Market Alert - Pre-Market

Futures vs FV: SP 1.26; DJ 28.24; NASDAQ -1.23

Futures are not great but are rising to the open and we will see if, after 4 sessions of testing, stocks can rebound and resume the post-SOTU rally.


ADP: 298K vs 180K exp vs 261K prior (from 246K). That has everyone pumped about the Friday Jobs Report.

Goods producing jobs posted record gains. That is good news if it is true.


Fed Funds Futures: After that ADP and other reports, there is a 100% chance of a 25BP rate hike by the Fed this month.


China: Trade deficit negative when expected positive
-8.15B vs +25.75b expected

Exports: -1.3% yr/yr vs +12.3% exp vs 7.9% prior


CAT: NYT reports tax fraud allegations are swirling at the DOJ


Tepper on CNBC: Punch bowl is still full so you cannot short stocks. Okay, but it is also the trend is up and not broken and there are leaders in good shape despite the sentiment, etc. So, the trend is in place for most stocks.


Productivity Q4: 1.3% vs 1.5% exp vs 3.3% Q3. This is rather anemic, but it is old news right? Q4 is so passe.


OTHER MARKETS
Bonds: 2.567% vs 2.51%. Wow, surging yields.

EUR/USD: 1.0588

USD/JPY: 114.68

Oil: 52.36, -0.78

Gold: 1207.10, -9.00


Stocks are heading from low to high into the bell. That is an improvement over recent action, and as noted, it could lead to some bids coming back into the market and trying a resumption of that post-SOTU address rally.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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