Market Alert - Pre-Market

Futures vs FV: SP -1.54; DJ +7.81; NASDAQ +1.17

Geopolitical, Domestic, and stock news dominate the start of the week. While futures were lower Sunday, US futures have recovered from modest losses and at rising into the US open.

Saudi Arabia: Missile strike out of Yemen considered an 'act of war' by SArabia. Corruption crackdown as several princes 'arrested' and held at the Ritz Carlton. Saudi Plunge Protection Team rescued its market. Seems to be the MO for market declines, event related or not.


Taxes: House starts the debate and markup of the tax proposal today. Already there are some good amendments that will be offered and accepted. It is of course much about the special interests and their fight to keep their reason for existing alive.


M&A: AVGO makes its bid for QCOM official; both stocks are up yet again to start the session.

S/TMOS call off their attempted merger. too many egos in the room.

AET/CVS trying to get their deal closed.


INTC/AMD joint venturing to create a graphics chip that will take on NVDA.


Fed: Dudley to retire mid-2018, well ahead of the end of his term.


Earnings: Many more report this week.
BEATS: KORS crushed expectations.

Misses: MYL (TL, BL); Berkshire Hathaway


OTHER MARKETS
Bonds: 2.322% vs 2.332% 10 year. Up given the world issues, namely Saudi Arabia.

EUR/USD: 1.1586 vs 1.16092. Dollar continues strengthening.

USD/JPY: 114.10 vs 114.06

Oil: 55.94, +0.30. Oil higher on the worries in the Middle East, but oil broke out last week from its trading range. It is now a matter of whether it can hold the breakout.

Gold: 1272.10, +2.90


Futures started early morning lower, but as the Saudi PPT rescued that market, futures improved. While mostly lower toward the open, they have trended back upside.

Last week was dominated by the large cap techs, chips, and even SP500 improved its pattern. This week we watch for the FAANG and other large cap tech, financial as well, continue moving higher. We will see if some other areas join, e.g. oil.

A bit of weakness on the open and you may see the BTD faithful return again given an opening to pick up AMZN, FB, etc. at a 'better' price.





Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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