US Markets

• S&P 500 -19.25 points
• US 10-year yields 1.54%
• Dollar Index 98.90
• VIX 18.95
• Oil $52.50

International Markets

• Shanghai +0.29%
• HSI +0.28%
• Nikkei +0.99%
• KOSPI +1.2%
• FTSE -0.20%
• DAX -0.98%

MACRO

Producer Price Index was much worse than expected, with:

• PPI Final Demand up +1.4% y/y vs. expectations +1.8%
• PPI Ex- Food & Energy +2.0% y/y vs. expectations +2.3%
• PPI Ex- Food, Energy & Trade services +1.7%

Jay Powell Speaks today at 1:50 PM

S&P 500 (SPY)

Well, it looks like we are going to refill that gap at 2910 based on the futures. Anyway, you have to love it. The first headline I read this morning was how the Asian markets were up last night ahead of “high-level trade talks between the US and China.” But for some reason, our markets are down as optimism on “trade headlines dim.”

Whatever.

Alibaba (BABA)

Alibaba is falling on headlines that the White House is considering placing limits one what Pension funds can invest in Chinese Stocks. The $166 level has been pretty critical for the stock in recent weeks. If that price doesn’t hold, then BABA is likely to fall to $151.

JD (JD)

JD.com is in the same boat, and for JD, $27.50 is a significant level to watch. A drop below that price pushes shares to $26.10.

Microsoft (MSFT)

Microsoft may get a boost today after it was upgraded by Jefferies to Buy from Hold while upping its price target to $160 from $93. The stock has been range-bound but has generally been trending lower more recently.

Shopify (SHOP)

Shopify got within centimeters of our $333 target and is now pulling back. $315 should act as a powerful level of resistance.

ROKU (ROKU)

Roku is reaching the downtrend, and the question here is, what happens next? I noted yesterday in my mid-day update I thought the stock would break $100.

Have a great one