Before the Open (Nov 2)

Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets closed with a lean to the downside. Japan dropped more than 2%; Australia, Hong Kong and China fell more than 1%. Europe is currently mostly up. Turkey is up more than 5%, Greece more than 2%, and Germany, Belgium, Sweden, Russia, Denmark, Finland and Spain are also doing well. Futures here in the States were down moderately overnight, but are now suggesting a flat open for the cash market.
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The dollar is down. Oil and copper are down. Gold and silver are down. Bonds are down.
I don’t have anything to add to the comments made in the weekly report or video posted over the weekend. The overall trend is up, but last week, despite the S&P moving up, the index fell 4 of 5 days and closed close to where it opened. The small caps remain a drag, and a few breadth indicators have been moving down.
Overall I like the market and believe new highs will be made later this year or early next year, but in the near term I’m much more cautious. The quality and quantity of good set ups is so-so, and per the indicators, a little rest or short-term correction is needed to allow the charts to reset themselves.
Don’t force things right now. Be patient.
Stock headlines from barchart.com…
AbbVie Inc. (ABBV +10.07%) rose climbed 4% in pre-market trading after Goldman Sachs Group added the stock to its ‘Conviction Buy’ list.
Las Vegas Sands (LVS +1.35%) and Wynn Resorts (WYNN +0.07%) both rose nearly 3% in pre-market trading after a report signaled the slump in Macau’s gaming revenue may be easing.
Loews (L -0.92%) reported Q3 EPS of 50 cents, below consensus of 56 cents.
Visa (V -1.18%) reported Q4 EPS of 62 cents, weaker than consensus of 63 cents.
Cardinal Health (CAH -0.98%) reported Q1 EPS of $1.38, higher than consensus of $1.10.
Diamond Offshore Drilling (DO +1.84%) reported Q3 EPS of $1.02, well above consensus of 60 cents.
Chipolte Mexican Grill (CMG -1.23%) slipped 6% in pre-market trading after it said it will close 43 restaurants as health officials investigate an E. coli outbreak linked to the food chain.
Mylan NV (MYL -3.69%) said it received a subpoena from the U.S. Securities and Exchange Commission seeking documents about “certain related party matters.”
Hewlett Packard Enterprise ({=HPE-W=}) climbed over 1% in after-hours trading after the company was inserted into the S&P 500 as of Friday’s close.
Vertex Pharmaceuticals (VRTX -1.13%) dropped over 1% in after-hours trading after the company received a subpoena from the U.S. Justice Department on its laboratory practices.
Eros International Plc (EROS -13.14%) slipped 1% in after-hours trading after the Rosen Law Firm said it was investigating potential securities claims on behalf of shareholders of Eros resulting from allegations that Eros may have issued materially misleading business information to the public.
Valeant Pharmaceuticals (VRX -15.90%) fell over 1% in after-hours trading after Standard & Poor’s Ratings Services downgraded the company’s credit rating to ‘B+’ from ‘BB-‘ with a negative outlook.
Earnings and Economic Numbers from seekingalpha.com…
Today’s Economic Calendar
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
Today’s Earnings here
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers