Replies to post #585537 on $Stock*Shop*Charts*News*Option$

[EZ2]

Brace for the bull run to stay in great shape even as the health bill troubles traders
MARKETWATCH 7:27 AM ET 3/23/2017
Critical information for the U.S. trading day

If the GOP can't replace Obamacare, can it deliver anything?

That's the question strategists are tackling, against a backdrop of markets that have seen dramatic moves in anticipation of Trumpcare, tax cuts, deregulation and more.

Chasing the clouds away, Brown Brothers Harriman's Marc Chandler suggests it'll be OK.

President Trump and House Speaker Ryan "can compromise on much" to get a health-care bill passed before the weekend, Chandler writes at his Marc to Market blog (http://www.marctomarket.com/2017/03/some-thoughts-about-recent-price- action.html). They can then herald it as a success, which could help out stocks and the dollar, he says.

Barclays strategists also have a soothing bedside manner, making for a bullish call of the day.

"We have been asked if the prospect of fiscal stimulus fades if the American Health Care Act (AHCA) is stuck in Congress. We do not believe so," write Ajay Rajadhyaksha and Michael Gavin.

"In such a scenario, the ruling party might instead redouble efforts to get at least one of its legislative priorities -- tax reform -- through in 2017, in part with an eye to the 2018 mid-term elections."

Investors are almost certain to flee from riskier assets like stocks at some point, but that "appears unlikely over the next three to six months," say Rajadhyaksha and Gavin.

High valuations might crimp medium-term returns and amplify selloffs, but the rally probably won't unravel until there is a big deterioration in either the global economy or the overall financial backdrop, the Barclays duo says. And that will happen in late June at the earliest, by their reckoning.

Risk-free assets (i.e. Treasuries) are "still very rich by historical standards," they note. While U.S. stocks (SPY) are not as alluring as they once were, don't abandon them, but instead lead with European stocks (VGK) , the strategists add.

Key market gauges

Futures for the Dow , S&P 500 and Nasdaq-100 are little changed. That's after the Dow , S&P and Nasdaq Composite all basically stabilized yesterday (http://www.marketwatch.com/story/selloff-in-us-stocks-set-to-pick-up-again-as-trump- trade-dwindles-2017-03-22) following Tuesday's sharp drop. See the Market Snapshot column for the latest action.

The quote

"An act of terrorism tried to silence our democracy but today we meet as normal. ... We are not afraid and our resolve will never waver in the face of terrorism." -- British Prime Minister Theresa May has been speaking (http:// uk.businessinsider.com/theresa-may-westminster-terrorist-attacks-commons-speech-2017-3?r=US&IR=T) in Parliament this morning after yesterday's attack that left four people dead, including the attacker and a police officer, as well as 40 injured.

Read more:8 arrested in 6 raids as police probe London terror attack (http://www.marketwatch.com/story/seven-arrested- in-six-raids-as-police-probe-london-terror-attack-2017-03-23)

The chart

(

Relative Momentum for $XLV rolling over again while still inside improving quadrant on #RRGchart https://t.co/GKTxGhghFz pic.twitter.com/vfa5jHcCBE

— Julius de Kempenaer | RRG® (@RRGresearch) March 23, 2017

)

The big health care ETF (XLV) is getting attention, as some traders recommend avoiding the sector (http:// seekingalpha.com/article/4057174-avoiding-healthcare-service-stocks-right-now), while others think the fund has found a bottom (https://www.benzinga.com/markets/options/17/03/9204216/scott-bauers-healthcare-etf-trade).

Eric Scott Hunsader -- the man who wants to upend the world of high-frequency trading (http://www.marketwatch.com/ story/this-man-wants-to-upend-the-world-of-high-frequency-trading-2016-02-02) -- has been saying the ETF suffered a " flash crash" this week:

(

A big picture Nanex chart of the $XLV flash crash yesterday: pic.twitter.com/9fTYVKXHaE

— Eric Scott Hunsader (@nanexllc) March 22, 2017

)

The stat

26 -- At least that many House Republicans have said they oppose their party's health-care bill, according to an count early Thursday (http://abcnews.go.com/Health/wireStory/gop-health-bill-brink-hours-house-showdown-vote-46319909) from the Associated Press. The number was in constant flux amid eleventh-hour lobbying, and the bill would be defeated if 23 Republicans join all Democrats in voting "no," the AP reported.

Check out:Late-night dealmaking raises GOP's hopes of approving health-care bill (http://www.marketwatch.com/story/ gop-scrambles-for-votes-on-eve-of-vote-on-health-care-bill-2017-03-22)

And see:Koch-backed network vows to fund Republicans who reject health bill (http://www.marketwatch.com/story/koch- backed-network-vows-to-fund-republicans-who-reject-health-bill-2017-03-22)

Also read:Here's what happens to tax reform if the health bill passes -- or doesn't (http://www.marketwatch.com/story/ heres-what-happens-to-tax-reform-if-the-health-bill-passes-or-doesnt-2017-03-22)

The economy

Don't forget about the Fed today. Chairwoman Janet Yellen is due to speak at 8:45 a.m. Eastern Time, the Minneapolis Fed's Neel Kashkari is on tap for lunchtime, and the Dallas Fed's Rob Kaplan is due to speak after the market's close.

We're also getting jobless claims before the opening bell, followed by new-home sales once trading is underway.

See:

The buzz

It's been sad times lately for many retail stocks (XRT) , but discounter Five Below (FIVE) is leaping premarket after announcing an earnings beat and more store openings (http://www.marketwatch.com/story/five-below-shares-rally-on- companys-earnings-beat-new-store-openings-2017-03-22) late yesterday.

Do you want a Camry that runs Windows? Microsoft (MSFT) and Toyota (7203.TO) have inked a patent deal (http:// www.marketwatch.com/story/microsoft-toyota-sign-patent-deal-potentially-for-connected-cars-2017-03-22), potentially for connected cars. Meanwhile, Apple (AAPL) reportedly has acquired (http://www.marketwatch.com/story/apple-acquires- automation-app-workflow-report-2017-03-22) automation app Workflow.

Activist shareholder Elliott Management is pushing () Dutch paint and chemicals giant Akzo Nobel to talk with acquisitive American rival PPG (PPG) .

Conagra (CAG) is among the companies on the earnings docket before the open.

Random reads

What's on fire with Sweet 16 games on tap today? The name Jalen (https://www.wsj.com/articles/its-not-your- imagination-there-are-loads-of-jalens-in-college-basketball-1490197872).

Team USA just won its first World Baseball Classic title, beating Puerto Rico 8-0 (http://mlb.nbcsports.com/2017/03/ 23/u-s-blanks-puerto-rico-8-0-to-win-first-world-baseball-classic-title/?utm_network=twitter&utm_post=6896023&utm_ source=TW%20%40NBCSports&utm_tags=srm%5Bbaseball%5D):

(

Get your eagle on. #WBC2017 pic.twitter.com/yeqoeHhOcO

— MLB GIFS (@MLBGIFs) March 23, 2017

)

Need to Know starts early and is updated until the opening bell, butto get it delivered once to your email box. Be sure to check the Need to Know item. The emailed version will be sent out at about 7:30 a.m. Eastern.

Or Follow MarketWatch onTwitter (https://twitter.com/marketwatch)orFacebook (https://www.facebook.com/marketwatch).

Andto get the Friday email highlighting 10 of the best MarketWatch articles of the week.

-Victor Reklaitis; 415-439-6400; [e-mail]


(END) Dow Jones Newswires
03-23-170727ET
Copyright (c) 2017 Dow Jones & Company, Inc.