First lawsuits filed. Not a record in time for plaintiff's lawyers but not slow. Of course the 'funding secured' tweet is the target as stories from the weekend indicate the Saudi sovereign fund said it had no interest in TSLA. Of course, then Bloomberg reports that the Saudi fund is interested in talks. That may be, however, too late in the time line to help Musk. The stock is okay; TSLA futures are up 10 points.


NFLX: CFO is said to be resigning. NFLX is trading -6 points pre-market as investors speculate whether another exec was caught with his/her pants down so to speak.


OTHER MARKETS
Bonds: 2.88% versus 2.873%

EUR/USD: 1.1421 vs 1.1411

USD/JPY: 110.76 vs 110.92

Oil: 67.38, -0.25

Gold: 1208.80, -10.2


The road remains rocky. Not only are the trade issues still very much at the forefront of investor concern, emerging markets are at risk as CDS (credit default swaps, the price of the price of insuring risk) surge as the buzz word for the week is again 'contagion'.

Stocks are trying to stabilize, but that does not mean there will not be more volatility as new headlines emerge.

As noted over the weekend, even with all of the Turkey issues on top of trade, the indices themselves are thus far holding their trends quite well. There are also good moves being tested, and HOW they respond from these tests will tell the more important story for the stock indices trying to avoid rolling over at the highs and indeed put in new, clear and clean new highs.



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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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