Futures vs FV: SP -6.95; DJ -57.98; NASDAQ -26.72
Futures traded lower early and have slowly recovered lost ground, but are still trading underwater toward the bell. Not bad high to low, again, in the face of some uncertainty.
Uncertainty 1: Pakistan/India potential to flare up into a hot war as Pakistan shoots down 2 Indian jets after India bombed suspected terrorist camps in Pakistan.
Powell: Second day of testimony and he hopefully will receive questions for Ocasio-Cortez. That should be interesting sidebar on the day as the colossally ignorant questions the colossally arrogant (though Powell himself is not arrogant -- the Fed is).
Trump/Kim chumming it up in Hanoi.
Mortgages: +5.3% vs +3.6%. Two weeks of gains as rates are a bit lower.
Earnings beats: BBY (5 quarters beating); CPB; PANW
Misses: LOW (TL); ODP (TL); DF (BL); WWW (TL, BL); PZZA (TL, BL); MYL (BL); GWRE (TL)
Volatility: very low once again as stocks bump resistance. Treasury volatility levels are at all-time lows.
Bonds: 2.655% versus 2.636% 10 year
EUR/USD: 1.138 vs 1.1391. Dollar a bit up
USD/JPY: 110.71 vs 110.53. Dollar a bit down
Oil: 56.71, +1.21
Gold: 1337.70, -0.80
Futures off, but that is not a bad thing in a rising market. As noted with the Tuesday market weakness, it was lower but nothing horrid. Of course the selling can start small as Egg Shen noted in 'Big Trouble in Little China.'
Indices are at resistance, having to deal with some headline headwinds, but nothing that is causing major selling. The resistance question mark is still a question as the indices fade some from bumping it. Sellers are still not jumping on stocks with a perceived opening so it could be the market just posts a modest fade, resets, then takes on the resistance anew.
Jon Johnson, Chief Market Strategist
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