Market Alert - Pre-Market

Futures vs FV: SP +3.06; DJ +20.39; NASDAQ +11.37

Futures modestly higher, recovering from the post-market drop Wednesday. Irma has devastated St. Marten, Barbuda, Anguilla. Tragic stories of loss of life and property destruction. Richard Branson supposedly rides out the storm in his wine cellar on his private island Nekar. Prayers go for all of those impacted and those in the storm's path.

Life goes on elsewhere.

ECB: ECB leaves rates unchanged, QE in place until 12/17 and perhaps beyond. Draghi says have to take currency impacts on economy, growth in consideration with policy, yet the euro continues to surge.


NKorea: China goes against Russia, says more sanctions against NK are needed.


Non-farm Productivity, Q2: 1.5% vs 1.2% vs 0.9% prior

Unit Labor Costs: 0.2% vs 0.3% vs 0.6%


Jobless claims: 298K vs 239K exp vs 236K prior. Hurricane Harvey results in this number.


AMZN looking for a second US headquarters in the range of $5B.


OTHER MARKETS
Bonds: 2.082% vs 2.105%. Bonds continue to rally as all is well economically and everywhere -- we are told.

EUR/USD: 1.2045 vs 1.19258. ECB says QE to stay through 12/17 or longer, Draghi says have to take into account currency's impact on growth in EU, yet the euro continues to climb.

USD/JPY: 108.67 vs 109.132. Dollar dropping here as well. Apparently the belief is the US won't get anything done on taxes, ACA, etc. and thus continue to limp along. It will be a huge shock to currencies when tax reform is passed and the ACA is repealed along the lines of the Graham/Santorum/Freedom Caucus plan.

Oil: 48.82, -0.34

Gold: 1348.00, +9.00


Futures recovered from the WED afterhours drop, rising all morning, stalling at 6:00ET for 1.5 hours or so, now moving up again, putting in pre-market highs. Positive reaction to the action and stories.

To recap, NASDAQ and SOX are in good position to continue last week's rally after a couple of sessions of testing. We will see if they can make the moves again and if the small caps can reengage. There are a lot of biotechs and chips of the smaller variety that are primed in good positions to move again. When RUTX finishes its test, those could be nice entries for nice gains.





Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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