Futures vs FV: SP-38.55; DJ -338.45; NASDAQ -90.77
Stock futures faded late in the WED post-regular session close and started even lower early THURS. After an opening gap lower and fade, futures have traded in a range the past four hours. This decline represents the last spurt higher WED when the market put it in gear and pushed DJ30 up almost 1100 points. Now the market has to try and digest that oversized move, a move that is not representative of a strong, normal market. As it does that, the sellers have a shot at the big fat gains and they are taking that shot at the open.
Initial jobless claims: 216K versus 217K prior (from 214K).
Initial claims is about the only story out there.
Trade: Trump considering an executive order prohibiting purchases of ZTE and Huawei equipment.
Foxcon reportedly to make iPhones in India in 2019.
China: Industrial profits -7.2% in November.
That is about it in terms of news. Very quiet.
BONDS: 2.758% vs 2.811%. Bonds back to a safe haven buy, continuing the rally. Not a great endorsement of the WED surge.
EUR/USD: 1.1345 vs 1.1352
USD/JPY: 110.75 vs 111.36. Dollar continues its more recent weakness
Oil: 45.80, -0.42
Gold: 1276.70, +3.70
Futures trading in that range after dropping early. So, the extreme froth from WED will be removed at the open. Will bids then return and continue the rally for another session or will the sellers dictate a one-day wonder where records were set contra the market bias and then the overall bias takes over once again.
Jon Johnson, Chief Market Strategist
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