Market Alert - Pre-Market

Futures vs FV: SP +3.17; DJ +31.26; NASDAQ +21.21

Futures on the rebound after the Monday pause from the big Friday break higher. NASDAQ is again leading the move while SP500, DJ30 are up quite modestly.

Fed: Starts a 2-day meeting today. Nothing is expected this meeting, but the tone is anticipated to strengthen the December hike view.


Earnings remain better overall.
Beats: MC; PFE (BL); MDLZ; TXRH (TL); BP; SNE; EXAS

Misses: UA (TL); AET (TL); API (TB)


Paychex jobs survey: Reports a 'steady' +3% as the job market 'calms' down.


Taxes: After some in the House talked of a 5-year phase in of the corporate tax cut the White House says the reform will increase GDP by 3% to 5%. CNBC's Liesman tends to agree with the economic increases discussed.

As for the phase-in, you either believe it works or not. In other words, if you really believe that the studies are correct and that business taxes simply are taxes on consumers as they raise the prices consumers pay dollar for dollar of the tax, then you should cut all at once and get the biggest bang immediately. Prices will start to fall as competition forces companies to cut. One tries to get competitive advantage, then they all start cutting. So, don't wait; that only distorts the efficacy and hampers those who really need the cuts, i.e. small businesses.


China: Disappointing PMI data has some saying the Chinese economy has "rolled over" as one doom and gloom website says. Let's see, according to them the Chinese economy has rolled over 5 or 6 times in the past couple of years.


Gold: A buyer from a branch of the Royal Canadian Mint received a gold wafer (1 oz) that had virtually no gold in it. It was from the branch, appeared to have all the proper imprints. The RC Mint would not take it back until the buyer went to the news. Then it refunded the money and made the cavalier statement that the packaging and imprint indicated rather easily it was counterfeit. Yes, so much so, the branch of the mint did not detect it. How many more are out there?


AAPL: Reviews of Phone X are mostly slobbery, but some are saying the screen is variable in brightness/clarity, though still saying it is the best Apple phone ever. One would hope given the $1100+ price. It should make your breakfast and clean your house as well.

More AAPL: It is said to be dropping QCOM chips from its next round of phones and iPads. QCOM stopped sharing its software with manufacturers and AAPL argues that makes it harder to make quality devices with the chips. QCOM could have 'Appled' itself, i.e. did what AAPL did when it would not share its code with any developers and got left behind in the PC market.


OTHER MARKETS
Bonds: 2.374% vs 2.37%

EUR/USD: 1.169 VS 1.1646

USD/JPY: 113.42 vs 113.17

Oil: 54.15, 0.00

Gold: 1273.10, -4.60


Earnings are good enough, the bad news is not bad enough, not nearly so, and stocks are set to rally again, continuing the Friday break upside. BTD faithful all present and accounted for.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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