Market Alert - PreMarket

Futures vs FV: SP -22.60; DJ -161.00; NASD -123.93

Futures started slightly lower but that has tailed off significantly as the premarket session unfolded.

Trade: After the Administration blacklisted Huawei and related companies, GOOG pulled Huawei's android license. INTC cut ties as well. I would expect some kind of retaliation against AAPL.

GS says tariffs on all Chinese goods would cut corporate profits 6%.

China says it is in 'no rush' to restart trade talks with US.


M&A: S/TMOS merger set to receive approval.


Fed: Atlanta Fed governor says he is not anticipating a rate cut in 2019 despite what the market says.


Upgrades: TGT; UAL; GD; ZOOM;

Downgrades: DB (sell); AAL; TSLA; AAPL (price target lowered)


Jobs: F cutting 7,000 positions (10%), mostly in Europe


OTHER MARKETS
Bonds: 2.389% VS 2.394%

EUR/USD: 1.1164, +0.0007

USD/JPY: 109.87, -0.20

Oil: 62.69, -0.07

Gold: 1275.90, +0.20


Futures trying to stabilize the past half hour, working laterally, starting to rise some off the lows. Still a weak open.

Many focusing on the semiconductors -- understandably as they led the market higher, are a key component, and closed last week at the top of the prior range, giving up the breakout to a new high. This is a key level to make a stand. Not holding my breath on that one just yet.

Gap lower makes it harder to enter downside, but if there is a bit of a bounce, that could open some opportunities.








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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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