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Tuesday, May 22, 2018

Market Alert - Pre-Market

Futures vs FV: SP +5.44; DJ +48.71; NASDAQ +27.97

Who would have seen that coming? China announces it is cutting tariffs on certain US autos and auto parts. Gee, the 'nothing' deal is more than first blush, and it will continue to be more. These negotiations cover a lot of ground and not all items are resolved at once. Moreover, China does not like to look as if it was forced to do anything so it makes the announcements on its own, not at summits, joint meetings, etc. Who could have missed it? Most on the financial stations apparently.

NASDAQ is leading higher this morning in something of a reversal from Monday. SOX is seeing some good performances as well as MU announces its largest ever buyback at $10B. QCOM/NXPI deal is being talked up again. Some excitement in chips.

SP500 needs to get off the dime as well. That remains to be seen. Heck it remains to be seen if NASDAQ can make and hold a decent move.


Earnings beats: KSS

Misses: AAP (TL); AZO (TL); TOL (TL, BL = TB)


M&A: ADBE buying Magento


JCP's CEO going to LOW. So is he going to take what he learned at being unable to help JCP to Lowe's?


OTHER MARKETS
Bonds: 3.067% vs 3.056%. Bonds fading again, yields rising again.

EUR/USD: 1.1792 vs 1.1786

USD/JPY: 110.91 vs 110.95

Oil: 72.55, +0.20

Gold: 1292.50, +1.60


Futures again gapped higher in the early morning hours, holding that range all morning. Monday saw such action result in gains, but many areas were well off the highs by the close. At least they are back on the horse, moving upside again, and the continuing upside bid shows definitely more buyers than sellers even if volume is low and breadth narrow.

Looks as if NASDAQ wants to try and join in on the upside, something the market needs. Will see if the recent leaders that are testing, software and chips, can rebound again with other market areas.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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