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Tuesday, January 24, 2017

Market Alert - Pre-Market

Futures vs FV: SP +3.00; DJ +13.15; NADSAQ +9.8

Futures are stone cold flat for the most part as the market takes in a lot of earnings and still contemplates the new Trump administration's policies. I have to say, watching for what comes out of the administration is much more exciting than things have been in this regard for quite some time. New regulations dumping into the Federal Register late, late Friday night was not working for most of the US.

So, Trump is meeting with CEO's of the big 3 automakers today, meeting with some in Congress, Senate, and on and on.

The democrats are proposing at $1T infrastructure package, dangling out that they will 'work with' Trump if he accepts it. Get it in writing! It will be interesting to study the breakdown. The items covered are the usual things but the how, when, where, who controls it, etc. are the big issues.


Earnings beats: BABA; DHI; HYOO; DD; TRV; LMT (but lowered guidance)

Misses: JNJ (TL); VZ (BL); DD (TL)

IN line TL: MMM; KC

UK: Supreme Court rules Parliament must vote on Brexit. The height of governmental arrogance. You put it to the people to make the choice, sure they will not go against you, and when they do, put it to another vote but not by the people, by the people who have vested interests in keeping the status quo though they supposedly represent the people.


World PMI's

Japan: 52.8 vs 52.3 exp vs 52.4

EU: 55.1 VS 54.8 VS 54.9

Germany: 56.5 vs 55.4 vs 55.6


OTHER MARKETS
Bonds: 2.43% vs 2.40% 10 year. Stabilizing some after a bounce higher on worries of what the new administration was going to do.

EUR/USD: 1.0754 vs 1.0761. Dollar recovers some of the recent lost ground.

USD/JPY: 113.228 vs 112.736

Oil: 53.16, 0.41

Gold: 1214.00, -1.60


Stock futures are set to open higher and are improving toward the bell. An upside start for sure, but of course the same questions remain: can it hold and will it lead to a breakout?

As stated before, the market is in the midst of digesting a lot of data each day, not just from economics and earnings, but the plans of the new administration, the odds of those plans being placed into action, and the result of those plans. All we can do is look at good stocks making good moves and make good entries.

Stocks are going to open higher. Some plays we can enter as the move continues, many we want to see hold the move. We will see how this early bump plays out and how the leaders act. Are more going to step up and take the lead to move out of this range?


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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Monday, January 23, 2017

Market Alert - Pre-Market

Futures vs FV: SP -2.71; DJ -12.25; NASDAQ -5.90

After the first positive inauguration Friday in 50 years, stocks are starting lower. Why? Not a lot on the policy front yet coming from the White House, at least nothing unexpected. But, they did go to three balls Friday night so perhaps expecting too much for the weekend? The week is packed with activity in terms of the new President's plans, starting this morning with a meeting several manufacturing CEO's.

Trade: Trump is signing an EX-O to take the US out of TTP and calling for a renegotiation of NAFTA. For those who are not involved in trade, NAFTA sets 0 tariffs between Canada, US, Mexico for goods made in those countries. That is great. The issue is taxes on goods entering. The US has no tax on goods coming in from Canada and Mexico. Canada, for instance, has a 5% GST (Goods and Services Tax), a VAT, on all goods entering the country. So, by legislation, Canada has set a 'border tax' on goods entering Canada despite supposed 'free trade' with the US, and that makes it VERY difficult to sell US goods in Canada as the relative cost is such that people don't see it as a value and just don't buy. Thus importers don't import for resale and there is no real 'free trade.' That is why Trump talked of placing a 'border tax' on Mexico and Canada as a negotiation tool to get them to get rid of those taxes on US goods entering their countries. No mystery, no heavy-handedness, just trying to get true fairness in what is supposed to be free trade. Bad deal that allowed the countries to run around it by imposing taxes. Again, a bad deal.

Jobs: HLT to add 25K jobs, not just in the US but worldwide. Foxcomm, the huge China manufacturing company that is run by the government reports it is contemplating building a manufacturing plant in PA. Holy cr*p, that is huge. Huge. Why? Because China is taking a hard line in its official commentary regarding the Trump presidency. Then its actions are 'we better get in on this.' Did anyone say huge?

Earnings beats: MCD

Misses: HAL (TL)

Fed: No scheduled events this week. Hurrah! Hurrah! It is kind of like when Congress is not in session. Whew.


