Futures vs FV: SP +5.41; DJ +152.04; NASDAQ +11.67
DJ futures are leading as the stock market BTD faithful are back and have some basis for buying thanks to a bevy of large cap Dow industrials beating estimates. Again we see the large companies are the ones doing well while everyone else struggles.
In a 'who the hell cares?' morning story, the financial stations are in Saudi Arabia for another global conference where those in control try to influence policy to gain more control. The media lapdogs, so excited to get any interview, gobble up their 'suggestions' as if they were manna from heaven as they are used like downtown hookers.
Okay then. What else is going on?
Earnings beats: CAT; MMM; UTX; GM; SBK; LLY; NVS
Misses: MCD (BL -- but no one cares because same store sales rose 6%); WHP (TL, BL -- and Sears is dropping its brands over pricing); ZION
AAPL: Another report out of Japan says that X Phone unit orders are now 20M, half of the forecast. The Wozinak says the X Phone will be the first AAPL phone he did not buy day one. AAPL dove lower but has recovered some.
Taxes: Senator Corker who laid down on budget issues during the Obama administration but who now is part of a majority and his party has the presidency, is now concerned about deficits. He renewed his war with Trump this morning. I would suggest the lame duck senator who is retiring because he could not get re-elected go ahead and resign right now and play golf with his personal friend former President Obama. they could tell 'remember that time' stories.
The 'duh' story of the day: Bloomberg reports that millennials are more likely to buy a self-driving car. Well of course! Millennials want everything done FOR them, including speech and thinking. They also have no problem ceding their liberties and freedoms to authority just so they can cocoon like the humans in 'The Matrix.'
OTHER MARKETS
Bonds: 2.41% versus 2.366%. Highest since May
EUR/USD: 1.1758
USD/JPY: 113.86 vs 113.42. Dollar still moving higher.
Oil: 52.29, +0.39. Quietly recovering to challenge the top of the range off a higher low.
Stocks will open higher again and we will see if they can hold the move this time. Futures have not been a great indicator of ultimate market moves but this one has more behind it with the earnings and with DJ30 taking the lead because of its earnings components. The rally will find more staying power with those, but we are watching the small caps, midcaps, and NASDAQ closely.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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