Market Alert - Pre-Market

Futures vs FV: SP +9.48; DJ +76.84; NASDAQ +8.22

A dearth of news as the Fed starts its 2-day rate decision meeting. Futures, on the other hand, are up and at session highs as they anticipate no Fed action Wednesday.

Indeed, the WSJ's Hilsenrath, a reputed mouthpiece of the FOMC, has called a December hike with the Fed passing in September. Really going out on a limb there, taking the 91% probability side of the bet. But, he has history behind him as well. History of Yellen, that is.

Housing Starts, August: -5.8%
Permits: -0.4%
Don't worry. Homebuilder sentiment jumped higher recently so all must be well. Perhaps for the next 10 years as they all said back in 2005 -- right at the housing market peak.

M&A: TSRA buying DTSI


OTHER MARKETS
Bonds: 1.689% versus 1.70% 10 year

EUR/USD: 1.1178 VS 1.1177. Flat ahead of fed

USD/JPY: 101.85 vs 101.854. Flat ahead of Fed.

Oil: 42.83, -0.47

Gold: 1317.30, -0.50


Okay futures are holding their gains -- even with oil lower by the way (where are those oil down/market down folks today?) -- as the market apparently views a Fed pass as a market positive. So, we plod along and wait out the Fed. Keep in mind that Monday the early market upside did not hold. Today looks a bit stronger, but we will see.

Biotech still looks interesting in its turn off of the lows and bases that have formed. Financials should be a bit weak if the Fed is going to pass; they have held near support and are showing a higher open. Doesn't make a lot of sense, does it. It would appear this is a general 'buy most everything ahead of FOMC rate hike pass' kind of morning. Again, we see how it holds.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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