Market Alert - Pre-Market

Futures vs FV: SP +13.43; DJ +113.50; NASDAQ +27.71

Futures are up nicely as the Friday indecision post jobs is being resolved upside. Not a lot of news, just more of the same, but it is notable that what was a major market story that rattled markets (DB) has virtually no impact today.

Notably, DB failed to reach any kind of settlement with the US DOJ over the weekend attempts. That had European stocks trading lower, but then DB caught a bid, bunds sold, and European stocks turned positive. In doing so they joined Asia, US and the rest of the world with higher prices.

Oil: Putin says Russia can freeze (preferred course) or even cut production with or without OPEC reaching agreement. There goes Putin again, the expert at positioning on the global front, showing how in control Russia is, how magnanimous it is, in that it is willing to 'do the right thing' even if others are not. He is a master at it. Oil is, of course, higher.

Japan: Kuroda and Abe standing with continued stimulus. Kuroda is "expecting growth next year" even though Japan may delay expectations on hitting its inflation target until 2018. You have to love (or not) these central bank planners and their continued 'wait until next year' promises of growth. Might as well Be Chance the Gardener from 'Being There': 'there will be growth in the spring.'

M&A: CBS/VIAB said to be discussing merger.

Analysts: NFLX downgraded to sell, UTX downgraded to neutral.

TWTR: Still waiting for its Prince to come.

Rents: WSJ reports San Francisco, New York, San Jose are rolling over and "leading the market downturn." Rents have rolled in these cities, going negative. The problem is lots of new supply, up 76% in San Francisco from 2015 to 2016. After leading the housing market since the financial crisis, they finally hit saturation of supply. Always the case: everyone wants in on it, they build like crazy, overshoot.


OTHER MARKETS
Bonds: Market closed for Columbus Day

EUR/USD: 1.1156 VS 1.1183

USD/JPY: 103.39 vs 103.98

Oil: 56.26, +0.72. Putin says can freeze or cut production with or without OPEC agreement.

Gold: 1262.80, +10.90


Futures are holding nice gains into the open. NASDAQ, SOX are trying to lead the other indices out of their trend breaks, trying to merge upside. The open will be strong and we will see what kind of entries we can get.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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