Market Alert - Pre-Market

Futures vs FV: SP +2.25; DJ +31.04; NASDAQ -4.77

Futures started lower in the early hours but have steadily climbed to positive in the old low to high move. That bodes well for the open perhaps having more momentum than the futures indications suggest. After a Tuesday session that gapped higher but then faded form the highs, a return to bids to start Wednesday is a good indication for the upside.

China: Q3 GDP somehow meets expectations: 6.7% year/year. Gee, that wasn't centrally planned or anything.

Housing Starts, September: -9.0% versus +2.9% expected.
1.5 year low.
Single family +8.1%
Multi-family: -38%
That is actually a good mix of starts. You want to see single family take over from multi as a more healthy progression.

Earnings beats: MS, INTC, ISRG

Earnings misses: HAL (TL); YHOO (TL); SVU


OTHER MARKETS
Bonds: 1.768% vs 1.74%

EUR/USD: 1.0968 vs 1.0978. No change after a near term wild ride.

USD/JPY: 103.467 vs 103.809. Dollar gives back some gains.

Oil: 51.05, +0.76

Gold: 1271.70, +8.80


Well, everything must be okay because futures are up and trending higher into the bell, right? It would appear the market has somewhat calmed itself again near term and now tries to recover what it lost when the volatility returned 6 sessions back.

The indices still have not merged their trends, the NYSE indices are still in the September/October range following the break lower. SOX and NASDAQ are still holding their trends. All will try to add some more upside on the session but with this market and the renewed volatility, that is not a given.

Energy is stronger, financials look better again. APA comes to mind as it shows a higher open off of the gap to a doji Tuesday. We will see what other stocks present opportunity. IP, MMM likely bump the stop points so we will see if they sustain their moves of again backslide.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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