Market Alert - Pre-Market

Futures vs FV: SP +8.3; DJ30 +100.96; NASDAQ +23.13

The Senate actually passed something related to getting something done and the markets react favorably, or at least as you would expect if something actually got done. Nothing is really done re taxes, but after the standstill that was in place, this seems like a big victory. There is still a huge wall to climb.

Earnings beats: HON (TL); STI; PYPL; ISRG; NCR; SKX

Misses: GE; ATHN (TL)

The GE miss is the last of Jeff Immelt's tenure as CEO. It was an abysmal time for the company as I have chronicled many times. Others have said so as well. This morning, however, the bald-headed guy got on his 'I am always in the forefront of calling people out' soapbox and let go one of his manufactured tirades about Immelt, saying he always calls them out. Question: where was he DURING this reign of incompetence? Where was the board? Immelt is already gone; tirades at this point do nothing the same as analyst calls after the results are out and the move is made. Just saying.


Brexit: Merkel says that she expects progress on Brexit by December. Recall how the Brexit issues were such a big deal for the market . . . just this week? You think this may have some impact on the US futures jumping back up today in addition to the Senate vote? Perhaps a confluence of events versus the one, pin the tail on the cause for futures being up typical analysis?


Fed: Don't forget the Fed head process. Powell is said to be the frontrunner, and he is a market friendly money printer. I guess you should not confuse that with biblical references to money changers, but I would hazard the former is at least as bad and often much more damaging. In any event, another easy money person is the top consideration.


OTHER MARKETS
Bonds: 2.37% versus 2.318%. Passing the budget opens the door to tax reform and thus bonds sell, yields rally.

EUR/USD: 1.1803 vs 1.18475. Dollar rallies on the budget resolution passage

USD/JPY: 113.27 vs 112.561. Dollar stronger here as well.

Oil: 50.91, -0.38. Stronger dollar is impacting oil just as it struggles with the start of its resistance.

Gold: 1285.10, -4.90


Futures are running higher into the opening bell, though as seen all week, the futures moves bear little resemblance to the trade, even as soon as the opening bell rings.

It is option expiration and that can lead to a lot of volatility. Can. Sometimes it does not though I would not be surprised to see some back and forth as the days have shown this week.

Friday on expiration with a couple of hiccups earlier in the week is not necessarily a great day to buy, but as noted last night, there are some really good patterns, and if they are moving well, we can move in.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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