Futures vs FV: SP +12.50; DJ +146.90; NASDAQ +30.80
Earnings are not great this morning, the shutdown hits 27 days, lots of reports of jobs cuts, BUT futures are up. The purported reason is trade. The prior WSJ reports of Mnuchin wanting to lighten or eliminate tariffs to as a good faith gesture to aid trade talks, somewhat refuted by the White House, appear to continue holding sway. Enough that Shanghai closed +1.4% along with other Asian markets.
Jobs: TSLA cutting 7% or 3100 workers. STT cutting a reported 1100 positions. Foxconn is cutting 50,000 jobs reportedly on the drop in iPhone sales.
Earnings beats: VFC, JBHT, Suntrust
Misses: NVDA (TL); AXP (TL, BL)
Industrial Production, Dec: 0.3% vs 0.2 exp vs 0.4 prior (from 0.6)
Capacity Utilization: 78.7 vs 78.5 exp vs 78.6 prior. Highest since 1/2015.
Futures continue to strengthen into the open as it looks as if the indices could make some important moves in pushing through resistance. It is expirtaion and a 3-day weekend is ahead, so a lot can happen in the session. Still, the bias is quite positive.
TEAM is set to open sharply higher. CGC is up about a point, still a buy. As noted Thursday, Friday is not the favorite buy day, but there are some positions we would buy, e.g. CGC, MC, YETI.
Bonds: 2.759% vs 2.752%
EUR/USD: 1.1396 vs 1.1387
USD/JPY: 109.41 vs 109.25
Oil: 52.68, +0.61
Gold: 1282.50, -9.80
Jon Johnson, Chief Market Strategist
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