Market Alert - Pre-Market

Futures vs FV: SP +8.50; DJ +152.11; NASDAQ +20.17

Elections and now Earnings or taxes? CAT and other Dow components beat top and bottom line and are jumping, adding to the pre-market that was already higher before the earnings hit.

Why was it already higher? Perhaps the 15% corporate tax rate proposed by the President. Supposedly this is 'doable' near term but at the same time many stories discuss that Paul Ryan won't agree with this. Who is Paul Ryan other than a cheese packer from Wisconsin? I love Wisconsin, but 49 other states did not vote for him as a House Rep (and many didn't vote for him as Vice President either).

The market, however, appears to believe that Ryan or no, that deal is doable, particularly given Trump said he would wait on the funding for the border wall, thus apparently avoiding a potential government shutdown. Wall in September he says.

Earnings beats: CAT, DD; MMM; BIIB; LLY

Misses: KO (BL); HHG (TL, BL); EXRS (TL); AA (TL); WHR (BL); NVS (TL)


Dampers? Trump proposes 20% tariff on Canadian softwood lumber due to what Canada is doing to border dairies (including Wisconsin). Does not seem to have too many deleterious effects this morning, but we will stay tuned.


OTHER MARKETS
Bonds: 2.302% vs 2.275%

EUR/USD: 1.0800 vs 1.0868

USD/JPY: 110.645 vs 109.705

Oil: 49.05, -0.18

Gold: 1269.40, -8.10


Oil, gold lower, stocks higher. We will still look at stocks in good patterns as the market adjusts higher with no price discovery as no one knows what prices really are, they are just buying because things are not crashing. We will try to get in on the good patterns.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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