OTHER MARKETS
Bonds: 2.441% vs 2.47%. Bond rallying as no set policies or at least unexpected ones.

EUR/USD: 1.0731 VS 1.0702. Euro bounces.

USD/JPY: 113.41 vs 114.68. Yen strengthens as well. Dollar is making an important test, still at the 50 day MA's on this pullback.

Oil: 52.37, -0.85

Gold: 1212.40, +7.50


Futures down all morning but on the comeback trail into the open. AAPL suing QCOM over patent violations, China's Foxcomm talking about building a US plant, more jobs being announced. You know, you might think that companies were really NOT spending any money (as we repeatedly reported), instead waiting for a better risk/reward environment.

It could very well be that this weaker open gives way to green to start the week. We like that more as noted over the weekend: no big news to gap stocks, just letting the upside bias work with good low to high moves that give the opportunity to enter. We will see if there is that low to high move and if they can hold those gains. Lots of stocks with nice setups, but many of the setups depend upon them holding the moves.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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Friday, January 20, 2017

Market Alert - Afternoon session

Trump is now President Trump and immediately on the White House website there is a post that the administration will create 25M jobs, grow GDP at 4%, and lower taxes for all Americans as Trump vows to transfer power from "Washington to the people." All in a day's work I suppose.

Stocks started higher then skid into the ceremony. The past half hour they have rebounded. All the while they held the positive. Doesn't look as if it will be a Dow 20K inauguration as the acceptance speech was, of course, light on details. Still waiting for the executive orders to be signed and that may provide some lift -- or may not.

SP500 6.50, 0.29%
NASDAQ 14.11, 0.25%
DJ30 72.49, 0.36%
SP400 0.49%
RUTX 0.44%
SOX 1.50%

We picked up some ATHM early as it continued the move only to see it spit the bait back at us. Picked up some VMW and it is working pretty well enough.

For now mostly watching what the shakeout will be in the afternoon session. For now SPY has recovered to the opening price.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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Market Alert - Pre-Market

Futures vs FV: SP +7.26; DJ +53.6; NASDAQ +18.03

After a pensive Thursday pre-inauguration, it would appear investors and traders feel a bit more confident today, perhaps a 'morning in America again' kind of feeling that inaugurations tend to foster. Good. The country needs it. Or maybe it is just that the protesters in DC have not made an impact yet . . .

Futures up all morning with not a lot to drive them, but there is some news.

Earnings beats: PG; IBM beat, but revenues declined for the 19th straight quarter. Has to be some kind of record.

Misses: GE (TL); AXP (BL)

In line: SLB (TL beat)


China: PBOC injects a lot more liquidity AND reduced bank reserve requirements. I would suggest that things are not going well in China. A country in economic and social strife focuses on foreign issues and China is actively engaged in that. The reserve requirement reduction is a sign it is trying to keep the simmer in the populace from starting to boil.


Australia: 4 dead, 20 injured as car driver, reportedly shouting the infamous radical Islam phrase, plowed into a crowd. How brave.

Inaugural: 11:30 ET the ceremony starts. 12:00 swearing in. Then we wait and see what kind of executive orders issue. Speculation is TPP out, Keystone pipeline in, NAFTA preliminary removal actions begin. Also the Scalia replacement is expected to be announced.


OTHER MARKETS:
Bonds: 2.489% vs 2.468%

EUR/USD: 1.0654 vs 1.0655

USD/JPY: 115.05 vs 114.686

Oil: 52.66, +1.29

Gold: 1203.60, +2.10


Again, futures are up but are now off the highs as the 45th President preps to take office. We will see if they can hold, and if we get some good moves we can pick up some positions in anticipation of perhaps a post-inaugural upside move that continues the post-election rally.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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Thursday, January 19, 2017

Market Alert - Last Hour

There is some concern ahead of the inauguration. Thus far no 'getting ahead of the move' kind of move, unless that move is going to be lower and the Dow and RUTX lead. If DJ30 closes here it will undercut the late December low and put in a lower low following the run to a high in December.

SP500 -9.67, -0.43%
NASDAQ -17.46, -0.31%
DJ30 -84.10, -0.42%
SP400 -0.79%
RUTX -0.83%
SOX -0.51%

DJ30's two slow rounded tops are exerting pressure on that index. The small and midcaps are back at the range lows already after a rather weak bounce attempt. SOX and NASDAQ are not bad, not great, holding the trends. All indices are holding the recent trends/ranges, but that is nothing new, nothing that changes the equation other than how much faster they tested this time.

