Thursday, April 04, 2019

Market Alert - Pre-Market

Futures vs FV: SP +2.55; DJ +28.87; NASDAQ +1.28

All markets are flattish this morning after the Wed rush higher that once again saw a strong move mitigated as it closed well off the highs. Solid move, but not as solid as it was. Nonetheless, with no sellers, the market continues to find buyers after each test.

The US jobs report is Friday and after the 20K from the prior month many want to see not only a much better print but also a revision of that prior month. Thus, after a week on the upside in stocks, a bit of a pause.

Even so, stock futures are slowly rising toward the bell as that overall upward bias remains.

Trade: Trump to meet with China VP. Remember, the deal is 90% done. Just that the 10% is the hardest part. Bloomberg reports that Trump is willing to give China 6 years, until 2025, to meet the quantity levels of US goods to be purchased and for the full implementation of US companies being 100% owned by those companies while operating in China. Thus, 5 years down the road MAYBE China will do what we want, likely not. And during that period? Apparently, more of what we have now.

Germany: Factory Orders drop 8.4% year/year, the largest decline since, you guessed it, the financial crisis.

TSLA: Deliveries down 31%, but reiterates its full year guidance. Shares are hammered 10% lower. Great Elon.

Upgrades: FB; DIS; ETSY

Downgrades: MU; ROKU

Warnings: ODP

Bonds: 2.519% vs 2.528%

EUR/USD: flat

USD/JPY: 111.46, -0.01

Oil: 62.54, +0.08

Gold: 1287.70, -7.60

Stocks set to open flattish after a big move higher Wed. After a week higher a bit of sluggishness after a solid move is normal. Thus far, bids have returned after a short hiatus. Still, after that week higher, a bit of backfilling to present better entries that are not after a week of gains is welcome.

Jon Johnson, Chief Market Strategist

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