Market Alert - Pre-Market

Futures vs FV: SP -2.89; DJ -14.6; NASDAQ -4.23

Futures are cautious as anticipated follow the big surge higher Monday. That move was a relief move with a lot of pent up election anxiety released. As noted last night, there is still an election to take place and the market, after releasing a lot of worry now has to sit through another day.

Sit through might be an appropriate description. There is virtually no economic news coverage this morning as all financial stations are covering the presidential election as well as ballot initiatives such as legalizing more marijuana. That somewhat tells you where the market's mind is.

Earnings beats: W, PCLN (but lower guidance), ENDP, MOMO

Earnings misses: HTZ and lowered guidance; VRX (TL, BL); CVS and lower guidance; DHI (BL); MAR (TL)

This earnings season has seen a change: more of a mix in misses. It has been primarily top line misses, LOTS of top line misses. Now we are seeing a mix of top line and bottom line. Still running analysis on just what this means.

China: Exports year/year -7.3% vs -6.0% exp vs -10.0% prior.
Imports: -1.4% vs -1.0% exp vs -1.9% prior


OTHER MARKETS
Bonds: 1.828% vs 1.83%. Hit 1.81% but sold back to flat

EUR/USD: 1.1044 VS 1.1032.

USD/JPY: 104.745 vs 104.437. Dollar slightly higher

Oil: 44.61, -0.28. Iran and Saudi Arabia are still at loggerheads over an OPEC deal. Interesting how it all boils down to the same old adversaries every time there is a 'deal.'

Gold: 1281.40, +2.00


Futures are still tentative and it would not be surprising to see the entire session hit the pause button somewhat. We will be watching how some of those stocks that rallied to resistance to see how they perform, but if the market is on a pause, they likely do the same.

Of course that leaves Wednesday as the rubber match. We don't anticipate making any big changes in position ahead of the close and those results. If we do have a change of view we will let you know, but it would need to be something material. Otherwise we do some position maintenance, see if there is any play we really want to enter before Wednesday (e.g. MU, MLNX), and as with everyone else, await the outcome.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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