Market Alert - Pre-Market

Futures vs FV: SP -1.15; DJ -24.30; NASDAQ -5.81

Futuresa were modestly positive up to a half hour ago but they have turned negative in a fairly sharp drop. No one is reporting any major stories but perhaps it is related to a statement by dome obscure Freedom Caucus member. Interestingly, Rick Santelli on CNBC argued today that this was just sausage making, that a bill would pass. See, I am not the only one who remembers this. Reagan, Bush, Clinton, Obama -- all had to go through hoops of one form or another to get their legislation passed.

There is a negative story about Ford. It cuts its guidance as it notes "auto sales have reached a plateau." Some would argue that they are rolling over hard. Auto loans have really slumped, and used vehicle prices are described as 'crashing.' Years of buying autos now has needs mostly filled.

Jobless claims: 258K vs 239K vs 243K (from 241K). What if you gave a report and nobody cared? This is it. I note the claims jumped at the highest rate in 10 months, but at these levels and given the condition of the jobs market and the causes, this statistic means nothing.

Yellen gives a speech this morning but it is not about policy, but about how poor kids have a harder time succeeding as an adult. What? I guess this is a recognition of just how the US has changed from the land of opportunity to a land of what entitlements you get.

Earnings beats: ACN, CAG, PVH, CTAS

Misses: FIVE (TL); HRMN (TL)


OTHER MARKETS
Bonds: 2.40% vs 2.40% 10 year

EUR/USD: 1.0786 VS 1.0792

USD/JPY: 110.847 vs 111.29. Dollar really falling against yet.

Oil: 47.94, -0.10

Gold: 1254.60, +1.80


Well it looked as if there would be a continuation of the Wednesday modest recovery, but something rattled the markets over the past half hour or so. Perhaps it is the line of those against the healthcare bill waiting to get in front of the camera on the various news stations.

With this return to some mush at the open we will still be looking at how the leaders hold their support and see if there is a return to a bit of upside we can use as the morning progresses. The vote will not be until tonight after the markets close so there is plenty of time for the push/pull in the equity indices.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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