Market Alert - Pre-Market

Futures vs FV: SP +8.77; DJ -10.01; NASDAQ +108.21

Korean war over or AMZN earnings? What is the bigger story. Well, Korea is huge long term. Near term, earnings rule.

AMZN, INTC, MSFT all beat and beat well. NASDAQ futures are surging as those super large caps are posting strong moves (MSFT 3.6%, AMZN 8%).

It would appear that earnings are NOW good enough for the buyers. The futures of course reflect that. Thursday was a large cap session, indeed the entire week is mostly large cap even with RUTX' solid pattern. NASDAQ is set to break higher in its range and lead to the weekend. At least we bought some NFLX, and ATHM is set to surge today as well.

There are also the 'other' stocks such as HD, MRO, etc. Those are still solid and today are taking a back seat to the big names. That is okay. If they back off some we will be able to pick up some more positions on them as they test Thursday's strong move. Perhaps not today, but not too far in the future. Their patterns are solid and that means they are under accumulation by the funds. They will be back up as well as we see NFLX et al rally today.


GDP Q1 1st: 2.3% vs 1.8% exp vs 2.9 Q4

Consumption: 1.1 as expected vs 4.0% prior

Prices: 2.0% vs 2.2% exp vs 2.3 prior

Not bad for an economic slow patch.

Employment Cost Index: 0.8 vs 0.7 vs 0.6 prior


UK GDP: lowest since 2012.


OTHER MARKETS
Bonds: 2.977% vs 2.975%. cracked 3.00% but not holding it thus far.

EUR/USD: 1.2066 vs 1.2103. Dollar rallying again.

USD/JPY: 109.43 vs 109.28. Up here as well.

Oil: 67.95, -0.24

Gold: 1320.70, +2.80


Futures were up afterhours last night thanks to the IAM (INTC, AMZN, MSFT), but they actually started well off those highs in the early morning. A steady build higher, however, has them trading at morning session highs, matching the afterhours levels.

Stocks are going to gap upside led by the large NASDAQ companies. SP, DJ are following, small and midcaps likely are left on their own for the session, ceding it to the NASD 100.

ADBE going to gap a few points higher, a familiar story on the morning. Okay, not a great day to buy, but we will look at those 'other' areas with great positions and see if we want to pick up any more oil, or HD, or IMMU, or perhaps if M pulls back some.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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