Market Alert - Pre-Market

Futures vs FV: SP -5.95; DJ -58.93; NASDAQ -23.87

Stock futures opened flat pre-market then sold off on the Italian budget crisis that has sent its stocks and currency down hard and bonds up. Italy is pushing for a budge that is at odds with the EU dictatorship as Italy tries to save itself. It should Ital-exit but I guess the UK's horrible handling of its exit strategy made Italy take pause. The idea is good but the execution has been horrid.

Futures have recovered starting 8:00ET, but the move upside is very slow and not much behind it. There is a bid, however, and that can slow burn and lead to a continuation of the upside in US stocks from Thursday, though it very well could be just the large caps making the moves again as noted last night.


TSLA: Every station is talking about Musk turning down a decent deal from the SEC and thus the SEC suing Musk in return. TSLA is down 38 points. Oh well.


PCE Core, August: 0.0 vs 0.1 exp vs 0.2 July. Fed's favorite indicator softens so where is that inflation? Will the Fed be able to declare victory after a December hike. It could, but it won't because the Fed is the Fed and it never quits while it is ahead.


Personal Income, August: 0.3 vs 0.4 exp vs 0.3 prior

Personal spending: 0.3 vs 0.3 exp vs 0.4 prior.

Annual spending outpaced income for a seventh straight month. While the doomer websites cry how horrid this is, history says that this is a sign of confidence in consumers and is not most activity based upon confidence? You have to be confident to build a new plant if you are a business or buy a car or home if you are an individual. Otherwise the money just sits there.


Upgrades: AAPL (calls for an 11% price increase); LOW

Earnings: all misses today. MTN (TL); PRGS (TL). The early earnings show top line misses are very predominant. Noted this trend before and this is a real indicator of the economic and therefore market future. Will have to pay attention to this as the earnings season gets underway.

PFE: Once a day lung cancer drug receives approval.


OTHER MARKETS
Bonds: 3.031% vs 3.052%. A bit of a move to safety with the Italy currency, bond, stock moves re its budget.

EUR/USD: 1.1583 vs 1.165. Dollar continues its very recent upside against euro.

USD/JPY: 113.36 vs 113.37

Oil: 72.24, +0.12

Gold: 1188.10, +0.70. A feeble bounce after getting slammed Thursday


Futures stalled their recovery toward the opening bell, but still anticipating a slow recovery in the morning. Then we see if the bids really ignite or if the market heads into the weekend noncommittal.

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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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