Futures vs FV: SP 8.48; DJ -50.25; NASDAQ -18.43
After a down Monday in global markets, some weakness remains to start Tuesday as the US rejoins trade. Some of the 'doomer' websites call it a 'sea of red' as global stocks 'tumble.' Goodness, the sky must be falling.
To reorient things, the indices are in leg four, are moving higher toward resistance, SP400 trying to move through that same resistance. SP500 IS 25 to 50 points from resistance -- they are of course getting closer. Markets that move higher after corrections do have to get to resistance ultimately.
Not a lot of news, just a lot of the same.
Trade: US/China resume talks in DC. Navarro joins the fray. This as reports are that China renewed its cyber attacks, hacking and stealing from GE, BA, TMUS and others. The IP 'sharing' issue is one we are not close on.
With the EU, the President is talking about going ahead with auto tariffs. Of course, Europe is angered.
Thus, trade is still a question mark and will remain a question mark until it is announced we don't have a deal on the IP and other 'structural' issues and the market is disappointed China is going to buy some more stuff from us and that is all we can accomplish. Tariffs will be upped, China's economy will collapse more, then late year perhaps China succumbs to the pressure. Perhaps. It has to steal to advance and it knows that.
Earnings: WMT boosts.
Beats: WM (+43% e-commerce); AAP (BL)
Misses: HSBC; BHP
Upgrades: MCD; PGE
Downgrades: PZZA; ULTA; LULU
Bonds: 2.645 vs 2.664
EUR/USD: 1.1295 vs 1.1292
USD/JPY: 110.69 vs 110.469
Oil: 55.85, +0.26. Moving higher off that test of 52.50 support.
Oil: 1334.90, +12.80
Futures bouncing along the lows. The indices are still trending higher. Anticipating bids to return, perhaps today, but in any event at some point UNLESS trade talks collapse.
Jon Johnson, Chief Market Strategist
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