Market Alert - Pre-Market

Futures vs FV; SP +8.05; DJ +108.02; NASDAQ +21.21

Futures dropped at the early morning open and trended lower to 7:10ET. Since then a modest recovery from the lows has turned aggressive upside . If they had held their position from last night the open would be quite strong. As it is, decent enough.

There is very little new news. Lots of fringe stories, nothing really impactful in itself. Of course, Trump has not issued his Friday trade tweet yet.


WMT: 'twas the night before Christmas and . . . WMT complained the consumer may have to pay a bit more for Christmas lights. Grills may cost a bit more. Who would have thought? Tariffs on cheap crap imported from China (don't get me started on how bad Chinese aluminum is) will raise prices on some cheap crap imported from China. Who would have thought? Surely the US cannot bear such a horrific burden. The horror for tailgaters and their throw away Chinese grills. And the NFL thought the kneeling controversy was bad. What will they call it? Tailgate-gate? Give me a break WMT. Sell some quality stuff and people will appreciate it.


Expiration and S&P rebalance: there will be massive volume on the close today as the S&P rebalance takes place. This is the biggest story.


Earnings beats: SCS, MU (but MU's guidance increases fears of a continued memory chip price drop.

Misses: UNFI (TL, BL)


OTHER MARKETS
Bonds: 3.078% vs 3.068%

EUR/USD: 1.1757 vs 1.1715

USD/JPY: 112.69 vs 112.41

Oil: 70.75, +0.43

Gold: 1201.60, -9.7


Stocks continue ramping back upside toward the open and now sport solid gaps to come. Friday, expiration, S&P rebalance. There will be stock plays hitting buy points today. There is concern here there could be some head fakes on the session that could change next week. We will see; if a good buy presents, it typically pays to start participating at least partially.

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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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