Market Alert - Pre-Market

Futures vs FV: SP +4.79; DJ +19.91; NADSAQ +21.01

Futures moving higher all pre-market toward a higher US open. Not a lot of news contributing toward the rise, just a steady move higher since opening.

M&A: CTL buying LVLT. GE and BHI combining oil and gas businesses. BSX buying TMH.

Personal Income, Sept: 0.3% vs 0.4% exp vs 0.2% prior. 3.2% year/year

Real wages down 2 months straight

Spending, Sept: 0.5% vs 0.5 exp vs -0.1% (from 0.0). 3.7% year/year

Real spending 0.3%


EU Q3 GDP: 0.3% as expected. 1.6% year/year

EU CPI: 0.5% as expected. Core CPI 0.8% as expected


Oil: OPEC unable to reach agreement on the 'how' part of the deal, i.e. how it will achieve the production decrease. Meeting broke up with the members saying they would meet again in November.


OTHER MARKETS
Bonds: 1.833% vs 1.85%

EUR/USD: 1.0950 vs 1.0984

USD/JPY: 105.034 vs 104.785. Dollar takes off upside again versus yen.

Oil: 48.14, -0.56. OPEC unable to reach production deal particulars, will talk again in November.

Gold: 1274.20, -2.60


Futures are holding gains toward the open as the events ending last week are either believed to be not that impactful or things are still so much in flux that this is just more of the same.

The stories are important, but the reaction is the most important. Last week saw RUTX and SP400 fall out of the September/October range. NASDAQ gapped below its trendline but modestly and showed a doji; it is going to get back over it on the open. SP500 is trying to hang on. That leaves DJ30 and SOX.

The indices are going to give a shot at recovering what was lost late week and that is the key to the market near term. The last full week before the election and who knows what is next on that front and the market is trying to hang on. Then the landscape changes again after the election regardless of the outcome. So, going to be looking for the good patterns making moves we can benefit from in the shorter term.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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