Futures vs FV: SP +9.83; DJ +111.29; NASDAQ +28.44
Dow is set to top 20K on the open as world markets rally 1+% on the Tuesday US market and executive moves. Oh yes, and earnings are playing their part as well. In reality, it is the 'I am doing what I said I was going to do' actions of President Trump that instills market confidence that there will be economically beneficial actions taken.
To that end, Trump issued an EO limiting immigration, initiating the Wall building. He also took action to eliminate federal agency use of social media. Clamping down on the messaging, and some people who have lived with cush government jobs will lose them for what they have been stating on social media.
Australia: Moody's affirms AAA credit rating.
Earnings beats: STX; BA; TXN; DSCA; ISRG; SYK; CREE
Misses: TXT (TL, BL); AA (BL); COF (TL, BL)
In-Line: UTX
OTHER MARKETS
Bonds: 2.495% vs 2.467%
EUR/USD: 1.0725 VS 1.0727
USD/JPY: 113.72 vs 113.85
Oil: 52.57, -0.61. Still struggling to hold the breakout over the 2016 highs.
Gold: 1201.10, -12.50
So, the Dow will hit 20K finally as the market, after 6 weeks of lateral movement has consolidated the post-election rally and is getting some comfort with the economic actions to be taken given the Dems have crossed the rubicon of infrastructure spending and are now playing on Trump's side of the court. That is the big signal for the market. The curmudgeon republicans still have to throw their roadblocks in the way and their response will be important, but for now the market senses, as with Reagan, that Trump will get his way on the economic policies, on the cabinet selections, and indeed on his Supreme Court picks. Trump's popularity is rising, the media is talking about voter fraud, and Trump is pushing his agenda through.
Stocks are going to gap higher; glad we have already been buying and others can push our positions upside. We will, however, still see if we can get entries on MRVL, MU and the like.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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