There is not a lot of news after this morning's flurry of stories on housing starts (+11.3), Philly Fed (23.6), and NFLX' earnings (up but not surging as in October).

Much of the stories center around the inauguration, and that makes sense. Of course you have CNN producing a segment that speculates 'what if' Trump and Pence both somehow died before tomorrow morning? I can only imagine the howls from all sides if CNN ran that story ahead of 2008 or 20012. Or even better, FOX. It has been entertaining no doubt, if not a bit irresponsible.

More talk from Davos with MS CEO saying no 4% growth and criticizing the new administration, forgetting apparently that the inauguration is tomorrow. Soros says Trump will fail, etc. Ironic. Limbaugh said he 'hoped' Obama would fail while Soros just says he will fail. Just as the market sold off and crashed as Soros predicted would happen post-election. Even Davos is all about Trump.

Oil is off on an unexpected build of 2.347M bbl according to the DOE.

As for the data, it is still suspect as the Education Department reveals it has sharply overstated the rate of payback of student debt. Oh well, just another day in the world of high quality, professional data acquisition and compilation.

Plays have toyed with breaking higher, but there is not a lot of conviction in anything today. Even NFLX is off its high after gapping upside. There are some plays struggling more than the market and we may close them, e.g. PETX, KERX. Also, on our remaining WLL stock position, consider selling some calls, letting it drop to the 11ish level and buy them back.

Financial stocks are still fading, chips are a bit off their feed, but nothing major. Problem is, you can several 'nothing major' sessions strung together and then have something a bit more major on your hands. Thus if not holding support, not that wild about holding.

The WILD CARD is the reaction to the inauguration and news of those first executive orders coming out. That could be the turn back up, but of course, this is a Missouri market so it will have to show it.

So, still like the upside potential a lot of stocks show, but they are not making the move and with the two 60+ sentiment readings, a bit more cautious. The question in our minds is whether the market shows a post-inauguration move or just goes straight to jail, i.e. a deeper pullback.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
______________________________________
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Traders Talk: Today's Trade is $FMSA

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Upside Play: FMSA
Next Earnings: 2/2/2017
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Market Alert - Pre-Market

Futures vs FV: SP -0.94; DJ -6.89; NADSAQ +4.56

Futures are nicely off the lows even if they are still negative ahead of the open. Ready to start in the range but showing some upside bias. Perhaps prepping for an inauguration move with some stocks starting earlier than others?

Housing Starts, December: +11.3%
Permits: -0.2%

Philly Fed, January: 23.6 vs 15.3 exp vs 19.7 prior (from 21.5). Seems as if Philly still feels the post-election economic excitement.

Jobless: 234K vs 252k exp vs 249K prior (from 247K). Doesn't mean anything because we are already paying 91.5M not to work as disability payments remain the largest payment segment as they have been since early on in the current Administration's rule.

ECB: Left rates and QE level of purchases unchanged.

MS CEO: 4% growth unlikely under Trump. One of those 'mark it down in your book' statements to see if it turns out.


OTHER MARKETS
Bonds: 2.454% vs 2.422% 10 year

EUR/USD: 1.0617 vs 1.0657. Dollar a bit stronger as the ECB does nothing with its rates or QE buys.

USD/JPY: 114.53 vs 114.538

Oil: 51.57, +0.49

Gold: 1201.70, -10.40. Giving back some of the recent surge and the test of the break over the 50 day MA's is important.


Futures have recovered decently and now you start watching for perhaps an inauguration move that could be bolstered if Trump makes some dramatic executive order reversals on Friday. The investors and traders want to see a concrete signal Trump is going to do what he said OR what the investors/traders think he said. That could get the money back in, the wallet off the hip, the purse opened, etc. It is time to do it at some point around the inauguration.

We feel that may be the last rally of this upside move given the second 60+ sentiment read in 3 weeks, but nothing is locked in stone and timetables certainly are not in terms of the market. So, if there are good stocks making good moves, we typically participate because no one knows how strong a rally can be.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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Wednesday, January 18, 2017

Fwd: A last look at wages

Real average weekly earnings rose 0.2% in December year/year, the slowest since June 2014.  For reference, when the current President took office, real average weekly earnings were growing at 2.5% year/year, right in the teeth of the Great Recession.  In at 2.5%, out at 0.2% after 7 claimed years of recovery for the middle class.  Don't let the door hit your backside on the way out.


