Futures vs FV: SP +1.49; DJ flat; NASDAQ +0.31
Futures sluggish all morning as the move higher Friday is holding but is not seeing further upside. Not all that surprising after a better Friday. The essential item is that the move is not reversed. Thus far, not bad.
Earnings are at the fore this week. More banks thus far.
MISS: GS (TL); WFC (TL). They were not bad, just not JPM and thus not inspiring any bids.
Upgrades: WDC; LEVI
Downgrades: WFC; CVX
Empire Manufacturing, April: 10.1 vs 9.0 exp vs 3.7 March
Fed: Evans on CNBC. No real issue with Trump commentary as long as Fed ignores it. Says does not see need for rate hikes into the fall of 2020 as he defended the December hike.
Trump: Tweets the economic growth could have been 4%, Dow another 5K to 10K higher if the Fed had not engaged in QT. The usual. It is worth repeating given the commentary of the FOMC members and Trump that the Fed hiked into a slowdown and those hikes are still out there and are just now working into the economy. Thus, Evan's commentary is somewhat incongruous and also perhaps Trump's comments were somewhat on point. 4%? Who knows, but it would have been better than it was.
Bonds: 2.569% vs 2.562%
EUR/USD: 1.1311, +0.001
USD/JPY: 112.00, flat
Oil: 63.33, -0.56
Gold: 1286.90, -8.30
Futures remain flat-lined heading toward the open. Again, some testing, retrenching is fine. Don't want to see any serious selling emerge in response to the Friday move. Thus, watching the industrials as they performed well to end the week and of course the financials to see if they can continue perking up even with GS and WFC earnings less than strong. Chips are the leaders and thus they need to continue holding gains and producing moves.
Jon Johnson, Chief Market Strategist
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