Monday, November 12, 2018

Market Alert - Pre-Market

Futures vs FV: SP -8.11; DJ -67.30; NASDAQ -47.90

A third day lower to start after the Wednesday follow through session. Futures were slightly higher then fell off at 7:45ET as the WSJ reported the US was to release a new plan involving China, the so-called China-IP-Theft-Plan. Recall two weeks back the Administration said as a starting point to any negotiations China would have to give up its IP 'sharing' agreements to do business in China. This is simply codifying that. The irony is, last week stocks jumped a bit on word Trump had ordered the drafting of a trade deal with China. The hilarity is, THIS is what was drafted and now the market visibly slid on its report.

M&A: SAP buying Qualtrics

Oil: Saudis say decreased demand warrants decreased output. Oil is up 0.90. Wow.

Italy: Banca Carige's balance sheet does not balance, showing a 500M euro 'hole.' The EU's third largest economy is struggling and does not want to abide by more EU edicts.

AAPL: Down $5 pre-market as Citi downgrades SWKS, QRVO, AAPL suppliers, due to the iPhone's weaker demand. Peak iPhone. When AAPL announced and started selling $1,000 phones we opined that might just be too much for the phone market. It could be that is the case. Just how many people need all the features on that phone to conduct their daily lives when you have $200-$300 phones that can do the same things? AAPL has a great camera, but just how many people need that great of a camera? It looks as if we are in the process of finding that out.

Upgrades: AAL; BLUE; LB

Bonds: Bond market closed for Veteran's Day. 3.186% 10 year

EUR/USD: 1.1269 vs 1.1335. Dollar rallying again as Europe struggles, another Italian banking issue.

USD/JPY: 113.83 vs 113.87

Oil: 61.09, +0.90. What is that green color on oil? Oh, it is up for a session after 11 sessions lower.

Gold: 1206.10, -2.50

Okay, stocks are sluggish again, making 3 weaker opens after the follow through. One would anticipate if a rebound is coming it will occur after a weaker open today, Tuesday at the latest.

Jon Johnson, Chief Market Strategist

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