Market Alert - Pre-Market

Futures vs FV: SP +6.06; DJ30 +93.97; NASDAQ +1.11

NYSE large cap futures are easily stronger than NASDAQ, raising the suggestion that the market may be moving back to favoring those stocks over the techs investors have shown an affinity for the past week as they played the bounce off the sharp drop.

Of course that means watch FAANG and those such as MSFT that broke to new highs Monday after shaking off that selling. FAANG stocks bounced but have slowed/stalled the past two sessions. Either testing and resting or out of gas. No real carnage on those stocks pre-market, just more or less flat again.


PPI, NOV: 0.4% as expected and as in October

Core: 0.3% vs 0.2% exp vs 0.4% October

Final Demand: 3.1% year/year, highest since 12/11. Energy played a large role in the price rise and interestingly the price of loan services rose. Is there enough demand for loans to warrant price increases? Apparently. Signs of a further economic recovery as companies acquire funds for expansion or inventory loans or payroll loans? Or, is it just that they have to take out loans to operate? Half full or half empty?


FOMC: Begins its 2-day meeting, expected to raise rates 25 BP Wednesday.


Russia: Pulling out of Syria. Again. Heard that before.


Malls: Consolidation. France's largest mall owner buying Australia's largest. Trying to combat the online threat.



OTHER MARKETS
Bonds 2.396% vs 2.389% 10 year. Bonds weaker as FOMC starts its 2-day rate hike meeting. Everyone has anticipated a December rate hike and now we see if it plays out.

EUR/USD: 1.1749. Dollar up just a hair.

USD/JPY: 113.48. Dollar down a hair.

Oil: 58.42, +0.43. Brent back over $65/bbl.

Gold: 1244.50, -2.40. Gold continues its woes. Fed hiking? Bitcoin stealing volume away?


Futures mostly holding their gains as the NYSE large caps take the early point. That begs the big question, i.e. whether FAANG and large cap tech will still find some favor or will fall back into the left behind. AAPL made a strong move Monday in price and on volume. Perhaps AAPL will lead the NASDAQ big caps now. This will be the day to show it.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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