Market Alert - Pre-Market

Futures vs FV: SP +5.17; DJ +41.99; NASDAQ +23.61

After a day off stocks are in rally mode again with futures building all morning into a stronger and stronger open. AMZN is up. NVDA is up. Banks are still struggling still as earnings miss but the reports are not bad.

There is actual news.

Healthcare: Trump ends subsidies to insurance companies, the bribes made to keep them in markets where they would not be but for the subsidies. Thus they are not 'markets' but government created money pits. Headlines such as CNBC and Bloomberg call this a 'bombshell,' but as I said when the first healthcare attempt failed miserably, the thing that would change the landscape in a HURRY would be if the subsidies were immediately canceled. Here we are, 8 months down the road and just now it is done.


CPI: 0.5% vs 0.6% exp vs 0.4% prior. 2.2% year/year

CORE: 0.1% vs 0.2% exp vs 0.2% August. 1.7% core. Less than 2% now for 6 months.


Real Wages: -0.1% in September, now down 2 months straight. Gee, things are great.


Retail sales, advanced read: 1.6% vs 1.7% expected. 2.5 year high as sales snap back thanks to surging gasoline prices (highest in 4 years) and auto prices (after the inventory was washed away in Harvey).

REMEMBER: Sales are measured in prices. Thus, higher prices is recorded as more sales. That is another bogus measuring metric as tragedy means more 'sales' simply because supply is limited and prices rise.


Here is a question I saw posted today: Are you better off than you were 17 years ago (2000)? think about it.


OTHER MARKETS
Bonds: 2.287% vs 2.321%. Bonds surge on CPI, Retail misses.

EUR/USD: 1.1861 vs 1.1834

USD/JPY: 111.82 vs 112.25. Dollar sliding hard vs yen

Oil: 51.59, +0.99. Nothing like a weaker dollar to boost oil. Also, oil technically looks as if it will breakout this time. It did fail at resistance but held a key support level in the upper half of the range and is rebounding. That typically spells breakout regardless what the bald guy says.

Gold: 1302.90, +6.40


Stocks set to gap higher, throwing the rest of the week out the window and looking for again new highs. Friday gaps higher; yuck for entries. Will still look at AMZN, LITE and the like and see if they entries are decent.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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