Market Alert - Pre-Market

Futures vs FV: SP -8.87; DJ -60.71; NASDAQ -27.47

Stock futures gapped lower early session and have range-traded since. Dropped to the session lows over the past hour.

Stocks closed higher Friday in a melt up to end the week after a choppier start to the week -- kind of the old school adage, buy on Monday, sell on Friday. Well, after a melt higher, a lower open is not a bad thing in an uptrending market. And, this is an uptrending market.


M&A: Keurig buying DPS


Personal Income, Dec: 0.4% vs 0.4% exp vs 0.3% NOV

Personal Spending: 0.4% vs 0.5% exp vs 0.8% NOV (from 0.6%)


AAPL: Cutting iPhone X production in half on weak holiday demand. It appears those reports were true. Expect the related stocks, particularly chips (e.g. SWKS) to suffer a coattail effect.


Buybacks: LOWS announced a big one.


Sentiment: GS says to expect a market correction in the coming months. Stop the presses! A correction is possible in the coming months? Who would have thought? What gutsy strategist has the audacity to make that call?


OTHER MARKETS
Bonds: 2.669% versus 2.66% 10 year. Hit 2.71+ as yields make the move they should have made before

EUR/USD: 1.2364 vs 1.2419. Dollar actually rebounds as bond yields continue to push higher.

USD/JPY: 108.74 vs 108.70

Oil: 65.71, -0.43

Gold: 1343.00, -9.10


The week is backend loaded with most of the FAANG earnings, MSFT, and others. The market has rallied into the numbers and continued rallying through the initial results. Indeed the market has run since they announced last season. As I said before, they will need to be great to launch a new surge of more than a day or so.

That said, there are still good entries in other stocks, heck even some of those FAANG stocks. A softer open provides opportunities in an uptrend. We will see what makes the move.




Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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