Futures vs FV: SP -0.25; DJ +15.49; NASDAQ +7.03
Futures are back and forth but weakening modestly toward the open after DJ30 topped the 20K level for the first time. Important psychological level and whether it holds or folds tells a lot about the market as does the action in the financial stocks. How will they break in their lateral moves? Chips broke higher, another very important group, and for now they are holding sway.
Wholesale Inventories, Dec: 1.0% vs 0.1% November.
Year/year: 2.6% with a 7.7% jump in autos. Of course autos were down in December but we will see if that is a trend or a blip.
Big boost to Q4 GDP as the post-election optimism resulted in inventory building. Was it lack of sales or building? It was building based on what we heard from the businesses we keep tabs on.
UK: Fastest growing economy in the G7 in 2016. So what are you going to do Parliament? Seems Brexit anticipation released economic activity. Do you want to go against the people's will and the economic improvement? It would not be unprecedented . . .
Trump: Threatens to cancel meeting with Mexico if it keeps talking about not paying for the wall, but Mexico is thinking one-dimensionally and in denial. There are MANY ways Mexico pays for the wall without actually writing a check.
EARNINGS
BEATS: CMCSA; DOW; EBAY (TL in line); LUV; NOC
MISSES: F (TL); QCOM (TL); BMY (BL); LVS (TL, BL); MAT (TL, BL); CAT (TL); BIIB (TL)
In Line: T; F (BL)
OTHER MARKETS
Bonds: 2.532% vs 2.52%
EUR/USD: 1.0701 vs 1.0757
USD/JPY: 114.21 vs 113.362
Oil: 53.37, +0.62
Gold: 1191.10, -9.40
Stocks weakening in to the open. Not bad after an important break higher. A flat to soft open allows buyers to reset and gives opportunities to get in at a bit lower price. We will see how the bids return after a sluggish open.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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