TODAY’S S&P 500 SET-UP - October 28, 2010
As we look at today’s set up for the S&P 500, the range is 24 points or -1.22% downside to 1168 and 0.81% upside to 1192. Equity futures are trading above fair value in the wake of Wednesday's session which saw the S&P 500’s 5-day winning streak end.
Focus today will be further corporate earnings and weekly jobless claims.
- Akamai Technologies (AKAM) 3Q profit, sales beat est.
- Allstate (ALL) 3Q EPS, rev. missed ests.
- Cavium Networks (CAVM) 3Q EPS, rev. beat ests.
- Energy XXI Bermuda (EXXI) offers 9.5m shares of common stock, $200m convertible preferred stock.
- Express Scripts (ESRX) sees 2010, 2011 EPS inline or above ests, 3Q rev. misses ests.
- Las Vegas Sands (LVS US) sees 2011 Ebitda >$3b, 3Q EPS, rev. beat ests.
- Norfolk Southern (NSC) 3Q EPS beat ests.
- Skechers U.S.A. (SKX) said 4Q, 2011 sales will increase. 3Q rev. missed est.
- Sourcefire (FIRE) forecast 4Q EPS, rev. below ests.
- Symantec (SYMC): Forecast 3Q sales above est.
- TriQuint Semiconductor (TQNT) forecast 4Q adj. EPS in-line with ests.
- Visa (V) 4Q adj. EPS in-line with ests., sees FY2011 rev. growth 11%-15%
- One day: Dow (0.39%), S&P (0.27%), Nasdaq +0.24%, Russell 2000 (0.38%)
- Month/Quarter-to-date: Dow +3.14%, S&P +3.61%, Nasdaq +5.68%, Russell +4.15%
- Year-to-date: Dow +6.70%, S&P +6.04%, Nasdaq +10.32%, Russell +12.61%
- Sector Performance: Materials (0.92%), Industrials (0.74%), Energy (0.42%), Healthcare (0.61%), Consumer Disc (0.62%), Consumer Spls (0.52%), Utilities (0.41%), Financials +0.07%, Tech +0.29%
- ADVANCE/DECLINE LINE: -946 (-707)
- VOLUME: NYSE: 1022.31 (+5.77%)
- MARKET LEADING/LAGGING STOCKS YESTERDAY: Broadcom +11.66%, Devry +7.04% and Prologis +6.41%/Sprint -9.85%, Molex -7.67% and Unitedhealth -4.37%.
- VIX: 20.71 +2.42% - YTD PERFORMANCE: (-4.47%)
- SPX PUT/CALL RATIO: 2.15 from 1.97 +9.15%
CREDIT/ECONOMIC MARKET LOOK:
- TED SPREAD: 16.24 0.406 (2.564%)
- 3-MONTH T-BILL YIELD: 0.14%
- YIELD CURVE: 2.35 from 2.27
- CRB: 299.14 -0.71%
- Oil: 81.94 -0.74% - BULLISH
- COPPER: 377.55 -2.42% - OVERBOUGHT
- GOLD: 1,322.55 -1.23% - BULLISH
- EURO: 1.3771 -0.67% - BULLISH
- DOLLAR: 78.149 +0.57% - BEARISH
- FTSE 100: +1.128%; DAX +0.86%; CAC 40 +0.91%
- Risk appetite was in evidence again early on following successive falls as a weaker dollar encouraged selective buying.
- Mining, Retail and Technology names were the main gainers across the continent with a number of better than expected earnings adding to the improved mood among the continent's investment community.
- Germany Oct unemployment rate +7.5% vs cons +7.4%
- Nikkei (0.22%); Hang Seng +0.20%; Shanghai Composite (0.15%)
- Markets closed mixed-to-little changed despite Wall Street’s decline.
- Tokyo recouped some of its earlier losses but closed in the red following the results of a Bank of Japan meeting while in Hong Kong Bank of China rose on beating expectations.
- Australia was lifted by strong results for ANZ Bank.
- Insurers weighed on the Shanghai index
- Bank of Japan keeps o/n call rate target unch at 0-0.1%. Sep retail sales +1.2% y/y. Dept-store comps (5%), convenience-store comps +12.2%