Market Alert - Pre-Market

Futures vs FV: SP +0.30; DJ -10.94; NASDAQ +2.88

The French election went off with Marcon posting 65% of the vote though it is interesting that 1/3 of the French either turned in a spoiled ballot or turned in a ballot where they did not vote. I guess they felt like US voters and their choices last fall, but put in a protest vote instead.

In any event, futures are lower when the markets supposedly got what they wanted. Or, perhaps not: maybe they wanted Le Pen so there might be a selloff a la post-Trump and a buying opportunity. Ironically, futures are down a bit, or at least were, though no doubt not nearly as low as the traders wanted in order to buy heavy on the dip.

That said, today may be a lot like Friday where there was a build into the session with momentum picking up in the afternoon. Still, that is not the big drop and then pop we heard some talking about.


M&A: COH buying Kate Spade. SBGI buying TRCO. KKR wants to buy Toshiba's chip unit.


China: Import/Export data disappoints.
Imports: 11.9% yr/yr vs 18% exp vs 20.3% March
Exports: 8.0 vs 11.3 exp vs 16.4% March

And we hear everything is just going gangbusters in China. Hmm.


Analysts: MU downgraded to neutral.


CNBC spent all morning with an interview of Buffett, Munger, and Gates. I used to find it amazing that Bill Gates now pushes for policies that would have prevented him from gaining his wealth, but I also realized early on that many people who amass wealth then shift to doing whatever it takes to hold onto the wealth and keep the power that gives them. Think about that with many, many, many public figures you see. Republicans, democrats, those in government.


OTHER MARKETS
Bonds: 2.358% vs 2.35%. Not a lot of change post-France.

EUR/USD: 1.0984 vs 1.0999. A bit stronger euro

USD/JPH: 112.683 vs 112.683

Oil: 46.04, -0.18

Gold: 1231.20, +4.30


Futures continue improving toward the open. A sluggish start in a market that is otherwise in good shape is not a bad thing. Again, as with Friday, a slow build can turn out well. It was not bad for SP500 as it put in a new high.

Now we see if the bounces Friday can continue and lead to the next leg 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