 

 


Market Alert - The Close

Tuesday stocks were down a little and Wednesday they were up a little. Yes, a repeat of the past 6 weeks for the NYSE indices and SOX. A slow walk laterally, holding the highs hit in December, but after pricing in the hope of economic growth policies to come, investors and traders are watching the inauguration to see if it will yield actual policies and not just hope. After all, we all saw how well hope worked for the economy the past 8 long 1970's and 1930's-like years. I know, pretty heavy stuff for an introduction, but it fits with a heavy-ish market trying to hold gains and get to something more substantive policy-wise.

And yes, the inauguration can very well be the important factor. Today the story is the new President has '6 or 7' executive orders ready to go on Friday, and what those are and how far they go can very well set the tone for the actions coming. Thus, that could act as the next triggering market event.

Definitely no market triggering event on Wednesday. Stocks started higher, faded negative in a fast drop, worked laterally into the afternoon session, then managed a recovery into the close. The lower to not so lower action, despite inducing major boredom, still shows that underlying upside bias, that hope as it were, in the market. Again, not enough to break it higher on a broad basis, but enough to hold the gains while waiting for something to provide the trigger.

SP500 4.00, 0.18%
NASDAQ 16.92, 0.31%
DJ30 -22.05, -0.11%
SP400 0.43%
RUTX 0.46%
SOX 1.42%

VOLUME: NYSE -14%, NASDAQ +1%. More lower volume lateral move continues.

A/D: NYSE 1.2:1, NASDAQ 1.3:1. Massively narrow breadth yet again, matching the market indecision or decided slog laterally.

Another move to nowhere, but in going nowhere perhaps the indices are heading somewhere. Of course they are. This range will yield a breakout or a breakdown. If earnings and action such as that of NFLX afterhours dominates, the move will be a breakout. NFLX beat earnings and revenues and is up 11 points. Not all stocks are NFLX of course, not by a long shot, but if enough of these favored stocks make nice moves, the rest of the market follows.

The day saw higher consumer prices overall and at the core as rents surged 4.0% year/year, pushing overall shelter costs up 3.6% year/year. TGT slashed guidance with a worrisome retail earnings warning while LOW (Lowe's) announced 2400 full-time worker layoffs.

At the same time Chairman Yellen explained in a speech how monetary policy works and what its goals are. Funny, I did not hear her mention anything about aiding pushing the middle class below 50%, punishing savers with 0% interest rates, playing at least a 50% role in widening the socioeconomic gulf between the very rich and the very poor to all-time US highs in her speech. I wonder if she forgot to read that page.

The Fed's beige book cited 'modest to moderate' growth, everything is coming up great, blah, blah, blah. Of course we know the Fed does not believe this, or at least should not, but that is the company line, the legacy builders working together in the administration and Fed to make sure history smiles upon them.

For surely, even though we are told things are good and given 'proof' in the form of the hourly earnings, we know that is false. Weekly earnings are the key because hourly earnings reported each money are too easily skewed. Those rose just 0.2% in December year/year, the slowest since June 2014. For reference, when the current President took office real average weekly earnings were growing at 2.5% year/year, this in the teeth of the Great Recession. In at 2.5%, out at 0.2%. Impressive indeed.

Then there was smokin' Joe Biden, outgoing VP, who in his farewell speech sounded the same as China's premier in his Davos address, i.e., lamenting how the recent rise in UK, US, and smaller EU country populism could disrupt the carefully planned globalism the ultra-wealthy had labored so hard to achieve. That is something when the US Vice President, second in line for the leader of the free world, and the head of communist China make the same arguments as to how the world should run. That in itself should demonstrate to anyone who remembers anything from the 60's to 80's how much the US has shifted its position. And no, the communists in China have not changed at all; they are just pragmatic and are masters at controlling the populace. Oh yes, and Joe announced he is running for President in 2020.

In any event, none of that impacted markets. We didn't buy anything, closed some WLL (January options and a strong gain), POT (lost on that one as it went to pot), and some NFLX (133.62 position, took half off). Afterhours NFLX, as noted, is paying off. Sure we sold some of one of the positions (had already taken some gain on the older position), but that was a calculated move and it will still pay off handsomely.

