Futures vs FV: SP -4.89; DJ -130.99; NASD -13.59
The day of the downgrade. A slew of downgrades perhaps are pressuring the futures, but it is really tied to BA. Futures gapped lower, rallied just a bit into 8:00ET, but have since slid back to the early morning lows.
BA: Cut production of 737 Max. China suspends order of 100 737 Max. BA is accounting for pretty much all of the DJ30 pre-market losses.
Downgrades: BA, MU, LUV, ROKU, HOG, GE, DLTR, CLX, SBUX, TSLA, ALL. There may be more.
Upgrades: WFC; PG; SNAP; STX; WYNN
TSLA: Bouncing on Fiat paying lots of money to have TSLA as part of its fleet.
Trade: Larry Kudlow says 'great progress' in last week's trade meetings, that there are topics on the table that had not been there before.
Bonds: 2.508% vs 2.499%
EUR/USD: 1.1261, +0.004
USD/JPY: 111.37, -0.38
Oil: 63.20, +0.12
Gold: 1307.40, +11.80
A BA led early week slump as SP500's 7 day streak is threatened. After over a week of gains, a soft open is not bad. would not be that surprised to see stocks rebound, but with the overall gains the past two weeks it is not likely strong. Some stocks have already tested or moved laterally for 2 to 3 days, e.g. GOOG. With a bit more shakeout they could be ready to be the early leaders of the next leg.
Jon Johnson, Chief Market Strategist
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