Market Alert - Pre-Market

Futures vs FV: SP +5.02; DJ +96.57; NADAQ +19.90

Futures have rallied all pre-market session, now trading just off the session highs hit 15 minutes back. Earnings remain a good enough catalyst ahead of the FOMC rate decision this afternoon. Thus, the rally continues, and it looks to pick up the Dow more and NASDAQ will be back in the mix as well. Small and midcaps, the Tuesday leaders? We will see. If there was rotation to those areas beginning, it either ends today or everything rises in a 'happy days are here again' kind of euphoria.

Doesn't matter that the Senate republicans cannot bring themselves to do what they were elected to do. The Senate just voted down (57-43) a repeal and replace vote that would use the currently proposed bill as a replacement. That was going to happen because there were no changes. Now, thee will be attempts to amend. I have no more comment. If we as a people want our government to control healthcare, then we have to be ready to bear the results. Us in our twilight years and our progeny forever.


Mortgages: 0.4% vs 6.3% prior week. All refinancing as new home mortgages fell on the week.


M&A: OTEX buying GUID


Earnings Beats/Up guidance: AMD; X; EXAS; BA; SLAB; T; CMG; STM; LUV

Misses/Guidance lower: AKAM; WYNN; AMGN; IR; JNPR; F

Lots of talk about the beats, but there are some SERIOUS names that reported weak results. Again, all is well because a few big names are doing well. Yeah, right.


FOMC decision is on tap for this afternoon. Some hint at the possibility of a surprise move now versus September, some walk back of the Yellen testimony, but the market is not pricing that in and the reality of this Fed acting in that manner appears remote.


OTHER MARKETS
Bonds: 2.347% vs 2.330%. Bonds continue to tail off after that Tuesday slam lower.

EUR/USD: 1.1639 vs 1.1646

USD/JPY: 111.78 versus 111.897

Oil: 48.38, +0.49. Oil keeps driving higher in its range

Gold: 1247.10, -5.00. Continues struggling near term after a nice bounce up in its range.


Futures backtracking just a bit heading toward the open, but again the market is set to move higher, and those lagging Tuesday look to lead out of the gate. Watching small and midcaps, biotech, China. Small and midcaps to see if they still rally decently. Biotech and China because they struggled a bit Tuesday and could indicate some rotation.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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