Futures vs FV: SP +1.50; DJ +33.00; NASD +12.00
Dow futures were up 100+ ahead of the morning economic data. Trump said to be considering a 60 day extension of the March 1 trade agreement deadline. That offset last night's worry about the border deal.
Then the economic data deflated the morning gains.
Retail Sales, December: -1.2 vs 0.2% exp vs 0.1 prior (from 0.2)
Ex-autos: -1.8 vs 0.1 exp vs 0.0 (from 0.2 prior)
Final demand -1.7%
Largest drop month over month since 2009.
Online sales -3.9%
Bonds: 2.650 vs 2.76% 10 year
EUR/USD: 1.298 VS 1.126
USD/JPY: 110.69 VS 111.00
Oil 54.06, +0.16
Gold: 1314.10, -1.00
Futures continue lower after the data, not finding the bottom yet for the morning. The reaction shows the market is concerned about the economy. The data had been good enough, coming back after a slowing. This casts doubt on that, and in conjunction with the other trade and budget news it is putting a stymie on the upside. The key will be whether the bids get over this and can push the indices up toward the top of the range.
Jon Johnson, Chief Market Strategist
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