Futures v FV: SP +4.3; DJ +39.88; NASDAQ +10.52
Dow futures were up 88 as initial reports were China's response to Trump's trade actions last night were 'measured.' Then China came out with its own counter tariffs and futures cut the gains rapidly.
US: 9/22 will implement 10% tariffs on $200B in Chinese goods, increasing to 25% to start 2019. IF CHINA RETALIATES, another $267B will be added. It appears China has retaliated.
China: Cancelled trade talks. Will implement 10% tariff on $60B of US goods if US implements on 9/22. Will look at/engage in 'qualitative measures' such as port slowdowns, slowing approvals.
Trump: China is meddling in US elections by attacking US farm and industrial products.
Ross: China is 'out of bullets' in terms of what it can tariff. But, what about those qualitative measures . . .?
Earnings misses: AZO (TL); GIS (TL); FDX (BL); ORCL (TL). As noted a month ago, some disturbing increase in top line misses.
WMT upgraded
AAPL: Exempted from new tariffs on China
M&A: Univar buying Nexeo (chemical industry)
OTHER MARKETS
Bonds: 3.009% vs 2.99%
EUR/USD: 1.711 vs 1.1682
USD/JPY: 112.04 vs 111.84
Oil: 69.89, +0.98
Gold: 1250.90, +0.10
Futures gapped higher in recovery, worked upside nicely at 8:00ET, but then the China tariffs dropped the futures. They are, however, holding the gap level from the start of the session.
Would not be surprised to see selling attempts again during the morning session then a steadier bid returns in the afternoon.
______________________________________
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
Alert Key
http://www.investmenthouse.com/alertkey.htm
PLEASE DO NOT REPLY TO THIS EMAIL. USE THE CONTACT US PAGE ON OUR WEBSITE.
Customer Support: http://investmenthouse.com/contact_us.php
No comments:
Post a Comment