Futures vs FV: SP +7.05; DJ +68.29; NASDAQ +37.30
Healthcare: CBO scoring comes out this afternoon. Over the weekend, several republicans (more than the original 4) voiced concerns of one feature or another. Let's face it: all are nervous about removing an entitlement even if it is an absurdly costly one that cannot be paid for and only produces more costs for those not benefitting from the entitlement. Oh, and the 'throw granny off the cliff' video has reappeared. One side must be worried a bill will pass in order to revert to that one.
Economic data remains poor. And the Fed seems to be fine with that:
Durables, May: -1.1% vs -0.6% exp vs -0.9% prior (from -0.7%.
Durables are still 5% lower than the 2007 peak even with stocks 55% over the 2077 peak (via SP500).
Ex-Transports: +0.1%. Better.
Non-defense ex-aircraft: -0.2%. This is business investment and it is still lousy.
Fed's Dudley: Today he says that weak economic data as is the case now gives impetus to continue the removal of accommodation. In other words, it is okay to continue tightening even if the economic data is lower, meaning he wants lower stock prices. This is scary: in 2000, Greenspan wanted lower stock prices and a slower economy and look what it got us--the collapse of techs.
Downgrades: SSYS (sell); GRUB (to equal weight)
Trump: Tweets Obama did nothing first, then changes it to Obama, because he expected Clinton to win, colluded or obstructed relating to Russian election interference.
Unilever: Threatens pulling big ad campaigns from Google, FB unless it can get accurate numbers on views, etc.
Supreme Court: Set to rule on travel ban. Also, will Justice Kennedy announce his retirement in this last week before its recess?
OTHER MARKETS
Bonds: 2.137% vs 2.14% 10 year. Bonds continue rallying
EUR/USD: 1.1212
USD/JPY: 111.41
Oil: 43.33, +0.32. Rebounding into the range after a more modest 2-day bounce last week. Still not much of a move higher
Gold: 1244.30, -12.10. Gold flash-crashed earlier, dropping $12 in a minute. It was blamed on a fat finger, but it has not recovered. So, how fat a finger was that?
Futures rallied with an opening gap, have added to those gains toward the bell. Last Monday saw a big price gap and rally though internals lagged. Spent most of the rest of the week testing with some upside Friday. Starting the same way this week. Hopefully the move will be more than one day this week, but even so, it is driving stocks 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
No comments:
Post a Comment