*** ALL THINGS MONEY >>>> ATM ***

[EZ2]

Break out the pompoms, because this asset is leaving stocks in its dust
MARKETWATCH 7:25 AM ET 2/24/2017
Critical information for the U.S. trading day

There's a growing dearth of cheers when stocks break records, like the Dow did yesterday with its 10th-straight winning close.

"There should be a deeper concern this record run in the U.S. stock market is grossly disproportionate to all of the uncertainty and systemic risk in the global economy right now," Joel Kruger, currency strategist at LMAX Exchange, tells MarketWatch.

"The rally is more analogous to a person climbing a dangerous ladder, only doing so in an effort to avoid infection from a sick person chasing below," he says.

The new records for stocks are raising anxiety levels, because no one knows when or how the POTUS-fueled reflation trade will end, according to London Capital Group analyst Ipek Ozkardeskaya.

Hopes for a fiscal boost to the economy took a knock after an AP story emerged about a possible delay to President Donald Trump's infrastructure plans (https://www.axios.com/the-backup-plan-on-trumps-infrastructure-package- 2280024749.html) until next year.

If the Trump trade is about to turn, then it's only natural that safe-haven plays such as gold will start to pop higher. The precious metal is up again this morning, after hitting a three-month high yesterday.

Opinion: Why is Dr. Copper so worried about Mr. Market? ()

That brings us to our call of the day, from Hantec Markets's analyst Richard Perry, who says the run for gold's pal silver is just getting started.

"The market has been consolidating for much of the past week, but the bulls seem to be positioning for their next move higher now," said Perry in a note to clients. He says a recent move above the $18.14-an-ounce mark suggests the bulls are in control.

Silver, which works as inflation hedge and keeps your iPhone ticking along, has been a sweet trade so far this year, up 14%. Here's a chart of the Silver Miners ETF (SIL) :

And the weekly side is looking fairly steamy:

(

#Silver Heading for Best Weekly Run in More Than 10 Years
more on @TheTerminal pic.twitter.com/KEt4C6vhqV

— Stuart Wallace (@StuartLWallace) February 24, 2017

)

Key market gauges

The bulls are definitely resting, with the Dow , S&P 500 and Nasdaq-100 futures digging into the red. That's after the DJIA's 10th-straight record close (http://www.marketwatch.com/story/dow-eyes-10th-day-of-gains-as-us-stock- futures-rise-on-back-of-oil-rally-2017-02-23) on a moderate win, and slim gains for the S&P (http:// www.marketwatch.com/story/dow-on-pace-to-slip-after-4-record-closing-highs-in-a-row-2016-11-16). Faring worse was the Nasdaq Composite , which fell 0.4%.

Oil (http://www.marketwatch.com/story/oil-sticks-to-19-month-highs-after-upbeat-opec-comments-2017-02-22) is down (http://www.marketwatch.com/story/oil-prices-step-back-with-us-rig-count-data-ahead-2017-02-24), and Asian stocks (http://www.marketwatch.com/story/asian-stocks-slide-lower-after-fed-minutes-released-2017-02-22) ended mostly lower. The dollar is off.

See the Market Snapshot (http://www.marketwatch.com/story/dow-poised-to-break-10-day-string-of-record-closes-2017-02- 24) column for the latest action.

The chart of the day

Retailers took a hit at the close of trading yesterday, as noted by Michael O'Rourke of JonesTrading, who attributed the late losses to comments by Trump:

"Although it was lukewarm, in an exclusive Reuters interview today, for the first time, the president expressed approval of a border-adjusted tax. The headline hit late in the day and sent a number of retailers and apparel related companies lower, because they are the largest importers in the country," says O'Rourke.

