Futures vs FV: SP +17.56; DJ +269.55; NADSAQ +86.83
After a give back Monday that pared the Friday bounce gains, stocks are set to gap higher and nicely so. Futures opened higher after rising late Monday. A steady climb the past four hours has futures rising right into the open.
Earnings are not hurting.
Beats: JNJ; UNH; MS; GS
Misses: DPZ (TL); BLK (TL); GWW
WMT: Lowers its earnings on FlipCart acquisition. Not hurting the stock this morning as that acquisition is seen as a longer term benefit.
NFLX: MS cuts price target ahead of earnings. Three others have done this as well. NFLX has a good pattern going into earnings afterhours. That pattern is promising and could prove the naysayers wrong.
China: Bloomberg and others reporting there is $5.8T in debt 'hidden' (off the books) that could be the tip of an iceberg and cause a 'titanic effect.' China is not well and the news keeps getting more worrisome. For China.
Not a lot of other news. Earnings are taking the limelight and they should. But, the FOMC is Minutes are out WED.
Bonds: 3.163% vs 3.158% 10 year.
EUR/USD: 1.1512 VS 1.15906
USD/JPY: 112.17 vs 111.848
Oil: 71.31, -0.49
Gold; 1234.00, +3.70. Still rising.
Futures are set to open higher as the relief bounce continues. We will see what buys emerge after the big names pulled back from the Friday bounce. Can they hold the move today? Likely.
Jon Johnson, Chief Market Strategist
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