Market Alert - Pre-Market

Futures vs FV: SP +3.25; DJ +80.45; NASDAQ +0.75

Futures for the large cap indices are higher, but they show the same distribution of late, i.e. NASDAQ lagging even though it is up. That is showing itself more as the bell approaches as NASDAQ's modest morning recovery gains are falling as SP, DJ futures rise.

It would appear the moves into the industrial-related stocks is not over yet though it would appear the big NASDAQ names are near a bounce point. Indeed, earlier NASDAQ futures were down rather hard and we were actually wanting to see a down open that would result in a final flush out for this downside leg the past week.

The news is rather sparse.

Taxes: In conference committee to iron out the details and Ryan may present something later today. Brady says the reconciled version likely includes the ACA individual mandate repeal, a move that would save near $350B.


Trade Deficit: -48.79B vs -44.9B prior (revised from -43.5B). Even with a weaker dollar the deficit climbs.

The economic data has not been that great of late with the trade deficit on the heels of Monday's -0.1% Factory Orders (October), down from +1.7% in Sept but better than the -0.4% expected. It is, however, October and there is typically slowing in October.


Buybacks: BAC goes ahead and adds $5B in repurchases.


OTHER MARKETS
Bonds: 2.388% versus 2.381% 10 year

EUR/USD: 1.1833 vs 1.1873. Dollar sports a modest gain

USD/JPY: 112.58 vs 112.40. dollar a bit higher here as well.

Oil: 57.27, -0.20. Modest declines, holding most of the move higher.

Gold: 1275.80, -1.90


Another day of upside for the NYSE indices at the expense of NASDAQ, SOX, at least for the open. NASDAQ futures were down quite significantly but did recover to positive-ish, so there is some nibbling. Some, but not enough to offset the money still moving to the industrial-side stocks. As noted last night, when the move into those stocks slow, then a relief move in those NASD stocks.

That said, there are stocks kind of in-between that are in very good position and we will see if they get the bids.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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