Futures vs FV: SP -23.68; -248.20, -89.62
Earnings are at the forefront to start a week that is loaded with data: earnings, economic, trade, Fed.
Earnings: CAT misses bottom line, blaming China. That has cast a pall on the overall market as a bellwether misses.
NVDA just warned re revenues. Significant warning across all its business sectors. It is not a good release.
Futures gapped lower and things have eroded further the past 2 hours with NVDA's news thumping stocks to new session lows ahead of the bell. The session is turning from just a soft open after a rebound late week to a bloody open. It has the look that another late week move higher is going to get sold and sold aggressively to start a week.
The other 'big' story of the morning is the dissection of Howard Schultz' stating he was considering an independent run for President. There will be 30 or more people vying for the head of the democratic ticket.
This week the Fed (2 day meeting with Wed Powell presser), earnings (AAPL, AMZN, FB will be key), trade (talks begin Wednesday with China), tons of economic data culminating with the Jobs Report.
Bonds: 2.753% vs 2.748%. Bonds not surging back upside as yields rise. Not many seeking bond safety today.
EUR/USD: 1.1417 vs 1.411
USD/JPY: 109.37 vs 109.49
Oil: 52.66, -1.03. Back to that key level.
Gold: 1298.70, +0.10
Futures are still trying to find the pre-market low. The NVDA news has hammered an already defensive tape thanks to CAT. The points to watch are the prior resistance levels the indices took out 2 Fridays back, e.g. 50 day MA, bottom of October/December range. The question is whether they can hold that support and keep leg 3 alive.
Jon Johnson, Chief Market Strategist
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