Market Alert - Pre-Market

Futures vs FV: SP +2.24; DJ +68.21; NASDAQ -5.77

AAPL downgraded at Nomura and Apple is off almost 2 clicks, dragging NASDAQ down with it. Hmmm. Perhaps showing the market is a bit jittery as these new highs are put in and the tax bill passage could come as soon as today. Nomura says 30% to 40% drops in revenues for some products. This as some of AAPL's items (airpods) are sold out due to massive demand.


Holiday spending: Long before anyone was saying so, I was writing this would be the best holiday spending in over a decade. Today CNBC released its survey and says that the average person will spend $900+ this year, the best level in more than 12 years.


M&A: McDermott is buying Chicago Bridge and Iron


Beats: DRI; NAV

Misses: FDS (TL)


Housing Starts, Nov: +3.3% versus -3.1% expected vs 8.4 Oct (from 13.7)


Taxes: Vote today? We will see. Cramer says he liked Reagan a lot but does not believe in trickle down economics. Then he went on to describe what happens with this kind of tax cuts and lo, it is trickle down economics: more investment because of easier regulation, higher risk/reward, that creates more businesses, more good jobs, and higher wealth for all. Trickle down.


FBI: McCabe testifying today about all that went on with Clinton, Trump, etc., but it is all behind closed doors. Can you believe it?


OTHER MARKETS
Bonds: 2.427% vs 2.398%. Wow, bonds selling, yields rising on the long end for a change.

EUR/USD: 1.1821 vs 1.1782

USD/JPY: 112.781 vs 112.55

Oil: 57.39, +0.23

Gold: 1264.20, +0.30


Futures gapped up early and have range-traded since, coming off the highs the past 40 minutes. NASDAQ as noted is lower because of AAPL and other FAANG stocks are lower, e.g. GOOG. Perhaps avoiding the Christmas rush and people are edging toward the door just a bit. Big recovery on GOOG, and if AAPL is a target, perhaps they are figuring who may be next.

Will see if money does leave these and how much, and where money is moving as there are a lot of stocks with good patterns that can make moves.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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