Market Alert - Pre-Market

Futures vs FV: SP +9.72; DJ +115.38; NASDAQ +24.77

Pretty much everything is higher to start Thursday as even big chips, big techs, and FAANG bounce from the Wednesday blood letting. The other indices are simply adding to their gains. A one-day correction? Futures are good, but then again, futures have been less than reliable in terms of the final outcome the past weeks.


Personal Income, Oct: 0.4% vs 0.3% exp vs 0.4% Sep

Personal Spending: 0.3% as expected vs 0.9% prior (from 1.0%)

Core PCE: 0.2%, +1.4% year/year. Fed's favorite inflation indicator picks up a bit. Surely the Fed is pleased. Only the Fed and government's massively in debt like inflation, and they are trying to brainwash everyone that inflation is a good thing. No it is not. You don't want pernicious deflation and you don't want pernicious inflation. The problem is, those in charge have little power to prevent either, but they certainly can foment both.

Okay, so spending dropped in October. Is that something bad? No. It is ALWAYS lower in October, a slower, pre-holiday month. It is a historically weaker month economically.

I did hear Steve Liesman on CNBC today say that it could be a good Christmas holiday season was coming for consumption. About time they start realizing this is going to be the best season in at least a decade.


OPEC: Extends production cuts through end of 2018. Oil prices up modestly, holding the test of the breakout.


Earnings beats: SHLD; Express; WDAY; BOX (TL); PVH

Misses: MIK (TL); JACK (TB); LAZ (BL)


OTHER MARKETS
Bonds: 2.392% versus 2.385%. Bonds fade, yields rise for a second day following that WED sharp gap lower

EUR/USD: 1.1852 vs 1.1851. Flat for a change.

USD/JPY: 112.32 vs 112.07. Up again versus yen

Oil: 57.79, +0.49. Still in the test of the last break to a higher high

Gold: 1279.90, -6.29


Futures are rallying into the open, NASDAQ futures as well. As noted above, it could be a one-day 'correction' that is getting bought. We have some plays on the report but will also look at AMZN, GOOG, AAPL, etc. to see if they provide solid entries. FB? It fell to the 50 day MA; if it knifepoint turns off the 50 day, that is an entry. Has to show it can hold it.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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