Market Alert - Pre-Market

Futures vs FV: SP +4.04; DJ +54.95; NASDAQ +9.28

Futures are moving higher toward the bell as the new expiration starts off to the upside as the stock indices attempt to wipe off any notion that they are about to top this last rally.

Retail is providing the impetus this morning. It was thought all retail outside Amazon died last Christmas. A rebound in home spending, turns out, has kept the other retailers alive.

HD never really died; its earnings are and have been solid. It beat again.

WMT posted its best sales growth in 4 years. All is well though it still missed on its sales expectations. So the market buys the stock.

M missed on its top line as well with a 4% year/year decline. But, it is up as well.

What does this tell you? This is a market that is still in a very forgiving mood, i.e. trying to find silver linings in all clouds so they can put more money to work. That is pretty much the definition of an upward bias in the market. Market is certainly starting that way on this shortened week.

Oil: Citi says crude can hit $70/bbl by year end. Oil is up nicely on the day as OPEC says its production cuts are working.

EU PMI: 55.5 vs 55.2 prior. Jobs creation the best since 4/11. Yes, Brexit is bringing carnage to Europe. An improving economy helps everyone, it is just that some countries want to be in control of their economies. Live with it.


OTHER MARKETS
Bonds: 2.452% vs 2.42%

EUR/USD: 1.0538 VS 1.0613. Dollar moving again against euro.

USD/JPY: 113.87 vs 112.836. Dollar moving higher here as well.

Oil: 54.60, +1.20

Gold: 1229.50, -9.60


Stocks clearly shaking off any lethargy they may have felt as new money hits the market early. Staying power is always the key as the past two weeks have seen a lot of early moves not reversed, but given back intraday. Even so, the market has continued its climb as there are, as noted last week, no sellers daring to sell the market overall. They are hitting some sectors and we will see how they fare; we have a few downside positions on some stocks in those areas that broke trends/patterns. Most of the market is, however, holding their support/trend.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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