Market Alert - Pre-Market

Futures vs FV: SP 2.12, DJ 26.70, NADASQ 5.74

Futures started lower but have recovered to modest gains and are heading higher toward the open. DB is rebounding as, wait for it, Germany prepares a bailout package (called a loan package). There you go: have compliant central banks, have a government ready to bail out poorly managed, yea verily corrupt, businesses, and you have stock rallies.

Good thing because the economic data continues to limp along.

Durable Goods, August: 0.0% vs -1.9% exp vs 3.6% prior (from 4.4%)
Core (ex transports): -0.4% vs -0.4% exp vs 1.1% prior (from 1.5%)
20 months of contracting core durable goods.
Down: computers (-5.8%), Machinery, Fabricated products, communications equip, electrical equipment, non-defense aircraft.
UP: Defense spending, +23.6%
An economy that relies on gains due to government spending is typically called socialist or communist. History shows how great those countries and economies have performed.

I think the many economic reports with yearly declines now going on 2 years is the definition of malaise. And, not surprisingly, the last time we had this kind of economy was when we last had this kind of regulation, taxation, etc.

Fed: Yellen speaks to Congress today, the first of two days. Bullard, Kashkari, Evans, Mester, and George also speak today.

Earnings: NKE misses, TPX (mattresses) warns.


OTHER MARKETS
Bonds: 1.563% vs 1.56%

EUR/USD: 1.1226 VS 1.1215

USD/JPY: 100.62 vs 100.426

Oil: 45.13, +0.46

Gold: 1327.00, +3.40


Stocks are steadfastly trying to hold positive given the latest indication governments will bail out all businesses, e.g. Germany and DB. Okay, we will continue looking at good upside patterns, but also note that money is driving AMZN and the like higher and are concerned that the shrinking breadth is not a steady driver for the upside.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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