Futures vs FV: SP -0.16; DJ -2.68; -6.94
NASDAQ futures lagging all morning as they were negative while SP500, DJ futures modestly positive over the flat line all morning. NASDAQ flipped positive or at least near the flat line, but has drifted back to negative. The upside bias/drift reasserted itself, though thus far it is certainly not a surge or rush back into buying.
Not a big news morning. The Mueller report was concluded, not released, over the weekend, with just the AG providing his summary of the findings. That will keep DC busy for a bit and if lucky, away from doing anything.
Analysts active given it is a Monday.
Upgrades: ORLY; HIBB; FOXA
Downgrades: TSLA; TXN; ADI
AAPL: Unveiling its streaming services today as it makes a play for that market dominated by NFLX.
Yellen: Doesn't see the current conditions leading to recession. If anything, she sees the conditions perhaps in the future warranting a rate cut.
Bonds: 2.443% versus 2.437% 10 year
EUR/USD: 1.132 vs 1.13009
USD/JPY: 110.03 vs 109.24
Oil: 58.80, -0.24
Gold: 1318.70, +6.40
To recap the market situation from the weekend report, Friday SP500 and NASD reversed their break out from the resistance range. If they are to advance near term they need to make a shake off Friday and recover the breakout status and resume. If not, they fall back into the range and at a minimum have to do more lateral work to try again. SOX' requirements are similar.
RUTX and SP400 are also very much worth watching even though they have lagged of late as the large caps took over the move. If you have economic worries, these two indices reflect those type of issues. RUTX broke below its prior test level from the December rally, and it could lead some downside. 1475-1470 is important there, but that is another 25-30 points lower.
Jon Johnson, Chief Market Strategist
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