Futures vs FV: SP -5.06; DJ -98.00; NASDAQ -22.12
Futures opened lower and have mostly range-traded since with an ever so slight trend higher toward the open. Most of that 'trend' is the in the past 20 minutes.
Things were off to a bad start with downgrades, weak economic data and just nothing much else as the market awaits Powell's testimony to Congress. Testimony perhaps, but it is also a major political dog and pony show as the democrats try to get the Fed chair to support how tax cuts caused the deficit (ignoring the $16T increase under the most recent democratic President with higher taxes) while republicans try to say deficits don't matter now that a republican is in office. The chameleons of politics.
Housing starts: -11.2% versus -1.3% expected. -10.9% year/year, the worst showing since 3/2011.
Permits: +0.3% vs -2.9% expected. Oh wow, a beat. Much rejoicing. Yea.
Case/Schiller: Slowest housing price increase since 8/2015
Earnings Beats: M (cut 100 management jobs); Smucker; SHAK; ETSY; THC
Misses: HD (TL, BL, lowered guidance); HTZ (BL); Discovery Comm (TL)
Downgrades: CAT (UBS)
TSLA: SEC wants Musk held in contempt of court for his tweets.
Fed: Powell to speak to Congress.
Trump: In Viet Nam to meet with NKorea leader. Funny story. NK leader took the train to Hanoi, had to stop in China for a mega smoking break. Okay, not that funny. Amusing.
OTHER MARKETS
Bonds: 3.636% vs 2.677% 10 year
EUR/USD: 1.1357 vs 1.1363
USD/JPY: 110.74 vs 111.32
Oil: 55.55, +0.07
Gold: 1328.30, -1.20
Futures waffly ahead of the open, not that bad of weakness. Bids have returned each time this has unfolded, so we will see if they return again. Of course there are the 'end is here' websites saying this is a 'quadruple top.' At some point they will be right, likely when they least expect it. Anyway, everyone is watching SP500 2800, and that makes it suspect right off as any resistance. Watched pot syndrome.
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Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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