Market Alert - Pre-Market

Futures vs FV: SP -4.43; DJ +56.61; NASD -62.29

Earnings are not providing the lift to stocks after 5 weeks upside with SP500, NASDAQ bumping the old highs. Some key misses as well as weaker Chinese economic news have the buyers putting the wallet on the hip as Art Cashen would say.

China: Weaker PMI with a miss: 50.1 vs 50.5 prior

Services PMI: 54.3 vs 54.8 prior

Caixin PMI; 50.2 vs 50.9 exp vs 50.8 prior.

Huawei: Vodafone says Huawei inserted hidden back doors in its equipment. MSFT and others have reported the same thing. Huawei apparently means 'snake' in Chinese.


Housing: Case/Schiller reports another month of slowing in February.

San Francisco: Housing prices fall for the first time in 7 years, joining Manhattan in price drops.


Earnings beats: MCD; AKS; YUM China; COP; MA

Misses: GOOG (TL); MGM; WDC; LLY (TL)


APC: Berkshire investing $10B in OXY preferred stock to aid in OXY winning the bidding.


OTHER MARKETS
Bonds: 2.541% vs 2.529%

EUR/USD: 1.1216, +0.0031

USD/JPY: 111.38, -0.25

Oil: 64.72, +1.22. Strong rebound.

Gold: 1282.70, +1.20


Futures were already soft then dove lower at 8:40ET. Now attempting to recover some of that loss. Obviously a tech-led weaker session. AAPL afterhours and we anticipate transitioning from upside to downside on that stock -- wish we had done the same on GOOG as it is off 106+ before the open.

We will be looking to see if oil stocks improve their strength again after a few days of weakness. Will look at positions on QCOM downside as well as a few others if they play out with a weakening tech areas.

At the same time we watch for upside in areas that have good patterns and see if they are getting some of the money rotated their way.


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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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