Market Alert - Pre-Market

Futures vs FV: SP +6.96; DJ +68.58; NASDAQ +23.35

Futures are up again to push SP500 to a higher high and perhaps NASDAQ and SOX as well. Throw in DJ30? We will see how the early move upside holds. Futures are in a morning range, opening higher and remaining higher all morning.

Sometimes that kind of pre-market action gives sellers something to shoot at. The negative calls are still there, but this morning on the financial stations there is talk of a continued 'melt higher,' or 'if SP500 gets through 24-something then it runs to 2600.' To top it off, Dennis Gartman just went bullish on tech. Okay, sell all tech. Kidding. For now. I liked it when everyone was negative; the market recovered from its big 1-day selloff.

Now the indices have a chance to push to higher highs in a slow but straight line recovery from the prior Wednesday selloff.


Oil: OPEC extends the cut to 9 months but the market is kind of 'so what?' as it sells back some of the recent gains in anticipation of the news.


CBO scored the House H/C bill and it will save $119B the CBO guesses, and 24M people would 'lose' insurance. But, given that it would no longer require young people to buy insurance and that many that moved to medicare due to the ACA will now go to the states through block grants, that figure is bogus. Also, when you consider that many, many people who 'have' insurance under the ACA cannot use it because of incredibly high premiums and deductibles drain their funds, 'losing' that insurance is not that big of a deal. The MAIN ISSUE is, what is the market going to be able to provide now that the ACA has decimated the healthcare insurance industry? KEY question.


Intl Trade Balance, April: -67.86B vs -65.1B prior (from -64.8B)
Highest since January's -68.6B


Wholesale Inventories, April: -0.3% vs +0.2% exp vs +0.1% March (from 0.2%)

This does not bode that well for the start of Q2 GDP.


Earnings beats: SAFM (chicken); BBY (blowout again. electronics--so much for using BBY as AMZN's showroom); MDT; HPQ; WSM; PVH; NTAP

Misses: DLTR (BL); HRL (BL, TL)


OTHER MARKETS
Bonds: 2.250% vs 2.252% 10 year

EUR/USD: 1.1208 VS 1.1210

USD/JPY: 111.863 vs 111.562

Oil: 50.74, -0.62. OPEC 9 month cut extension not wowing the market.

Gold: 1256.00, +1.50


Futures are holding near the morning range highs. A melt higher to new highs by the indices? We will see. The indices have found the prior highs and are trying to make them the old highs. Watching to see if the move broadens out today. Would be nice to see energy, despite OPEC, break higher.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
______________________________________
Alert Key
http://www.investmenthouse.com/alertkey.htm

PLEASE DO NOT REPLY TO THIS EMAIL. USE THE CONTACT US PAGE ON OUR WEBSITE.

Customer Support: http://investmenthouse.com/contact_us.php