TODAY’S S&P 500 SET-UP - December 7, 2010
As we look at today’s set up for the S&P 500, the range is 35 points or -1.89% downside to 1200 and 0.97% upside to 1235.
- Obama, GOP reach a deal on taxes by extending the Bush tax cuts for two years
- emerging market demand, Barron’s said
- AGL Resources, (AGL) and NICOR to combine in $8.6B transaction
- FT writes that oil is forecast to pass its current two-year high above $90 a barrel to beyond $100 – this would hinder economic recovery
- Barron’s reports that an Irish tax hike could hurt some U.S. software stocks. ADBE, VMW, MENT, MFE, SYMC and others are mentioned in the report
- William Conway said that Carlyle is gearing up for an IPO to boost buyout-fund capital, according to Bloomberg
- WikiLeaks founder, Julian Assange, was arrested in London
PERFORMANCE
- One day: Dow (0.17%), S&P (0.13%), Nasdaq +0.13%, Russell +0.59%
- Month-to-date: Dow +3.24%, S&P +3.61%, Nasdaq +3.87%, Russell +4.66%
- Quarter-to-date: Dow +5.32%, S&P +7.18%, Nasdaq +9.55%, Russell +12.53%
- Year-to-date: Dow +8.96%, S&P +9.69%, Nasdaq +14.36%, Russell +21.66%
- Sector Performance: Energy +0.26%, Tech +0.07%, Materials +0.02%, Consumer Discretionary (0.01%), Telecom (0.03%), Industrials (0.18%), Financials (0.22%), Consumer Staples (0.27%), Utilities (0.47%), and Healthcare (0.68%)
EQUITY SENTIMENT:
- ADVANCE/DECLINE LINE: -42 (-770)
- VOLUME: NYSE 803.64 (-11.38%)
- VIX: 18.02-7.12% YTD PERFORMANCE: -16.90%
- SPX PUT/CALL RATIO: 1.32 from 1.31 +0.37%
CREDIT/ECONOMIC MARKET LOOK:
- TED SPREAD: 17.77 -0.102 (-0.569%)
- 3-MONTH T-BILL YIELD: 0.15% +0.01%
- YIELD CURVE: 2.53 from 2.54
COMMODITY/GROWTH EXPECTATION:
- CRB: 317.29 +0.360%
- Oil: 88.92 -0.30%
- COPPER: 400.65 +0.19%
- GOLD: 1,414.90 +0.61%
CURRENCIES:
- EURO: 1.3297 -0.87%
- DOLLAR: 79.638 +0.33%
OVERSEAS MARKETS:
EUROPEAN MARKETS:
- Europe is trading up at the moment. News of the Bush-era tax cuts being extended is trumping sovereign debt concerns for now
- Irish budget vote takes place tomorrow. Passage of the vote is a requirement of the EU bailout
- Troubles continuing across the broader Eurozone but Merkel holding firm and rejecting the proposals for a bigger fund and Europe-wide bonds
- Tesco increased 2.2% as the retailer said that 3Q sales rose 8.8%, led by growth outside of the U.K.
- Unilever also gained on an upgrade
- U.K. Factory Production grew more than forecast in October. Output rose 0.6% from September. This was the strongest growth for seven months.
- Russia moved closer to WTO membership after signing an MOU with the EU that set the terms to resolve all EU-Russia bilateral issues.
ASIAN MARKTES:
- Markets ended mostly higher today following Obama extending the Bush tax cuts and Ireland prepared for a budget vote
- China Shanghai A Share finished up +0.65%
- Korea KOSPI 100 finished up +0.55%
- Japan Nikkei 225 finished down -0.26%
- Japanese stocks declined on fears that the yen will resume strengthening and hurt exports
- Australia left the cash rate unchanged at 4.75%, market gained +0.77%
- Bloomberg reports that speculation is mounting that China may raise rates this weekend
Howard Penney
Managing Director
