PRE MARKET

FB up strong on 8% earnings growth but beat the lowered estimates.

AAPL hardly beat lowered estimates on a 5% sales drop.

That’s just two stand outs. There are others.

Never ever ever ever ever underestimate the Fed.

The market turned on our fed turning. China adding. Japan still printing with negative rates. Europe still negative rates with talk of adding more QE. ..and on and on and on.

Most importantly, everything held the 50 day average in the past few days as Bernanke (Jay Powell) blah blah blah easy money yesterday.

FB, MLNX, UPS, MA, NOW, WYNN gapping up.

MSFT, V, DWDP in the DOW gapping down.  TSLA, CRUS, RTN gapping down. And still a ton of earnings to come.

 

GOLD…AND SILVER

GOLD is on the move as it broke above some more resistance. GOLD STOCKS are doing the same with a few names at new yearly highs. Normally, we would tell you this is because a weak dollar. While the dollar has been down, it has not been down much. To be watched. Silver also participating.

EARNINGS AND MORE EARNINGS

BOEING (BA), is up $22-$23 on strong sandbagged numbers. That will be good for 150 Dow points, give or take…and if nothing changes by the open.

APPLE (AAPL) is up $8 from yesterday’s close. These were not growth stock numbers as sales were down…and look no better for the coming quarter.

ANTHEM (ANTM) up a juicy $19 in the MANAGED CARE space.

AMD misses, guides down…but then says rest of year better. The stock is up 9%. So you miss…you guide down but then are supposed to be believed you will get the rest of the year correct?

A few blow-ups in ALGN, AMGN, ILMN, COHR, SLAB, MKSI, JNPR.

Of note from yesterday…both PHM and WHR in the HOUSING and HOUSING-RELATED area open down nicely and reverse with WHR up strong. This is to be watched as rates have come down and the Fed doing a 180. Also, duh…as we told you would happen, Draghi, ye of the ECB now says they could do more QE if necessary. This after claiming they would stop and tighten. Remember who there people are.

Powell today…blah blah blah data dependent blah blah blah we have necessary tools blah blah blah markets better blah blah blah incoming data…blah blah blah.

 

 

PRE MARKET/EASY MONEY

Yesterday…not so good…but not the end of the world. It is somewhat normal to get choppy in this environment as earnings moving the jello on the plate. CAT and NVDA not so good. After futures were weak overnight, we get a little of this:

“ECB open to resuming quantitative easing if needed!” That line comes from ECB Central Bank easy money nut job Mario Draghi. It’s not enough interest rates are a -.4%. It’s not enough they have already printed trillions. As we have told you, this experiment is never going to end until adults start running the show or the market sticks a certain finger back at them.

Futures up a wee bit now. MMM up $5 helping. Of course, the White House is yapping how the trade talks will go swimmingly even though we just charged Huawei with a bunch of stuff.

PRE MARKET BLOW UPS

Instead of a long, drawn out note this morning:

CATERPILLAR (CAT) missed by a mile and is down a large $9. It’s not the news. It’s how things react to the news.

NVIDIA (NVDA) just lowered numbers markedly showing down a whopping $23. It’s not the news. It’s how things react to the news.

In past weeks, what we believed to be poor earnings were mostly bought up. Not today. It is only two names but may we say an important two names. NVIDIA is an important SEMICONDUCTOR name. This important group was very strong the past couple of days. Not sure we need to tell you how important CATERPILLAR is.

Stay tuned. Much more to come from the earnings roulette game.