Market Alert - Pre-Market

Futures vs FV: SP +4.51; DJ +64.91; NASDAQ 13.77

Lots of talk about retail earnings beating and rallying. They were so low and expectations were so beaten down it did not take much. Many did not lose as much as expected and they are treated as if they actually were massively profitable. Good show! Oversold, started to improve the past few weeks, now the news is coming out: things were not as atrocious as believed. Atrocious yes, just not as bad.


Republican feud continues as Trump tweets against Ryan and McConnell for putting the VA bill up for a vote without tying it to the debt ceiling, saying that gave the democrats hand. DC is so corrupt who knows why Ryan and McConnell decided to offer a clean bill for a change; surely there is a motive because everything they do has a motive: how can you stay in that slimy place for years on end and like it if you are not on the take? Bad place.

But, of course, I digress: the takeaway is that tax reform takes another step back, but the market is still higher pre-market.

Indeed, Axios quotes a 'top republican source' that the chance of a government shutdown is now 75%.


Fed: George says she wants rate hikes even with low inflation. Well, we will have to see what Yellen says or does not say in Jackson Hole that starts today.


Earnings beats: TIF; ANF; SIG; WSM; PVH; GES

Misses: HRL (TL, BL); SJM (TL, BL). What? Are people no longer putting jam on their spam?


OTHER MARKETS
Bonds: 2.187% vs 2.178%. A bit lower, yields higher, as Fed's George says still wants rate hikes despite low inflation.

EUR/USD: 1.1797

USD/JPY: 109.39

Oil: 48.22, -0.19

Gold: 1291.50, -3.20


Futures are a bit off their morning highs, struggling a bit toward the bell. Bids are trying to return and of course holding the bids is key for that Tuesday break back upside. This market is rather volatile intraday, so we will see what it can do with a stronger open.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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