Market Alert - Pre-Market

Futures vs FV: SP +5.72; DJ +53.16; NASDAQ +11.44

More rally demise predictions. Mark Grant, one of the many that suggested people should buy stocks post-election, says the 'big equity run' post-election is over. Keep the negative calls coming!

Political news: Quiet this morning with the focus on the Trump trip to Saudi Arabia, Israel, etc. Defense stocks are rallying on arms deals with Saudi Arabia. Supposedly SArabia will make great strides with women's rights. Sure it will. And there will be peace in the Mideast this year. Hey, you have to hope, but every new President since forever has said they felt they had a shot at bringing peace to the region. When will they learn it is all a ruse by the powers that be there to extract deals with a new President, then go back to the same old, same old?


M&A: Huntsman to merge with Clariant (European). Chemicals businesses e.g. plastic colorants, etc.


AAPL: RBC says AAPL could be $1T market cap in 18 months or something like that. Gee, that is shocking.


Infrastructure: Saudi Arabia sovereign fund and Blackstone announced this weekend a $40B infrastructure fund for projects mostly in the US.


Budget: Administration floats a 25% cut in food stamps, $1.7T cut in entitlements to see how much screaming there is.


OTHER MARKETS
Bonds: 2.247% vs 2.233% 10 year. Bonds off, yields up as should be the case if all is well.

EUR/USD: 1.1243 VS 1.12077. Euro rallying versus dollar as Merkel says euro is too damn weak.

USD/JPY: 111.293 vs 111.271

Oil: 50.44, +0.11

Gold: 1257.30, +3.7


Futures are on a steady rise into the open, showing nice bids as the indices continue their attempt to shake off the Wednesday selloff. Thursday and Friday were up but not hugely convincing, but there are still good stocks out there in good position to move AND some 'new' sectors trying to break higher, e.g. oil, chemicals.

Still has to prove it can hold the moves, but as has been the case many times in this rally, the indices have overcome selling shocks and posted new highs.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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