Market Alert - Pre-Market

Futures vs FV: SP +10.91; DJ +120.88; NASDAQ +44.40

Futures moving from low to high all morning, spiking a half hour back, now giving up that last spike as perhaps they hit saturation point for the morning.

Earnings are of course really rolling.

Beats: CAT; MMM; CELG; LUV; NOC; LVS; STM and more

Misses: F (BL); WHR (TL)


Dollar: Mnuchin 'walks back' his statements but not really. He said he thought he was very clear in stating that the current weak dollar works in the US' favor. He never said the US did not support a strong dollar, just that the current weakness was beneficial. I have to say, I understand his exasperation; I am blunt, saying what I believe, and yet many people attempt to ascribe some other meaning to the plain words. My kids, for example . . .


ECB: No change in policy, but some day, SOME DAY, it promises it will raise rates. It will. For certain. Some day. Draghi is trying to create a new bird the Dove Hawk. Good luck with that. I hear a monkey was just cloned so maybe he can do it.


Taxes: France's Macron says that France needs to get more corporate competitive as well. Hmmm. Did the US fire another shot heard round the world?


Jobs: HD announces up to $1K bonuses for employees. If you need to get anything at HD, might want to do it today as at least the employees will be happy. Of course, they will probably be off in their small groups talking about the bonuses and who got how much versus - - helping customers.


OTHER MARKETS
Bonds 2.656% vs 2.639%. Bonds fade, yields rise, again.

EUR/USD: 1.2521 vs 1.2435. Euro again running against the dollar.

USD/JPY: 108.72 vs 109.33. Dollar continues tanking against yen

Oil: 66.50, +0.90. Oil surging after testing the breakout.

Gold: 1359.00, +2.70


Futures are up, one of the CNBC anchors just said it was going to be quite an open. Yes it will open up, but if you look at the futures the past 30+ minutes they are heading lower. Again, will there be staying power? Low to high is better and perhaps there will be some lower trade after the open. Not turning negative, but off the morning levels. That may provide the entry opportunity on some positions. We will see how that plays out. If the sellers starting pushing the gains down again we will watch the resilience and see if the bids return or if we need to book some more gain.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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