Market Alert - Pre-Market

Futures vs FV: SP +2.56; DJ +84.29; NASDAQ -3.46

Futures up early, maintaining very modest gains for the NYSE indices, modest NASDAQ losses. Basically this is how it went Tuesday with NYSE stocks stronger, NASDAQ & SOX weaker. The recovery in the small and midcaps remains impressive though the life in financials really helps SP500 as well. Some of those SOX and NASDAQ stocks that helped keep the market moving higher while the small, midcaps and SP500 stocks struggled are now taking some time off as money moves to some other groups.


GDP Q3 Revision: 3.3% vs 3.2% exp vs 3.0% first read.

Corporate profits: +5.8%. Nice jump in profits helping fuel the number.


Fed: Dudley says the Fed is considering its own digital currency. Really? Its own? Does that not conflict with its mandate? Interesting.

Yellen Farewell: In here swan songs, Yellen is saying that asset values are high but 'contained.' Hmmm. I recall Bernanke saying housing prices and other assets were 'contained' just before they were not.


Not a lot of other news this morning. NKorea and its DC capable missile -- the one thing that might get DC's attention, i.e. they are not immune from that as they are everything else.

UK is dealing with an outbreak of scarlet fever, a relative of strep throat. It was a big children killer in the early 1900's and the Brits and other health specialists are puzzled as to its return. Well, there are a lot of diseases we had beaten in the western world that are returning, e.g. polio, TB, diphtheria -- we are importing diseases we spent billions defeating.


Earnings beats: TIF; MRVL; NUAN; ADSK (but ADSK was really weak).


OTHER MARKETS
Bonds: 2.377% vs 2.326% 10 year

EUR/USD: 1.1835 VS 1.18488. Dollar rebounds, recovering some of the loss but the euro is still well-positioned.

USD/JPY: 111.97 vs 111.583. Dollar continues its rebound here.

Oil: 57.69, -0.29. Still testing that break higher

Gold: 1291.90, -7.24


Relatively quiet open. Money definitely moving to small, midcaps but also other big NYSE names. NASDAQ and its big names as well as SOX are taking a breather -- that is what it is for now. Watching to see if they hold support, suggesting they are just pausing before moving again.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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