Market Alert - Pre-Market

Futures vs FV: SP -1.1; DJ -43.78; NASDAQ +0.98

FBI director Comey's overdue firing is sucking out all the oxygen in the room. Obama should have fired him and would have had cause as well. It is not a constitutional issue. The FBI is not established in the Constitution. The FBI director is the head of the domestic police force and that agency operates under the Executive branch. Its personnel serve at the executive's whim. Maybe there are valid questions as to WHY he was fired and what the next director should pursue, but as far as a so-called constitutional issue? Hogwash.

Nonetheless it impacts the market as the concern is now what about the tax and healthcare agendas? Those are the important aspects to the market and the view is everything is pushed back because now the multi-decade senators are all ruffled because the status quo is challenged. They have settle down again. You have to question the timing if nothing more than from a strategic standpoint in pushing the agenda forward. What I don't know about politics is obvious . . .

There is no other news, at least that is being covered.

Chinese data continues to slide as producer prices tumble. China markets were lower again.


Earnings Beats: NVDA; EA; CROX; WWW

Misses: TIME (TL, BL); YELP (TL); PCLN (TL); TRIP (BL, TL)


OTHER MARKETS:
Bonds: 2.376% versus 2.394% 10 year. Bonds rallying some on the FIB confusion

EUR/USD: 1.0875 vs 1.08843

USD/JPY: 113.852 vs 113.771

Oil: 46.54, +0.66. Oil up on a historic draw. Have you noticed how MASSIVELY far off the market the estimates are of late? The point: the experts have really no clue as to what is going on AND this calls into question the entire system of accounting for draws and builds. It has become another useless indicator.

Gold: 1223.80, +7.7. A bit of a bounce on the indecision around the FBI director being appropriately fired.


Futures are holding up well, trading near morning highs. It could very well be that the market shrugs this off as politics even if it does impact the tax proposals. After all healthcare was dead in the House and then quickly was not. The market has that in mind.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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