Market Alert - Pre-Market

Futures vs FV: SP +4.73; DJ +54.17; NADSAQ +14.60

UK terror attack that had futures solidly lower last night is not standing up to the better EU PMI readings and the market's continued upside resilience.


EU PMI: 57.0 vs 56.5 exp vs 56.7 prior

Germany PMI: 59.4 vs 58.0 vs 58.2. Sentiment hitting record highs for business.


Trump Budget: Big slashes in spending ($3.6T) as we try to turn some away from entitlement society to productive society. Basically if you are able bodied you should be working, not opting to take benefits and not work. And like it or not, admit it or not, we pay people not to work. Period.

Also proposes selling half of SPRO (strategic oil reserve). May make sense given oil supplies right now.

Of course the budget is being savaged, saying it will stifle growth as government spending is cut. No, no, no. This country is still killing more businesses than creating. This country needs to throw off the shackles that are killing our small and new business creation and allow people to create, innovate, earn, keep their money, grow wealth. That is what the Reagan tax cuts did in an era that saw the same kind of taxation and regulation. Why would we automatically make goods 35% more expensive via the corporate tax? Get rid of it completely, have prices fall, have that money stay with consumers to invest, spend, create. History shows this works, but we have economic history deniers.

But, I digress.

OTHER MARKETS
Bonds: 2.245% vs 2.254%

Euro/USD: 1.1231 vs 1.12390. Dollar rebounds some

USD/JPY: 111.237 vs 111.076. Dollar rebounds some here as well.

Oil: 51.19, +0.06. Up even as Trump proposes selling 1/2 of SPRO.

Gold: 1261.80, +0.40


Futurs jumped as the opened trade and have held that move since. the indices are going to test the pre-Wednesday highs, at least NASDAQ, SOX, SP500. Okay, the litmus test will be underway soon.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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