The Morning Look

Market Update:

Stock futures are higher ahead of Tuesday’s open on the first trading day of 2017.

Gary’s Thoughts: Happy new year to all. Hope you had a great holiday. We are back in the states with serious jet lag but nevertheless, alive and well. We will wait til end of week for bigger report as we want to see how the new year starts out. We walked into new year with some deterioration in markets past couple of weeks but that can be negated quickly if money finds its way into the market to start the year…and that’s exactly what we are getting this morning with a gap to the upside. The worst areas recently have been the big cap growth names like AMZN,GOOGLE,FB,PCLN and others. Will be interesting to see what’s in store. Remember, earnings in three weeks.

The one area that has hardly budged is the financials and to be blunt, unless they start coming in, any damage will be limited.

Economic Calendar:

  • 2-Yr Note Settlement
  • 5-Yr Note Settlement
  • 7-Yr Note Settlement
  • PMI Manufacturing Index 9:45 AM ET
  • ISM Mfg Index 10:00 AM ET
  • Construction Spending 10:00 AM ET
  • Gallup US ECI 2:00 PM ET

Highlights:

  • Trump takes to Twitter to slam Obama for transition ‘roadblocks’
    Gary’s Thoughts: We promise you…unlike other presidents, this one will not go away. We will let you decide what that means.
  • Islamic State Claims New Year’s Massacre at Istanbul Nightclub
    Gary’s Thoughts: We were in Europe New Year’s eve, Security was tight…but the bad guys know the soft targets and exploit them. There is simply no way of stopping these one offs.

Required Reading