Market Alert - Pre-Market

Futures vs FV: SP +3.45; DJ +12.31; NASDAQ +26.44

NASDAQ is back 'in' as the FANG stocks, after testing and breaking support at the 200 day MA, are on the buy list. That is bouncing NASDAQ as some of the other recently leading indices and sectors take a pause. That is what you want to see: other groups coming back to play while the recent leaders take a breather to set up for the next leg.

Oil: Jumping 3% as once again hope for an OPEC production deal rises. Renewal of those areas that were beaten down? Goes along with the market mood and oil stocks look a bit stronger. RIG is one we were looking at Monday and it is up early. Might need to move in and grab it early though OPEC is a fickle mistress.

Retail Sales, Oct: 0.8% vs 0.6% ex vs 1.0 Sept (from 0.6%
Year/year: +4.3%, highest since 11-2014. Fed has no excuses.
Control group: 0.8% vs 0.4% exp versus 0.3% prior (from 0.1%

Gasoline stores: +2.2% yikes.
Food Services a main decliner.
Okay, gasoline prices higher means restaurant sales lower.

Department stores -7%, non-store retailers +13%. Online winning out.

Speaking of the Fed, Rosengren says a December hike is "highly likely." Well, one would hope so.

New York Empire PMI, Nov: 1.5 vs -0.5% exp vs -6.8 October.
Mostly up though Inventories and Employment is lower. The market run should help.

Earnings Beats: HD, AAP
Misses: ZOES

OTHER MARKETS
Bonds: 2.224% versus 2.24% 10 year

EUR/USD: 1.0734 VS 107.43

USD/JPY: 108.708 vs 108.362.

Oil: 44.63, +1.30. Nothing like new hope of an OPEC deal to jazz up oil prices after a decline.

Gold: 1222.50, +0.80

Futures are up for all indices but there is a shift this session back toward more tech with NASDAQ futures leading higher. The FANG were slaughtered and are rebounding. Recall last night we noted that NASDAQ 100 fell 3X NASDAQ overall as these stocks tumbled. Now they are getting their relief moves after some broke the 200 day (FB, GOOG), others tested it (AAPL).

Oil stocks look good to move higher and we will see if the semiconductors can put some movement behind their good patterns as metals are a bit softer today along with industrial machinery. Again, this looks to be more of a pause and a lineup change to give the leaders a rest versus a rollover, but the new lineup has some good patterns.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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