Futures vs FV: SP -3.23; DJ +13.24; NASDAQ -14.47
DJ30 will lead again as the biggest of the biggest, at least in true industrials and finance, report solid earnings. They should; they have had ALL the benefits of tax laws, healthcare laws (or more accurately, favoritism exemptions from the healthcare laws), and regulations designed to stifle competition. Again, they SHOULD be strong.
BEATS: BA; V; KO; ANTH; WBA; TX; AMD (but lowered guidance)
MISSES: T (TB); CMG (TB); EXRS (TL)
Durable Goods, Sept: 2.2% vs 1.3 expected vs 2.0 Aug (from 1.7)
Ex-Transports: 07 vs 0.5 vs 0.7 prior (from 0.2
Business investment: 1.3% vs 1.4% Aug (from 1.1%)
Overall a solid report no doubt helped by the storms that required a lot of new durables. Sustainable? You know the old Keynesian theory: break a window just to have it fixed to 'create' economic activity. Once you fix the window what do you do then? Break it again? Not a great use of resources one could argue.
OTHER MARKETS
Bonds: 2.455% vs 2.421%. Bond yields have taken hold for their yearend run. Basically bonds did this in late 2016 and 2015, i.e. yields rising to year end just to roll over when the next year started and bonds rallied back. We will see if the Chairman replacement breaks this pattern.
EUR/USD: 1.1784
USD/JPY: 114.01. Holding its gains.
Oil: 52.23, -0.25. Still bumping its head at 52.50 to 53, but there is no real breakout until oil tops $55/bbl.
Gold: 1273.60, -4.70
Stocks are opening mixed and again we see if RUTX, NASDAQ, SP500 suffer any hiccups or if they can iron them out as did SOX.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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