Thursday you start looking for something to possibly happen. The market likes to start leaning into an event. Of course into the election it was not leaning but falling over. Man, still wish it would have opened 700 points, even 500 points, lower. Alas. In any event, we will see if BABA and others, e.g. GOOG, some chips can start new moves. Thursday metals were already starting moves and we will look at some of them to potentially ride higher if the 'Trump is going to get it done' rally starts anew after this 6-week indecision consolidation.

Have a great evening!

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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Market Alert - Pre-Market

Futures vs FV: SP +3.81; DJ +24.77; NADSAQ +8.75

Up but off the morning highs as the bell approaches. Stocks are recovering from the Tuesday sogginess and the rebound is in line with the range-bound indices. Thus far nothing is breaking them higher, even blowout GS earnings. Even those earnings are not helping GS, a sign the financial sector is just tired right now.

CPI: Biggest year/year move since 2010
Overall: 0.3 vs 0.3 vs 0.2. 2.1%.
Core: 0.2 vs 0.2 vs 0.2 prior. 2.2% year/year, 14th month over 2.0%
Rents: +4.0% year/year; Shelter overall +3.6% year/year. Largest component increase.

Industrial Production, Dec: 0.8% vs 0.6% vs -0.7% (from -0.4%). best gain since 11/2014

Capacity: 75.5 vs 75.4 vs 74.9 (from 75.0)

Earnings beats: GS; CAL

Misses: C (TL)

Warnings: TGT slashes guidance, cites weak Q4 and weak 2017

Jobs: LOW cutting 2400 full-time jobs, pretty much evening out the jobs Trump takes credit for.

Biden farewell speech echoes (according to CNBC) China's Premier's statements re globalization and the world order. Oh THAT is good company, talking the same as a communist.


OTHER MARKETS
Bonds: 2.369% vs 2.372%

EUR/USD: 1.0671 vs 1.07114

USD/JPY: 113.32 vs 112.774. Dollar rebounding

Oil: 51.29, -1.19. As dollar rebounds, oil falls. Also, US shale production is on the rise again . . .

Gold: 1213.30, +0.40

Okay, another higher open but also well within the range. Definitely a market of individual movers and we will see if BIDU can follow NTES, YNDX bouncing. Also still very interested in the drugs/biotech/healthcare area and will see if that can catch bids.

Watching others that are sluggish, e.g. oil and some of the big names. NFLX is after the close with earnings and the last ones were solid.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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Market Alert - Pre-Market

Futures vs FV: SP +3.81; dj 23.77

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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Tuesday, January 17, 2017

Market Alert - To the Close

We have waited as long as possible, but the stocks remains sluggish. Nothing major but you can get 'nothing major-ed' away as stocks slip. The indices are holding just fine. Some individual issues not. Others, e.g. NTES, are working just fine.

Looking at HMY, IMGN as possible buys. Looking at closing GS, maybe PETX.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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Traders Talk: Today's Trade is $MBLY [+Trade Video]

Today's Trade

Upside Play: MBLY (Mobileye--$42.18; +1.34; optionable): Self-driving solutions
http://biz.yahoo.com/p/m/mblyhtml
After Hours: $42.28
EARNINGS: 02/22/2017
STATUS: MBLY surged off a lower low from mid-December, moving on strong volume and higher MACD. As MBLY put in a lower low, MACD set a higher low, showing turning momentum. It rallied and broke through the 200 day SMA, tested it early last week, then broke higher once more, gapping Friday off the 200 day. Good break higher and test, now resuming the move. As MBLY continues higher we are ready to enter the play for a run near the September peak.
VIDEO: http://investmenthouse1.com/ihmedia/f/plays/mbly/mbly.mp4
Volume: 3.202M Avg Volume: 3.296M
BUY POINT: $42.38 Volume=4.9M Target=$48.58 Stop=$40.32
POSITION: MBLY MAR 17 2017 42.00 C - (55 delta) &/or Stock



The above excerpted from the Alert section of the Stock Split Report. Click here to learn about a 2 week trial and how to save $360 per  

Market Alert - Pre-Market

Futures vs FV: SP -5.31; DJ -34.73; NASDAQ -12.06

US futures are lower and indeed stocks are lower around the globe ostensibly due to statements from a trio of world leaders.

Trump: The dollar is too damn strong already, said Trump in criticizing the GOP tax plan that includes a Larry Kudlow-hated border tax. Said tax would supposedly increase the dollar's value by 15%. It is very discouraging to see Trump talk of the dollar as too strong. That is old Bush et al dogma that believes you can devalue your way to prosperity. The ONLY thing the average US citizen had going the past several years was a stronger dollar. The dollar was really strong in the 1980's and 1990's and we prospered. People from around the world want to invest in a country with a strong, stable currency. It is quite worrisome Trump takes this kind of attitude that benefits the large corporations, the ONLY winners in the Obama era, over those that make the backbone of the country.

