Market Alert - Pre-Market

Futures vs FV: SP +9.97; DJ +162.83; NASDAQ -11.02

Today is about earnings and the are driving up many stocks while others are notably lower, e.g. GOOG, STX.

DJ30 is finally getting some help from some of its components as CAT, UTX, MCD help power it higher after IBM, GS have acted as drags. Not to open at a new high, but working on it.

SP500 will open with a new high, also riding many of those same DJ30 stocks as well as others that are bouncing nicely.

NASDAQ opens lower on GOOG, STX and chip declines related to STX and its issues.


Earnings Beats: CAT; UTX; DD; LLY; GOOG; MCD

Misses: MMM (TL, BL); GM (TL); PHM (TL); STX (TL, BL)


Thus, stocks are set to surge at the open for the most part, even as the top CNBC headline is "Wall Street Bracing for a Significant Correction." It will come, but apparently not at today's open.


M&A: KORS to buy Jimmy Choo for $1.2B. Thar's gold in them thar shoes. Of course they are made like cr*p.


Healthcare: McCain is back in town for a healthcare vote. Not sure what vote, but he is there. Will he be able to corral enough 'fight spirit,' enough sympathy votes to get the Senate to actually vote?


OTHER MARKETS
Bonds: 2.301% vs 2.255%. Bonds selling more aggressively off that small island reversal.

EUR/USD: 1.1688 vs 1.1637. Dollar resumes the slide.

USD/JPY: 111.51

Oil: 47.11, +0.77

Gold: 1252.20, -2.1


SPY futures continue racing into the open, hitting higher highs as the bell approaches. A very modest pause off the prior new highs and now the indices are opening with more upside.

We will see what kind of entries we get. Several positions played around with entry points Monday and they are going to be higher today, e.g. JD with a WMT deal.





Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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