Read:From a risk-of-bankruptcy standpoint, the retail business is the new oil and gas (http://www.marketwatch.com/ story/retail-industry-is-expected-to-replace-oil-and-gas-as-2017s-distressed-sector-2017-02-15)

Target (TGT) , Wal-Mart (WMT) , Home Depot (HD) and Nike (NKE) were among those sliding. We'll find out whether the pain continues Friday:

The stat

54% -- That's the current approval rating for the Affordable Care Act that the Trump administration is seeking to repeal and replace. It's highest level of public support for the Obamacare law on record, according to a fresh survey from Pew Research (http://www.pewresearch.org/fact-tank/2017/02/23/support-for-2010-health-care-law-reaches-new-high/).

The buzz

J.C. Penney (JCP) and Foot Locker (http://www.marketwatch.com/story/foot-locker-profit-and-sales-rise-above- expectations-2017-02-24)(FL) earnings are on the docket before the open.

Gap (GPS) could rise after the fashion retailer's sales and earnings beat (http://www.marketwatch.com/story/gap- shares-rise-after-earnings-and-sales-beat-2017-02-23).

Hewlett-Packard Enterprise (HPE) posted a 10% profit drop, and shares slid 6% in late trade. CEO Meg Whitman may be running out of excuses (http://www.marketwatch.com/story/whitmans-excuses-for-hewlett-packard-enterprise-earnings-are- not-enough-2017-02-23) to get the corporate tech provider back on a sound footing.

Nordstrom (JWN) shares could gain after the retailer beat earnings expectations (http://www.marketwatch.com/story/ nordstrom-shares-rise-after-retailer-beats-earnings-expectations-2017-02-23). Herbalife (HLF) issued a weak forecast alongside largely disappointing results (http://www.marketwatch.com/story/herbalife-issues-weak-forecast-touts-china- deal-2017-02-23).

A big advertising drop and China regulatory crackdown (http://www.marketwatch.com/story/baidu-profit-tumbles-after- big-drop-in-advertisers-2017-02-23) hit Baidu's (BIDU) profit.

The quote

"I think they're grand champions at manipulation of currency. So I haven't held back. We'll see what happens." -- Trump in an interview with Reuters. He touched on a bunch of topics (http://www.reuters.com/article/us-usa-trump- interview-highlights-idUSKBN1622RG), including the U.S. "being at the top of the pack" (http://www.marketwatch.com/ story/trump-us-will-be-at-the-top-of-the-pack-on-nukes-2017-02-24) on nukes.

Next week, we'll get more of the thoughts of President Trump when he addresses Congress on Tuesday.

Random reads

Lethal VX nerve agent (http://www.marketwatch.com/story/vx-nerve-agent-used-to-kill-kim-jong-nam-malaysia-says-2017- 02-23) was used to kill the half brother of the North Korean dictator.

FBI reportedly said no to a White House request to refute Trump-Russia reports (http://www.marketwatch.com/story/fbi- rejected-white-house-request-to-refute-trump-russia-stories-report-2017-02-23)

(http://www.marketwatch.com/story/fbi-rejected-white-house-request-to-refute-trump-russia-stories-report-2017-02- 23)The close correlation between the tooth fairy and U.S. stocks (http://www.marketwatch.com/story/the-generosity-of- americas-tooth-fairy-bizarrely-tracked-the-rise-in-stocks-last-year-2017-02-23)

(http://www.marketwatch.com/story/the-generosity-of-americas-tooth-fairy-bizarrely-tracked-the-rise-in-stocks-last- year-2017-02-23)Ruth Bader Ginsburg said these aren't "the best of times," (http://www.businessinsider.com/ruth-bader- ginsburg-trump-america-first-amendment-2017-2) but she's hopeful

50,000 new deposits (http://www.cnbc.com/2017/02/23/arctic-doomsday-seed-vault-receives-50000-new-deposits.html) in the Arctic "doomsday" seed vault

"Call me," says Caitlyn Jenner to Trump after his transgender move:

(https://www.youtube.com/embed/b9_PSvYM_-E)

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-Barbara Kollmeyer; 415-439-6400; [e-mail]


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02-24-170725ET
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