PRE MARKET

Lots of jello moving on the plate during earnings season.

Yesterday, nice breakaway moves in ASML, CSX, GWW, NTRS….BRKB moved on potential to buy back stock.

This morning…DHR good reaction but:

Gapping down this morning:

EBAY, DPZ, AXP, TRV, PM, SAP, UNP

Futures down this morning but no biggie.

From yesterday…great move in TRANSPORTS…an area that has been lagging. Still only in range but UNP will not help this morning.

And GOLD/SILVER continue the dive as the DOLLAR continues to strengthen.

PRE MARKET

Futures flat.

ASML up $8 even though earnings down.

CSX up $2.

MS up $1.50.

Another beta day yesterday.

NFLX the big gap down was bought and finished above the 50 day. Telling!

Even bitcoin waking out of its slumber.

 

BECAUSE CHICAGO AND ILLINOIS DO NOT HAVE ENOUGH DEBT

SOURCE: https://theintercept.com/2018/07/16/chicago-universal-basic-income-ubi/

PRE MARKET

A few things stick out:

FINANCIALS finally showed some serious accumulation yesterday. Whether or not they can continue to move is another story but it is a good start for this important area. It is noteworthy that JPM and C both acted poorly Friday off of their earnings but moved nicely yesterday. We are asked about reasons…one could look at higher long rates but think market buying “value!” Most of these big names are just in long trading ranges.

NFLX coughs one up…gapping down below the 50 day. Thus one of our important rules…know when companies are reporting. Not only did they miss but they also lowered guidance. Earnings and sales were still up strong. We have no clue how the stock handles the gap.

UNH is down almost $5 this morning. We mention it because it has been one of the stronger DOW stocks.

A ton more earnings to come out in the next few weeks. Stay tuned.

PRE MARKET

All the talk today will be Trump/Putin. In case you did not know, Russia is an economic shrimp compared to us. In fact, Texas has a larger economy than Russia even though Russia has 5x the people. Their GDP is just 8% of the U.S. GDP even though they have about 35-40% of the people the U.S. has. Male life expectancy is 13 years shorter than everywhere else. They are dependent on oil/gas/arms. If I was prez, not sure I would even meet with Putin.

Futures flat for a change.

We will highlight each day the strong reactions to earnings.

JBHT up $5 pre market. BAC hardly moving.

NFLX after the close. NFLX received another downgrade this morning after the downgrade Friday.

Tomorrow:

Before open:

CMA, GS, HOG, JNJ, SCHW, UNH

After close:

CHRW, CSX, UAL

 

MARKET NOTES

No reason to get too in-depth on the market here as we now enter earnings season. So far, Friday’s reaction to a few big financials was less than stellar.

The market has been improving. Even the DOW and S&P are playing catch up. But, by our proprietary estimate, about 50% of the market is still not participating. For long lasting moves, that must improve.

Other random thoughts on just about everything:

The U.S. budget deficit hit $607 billion over the past 9 months. Spending on interest is heading higher. By some estimates, about $400 billion of our tax dollars will go to interest in the next year. That is a sin. Remember, all those politicians you see questioning people on the hill…are the guilty party for all this.

In another case of they think we are idiots, this dude Strzok says he was not biased. Funny guy! And if you think that session was a classic case of asinine partisanship and stupidity, just wait to see what happens if the Dems win the house.

Children were separated from illegal parents in 09,10,11,12,13,14,15 and 16 but I do not remember 24/7 coverage of the heartless Obama. I do not remember specials where anchors parked their carcasses down at the border ripping on the head honcho, top dog, big cheese.

Please do not equate the market going up with tariffs being no big deal. They are a big deal. Maybe not at $30 billion but watch what eventually happens if it escalates to the $200 billion…or more.

Trump says the EU is a foe. Say what? We think he has the wrong part of the E. It is the ECB that is the foe as they continue to keep rates negative and continue to print money. We cannot imagine what kind of asset distortions there are out there…but we will find out.

Amazon is up over 90,000% since its IPO in 1997. Barnes and Noble is down 13%.

Inflation over the past 12 months in Venezuela was a meager 43, 378 percent. Do you hear that Bernie? Two years ago, a cup of coffee cost 450 bolivars. It will now cost you one million bolivars.

In case you are worried about inverted yield curves and the market, the last time occurred in 2006.  The S&P didn’t peak for another 21 months and was up over 20% during that time.

The DEMS still have no game except to whine, complain and then when in power…taxes, regulations, fees, fines, mandates, rules and just plain old more control of everyday life. They are actually running on higher taxes. Good luck with that.

And the Mets still suck!