Trump is also talking of a healthcare plan where everyone will get coverage and it will be 'beautiful.' Sure sounds like a single payer system, and having had two family members treated in two different countries with state run programs, 'beautiful' is nowhere remotely close to the appropriate adjective. In fact, to borrow a Clinton word, 'deplorable' is more appropriate.

China: Leader attends Davos (oh boy), spouts globalist pabulum, says a trade war benefits no one (and he left out, particularly China). A bunch of non-words.

UK: PM says that Brexit will be a full exit, but then also says both houses of parliament have to vote on it. Of course that begs the question that after the people were allowed to vote on it why does their legislature have to approve the people's vote? What this means is a less chance of Brexit.

With all of that, the dollar is lower, bonds are higher, gold is higher, oil is higher, stocks are lower.

M&A: NE buying CWEI. Our CWEI positions will scream higher. Can sell some, can keep some for conversion into NE shares that are showing opening a bit higher as well as the market likes it.
BBA buying the rest of Reynolds in tobacco.

Upgrades: NFLX to buy; DIS to buy

Earnings: MS, UNH both beat.


OTHER MARKETS:
Bonds: 2.318% VS 2.393%. Rallying on world leader comments.

EUR/USD: 1.0694 vs 1.0645

USD/JPY: 113.048 vs 114.473. Dollar is struggling post Trump comments re too strong dollar.

Oil: 53.24, +0.87

Gold: 1216.50, +20.30


Futures lower all morning, rallied back into the 8:00ET hour then have faded back some of that recovery. All in all, no wrecking ball to the market, but once again, after moving up near the top of the range stocks stumble ahead of a breakout. All, of course, but NASDAQ that has NFLX and friends to prop it up.

The market has shown buying off of weak opens or weak sessions. We will see if that comes again OR whether the post-election Trump rally is getting old -- with Trump's comments about the dollar, healthcare, etc., making it older.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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Friday, January 13, 2017

Market Alert - Pre-Market

SP500 +1.46; DJ30 +18.00; NASDAQ +5.37

Happy Friday 13! Futures holding very modest gains, moving higher toward the open, building on the recovery Thursday afternoon. Bank earnings were palatable though the only one that beat top and bottom line was JPM as it prints money in the back.

Earnings beats: JPM; INFY (TL in line)

Misses: BAC (TL); BLK (TL); WFC (TL, BL)


Retail Sales, Dec: 0.6 vs 0.7 exp vs 0.2 NOV (from 0.1)

Control GROUP: 0.2% vs 0.4% exp

Ex-auto, Ex-gas: 0.0 vs 0.4 expected. This is the key. Outside auto sales to end 2016 as dealerships dumped inventory and rising gasoline prices, consumer spending showed no increase. Autos expect weaker sales in 2017. Where is that optimism? Did it not translate into retail sales? Apparently not. The next key is whether it failed to translate into business spending.


PPI: 0.3% vs 0.3% exp vs 0.4% prior. Gasoline and heating, brokerage services rose. Everything else flat or lower (fruit lower).

Core: 0.2% vs 0.1% exp vs 0.4% Nov


Jobs: LOW cutting "less than 1%" of workforce to increase efficiency. Does it really mean productivity? That workweek seen in the Jobs Report continues to drop. Time to get more out of the workers I guess.


China: December exports -6.1% vs -3.3% exp vs +0.1% prior. Year/year numbers. This is a back page story when it used to be page 1.


Analysts: FB upgraded, NFLX upgrade.


OTHER MARKETS
Bonds: 2.373% vs 2.358%

EUR/USD: 1.0647 vs 1.0624

USD/JPY: 114.776 vs 114.57

Oil: 52.64, -0.37

Gold; 1193.90, -5.90

Futures are holding pretty decent gains to the open. It would appear the Thursday morning session sellers have left for the long weekend. Yes, Monday is a holiday. We will see what shows a good move but with the indices still in the range the session likely won't resolve anything. Heck, even if it shows breakouts I am not sure they hold.

BAC is interesting. It was down but is not up a bit. It is possible it could hold a good move. If so we might pick up some more positions on the stock and see if we want some options next week.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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