THE HEDGEYE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP - December 31, 2010

 

As we look at today’s set up for the S&P 500, the range is 11 points or -0.31% downside to 1254 and 0.57% upside to 1265.   Equity futures are little changed to fair value in the last trading session of the year. On Thursday, US equities closed slightly lower which was only the fourth down day this month for the S&P 500.

 

OTHER DATA AND NEWS EVENTS TODAY:

  • Kforce (KFRC) said it started a stock buyback plan, effective Jan. 6 through Feb. 11
  • Nektar Therapeutics (NKTR) said CEO Bharatt Chowrira will leave co. Jan. 3, with a $600k one-time severance payment, as well as monthly payments
  • Old Dominion Freight Line (ODFL) said COO John Yowell died

PERFORMANCE:

  • One day: Dow (0.14%), S&P (0.15%), Nasdaq (0.15%), Russell (0.07%)
  • Last Week: Dow +0.72%, S&P +0.28%, Nasdaq +0.21%, Russell +0.34%
  • Month-to-date: Dow +5.12%, S&P +6.55%, Nasdaq +6.59%, Russell +8.63%
  • Quarter-to-date: Dow +7.25%, S&P +10.22%, Nasdaq +12.43%, Russell +16.8%
  • Year-to-date: Dow +10.95%, S&P +12.8%, Nasdaq +17.36%, Russell +26.28%
  • Sector Performance mixed (1 sectors up,78 down and 1 flat) - Energy +0.09%, Materials flat, Consumer Discretionary (0.19%), Consumer Staples (0.17%), Industrials (0.17%), Utilities (0.16%), Tech (0.24%), Healthcare (0.31%), and Financials (0.35%) 

 EQUITY SENTIMENT:

  • ADVANCE/DECLINE LINE: 27 (-720)  
  • VOLUME: NYSE 508.02 (-2.32%)
  • VIX:  17.52 +1.39% YTD PERFORMANCE: -19.19%
  • SPX PUT/CALL RATIO: 2.31 from 1.74 (+33.20%)  

CREDIT/ECONOMIC MARKET LOOK:


Treasuries were weaker with the curve more or less flat.

  • TED SPREAD: 19.94 0.406 (2.078%)
  • 3-MONTH T-BILL YIELD: 0.12% -0.01%  
  • YIELD CURVE: 2.72 from 2.71

COMMODITY/GROWTH EXPECTATION:

  • CRB: 327.11 -1.09%
  • Oil: 89.84 -1.40% -  Trading down 0.22% in the AM
  • Oil Heads For Highest Annual Close Since 2007 as Commodity Demand Recovers  
  • COPPER: 442.00 +1.18% - Trading up +1.32% in the AM
  • Copper Advances to Record on Speculation Supply Shortage Poised to Worsen
  • GOLD: 1,405.05 -0.49% - Trading up +0.54% in the AM
  • Gold Poised for Tenth Annual Gain as Investors Seek Inflation Protection

OTHER COMMODITY NEWS:

  • Commodities Beat Stocks, Bonds, Dollar in 2010 as All Asset Prices Advance
  • Gold's Rally May Pause Near Record on Bollinger Bands: Technical Analysis
  • India Winter Oilseed Output May Gain as High Prices Spur Mustard Planting
  • Gold May Increase on Investor Demand for Wealth Protection, Survey Shows
  • Corn Heads for Best Year Since 2006 on Global Production Deficit Concerns
  • Vietnam Coffee Crop May Drop Next Season on Smaller Beans, Executives Say
  • Raw Sugar May Increase Next Week on Global Supply Concern, Survey Shows
  • GDF Said to Study Initial Offer for Oil, Gas Production Unit to Lower Debt
  • Russia Starts Oil Pipeline to China as Putin Attempts to Diversify Exports
  • Gillard to Boost Aid for Flood-Stricken Queensland as Thousands Evacuated
  • Peacekeepers in Ivory Coast May Use Force if Attacked, United Nations Says

CURRENCIES:

  • EURO: 1.3263 +0.56% - Trading up +0.93% in the AM
  • DOLLAR: 79.521 -0.34% Trading down -0.56% in the AM (7 straight down days)

EUROPEAN MARKETS:

  • European Markets: FTSE 100: (0.76%); DAX: closed; CAC 40: (0.69%) (as of 06:45 EST)
  • European markets have moved in a narrow range on the final day of trading in 2010.
  • Indices edged higher on the open before reversing gains on very thin volumes in a shortened trading session.
  • Markets in Belgium, France, Greece, Ireland, Netherlands, Portugal and UK are open with trading ending between 07:30-08:15ET.
  • FTSE100 and CAC currently trade off session lows. Six sectors trade higher led by basic resources and personal & household products, whilst healthcare and food & beverage lead fallers.
  • UK Nationwide Dec House Prices +0.4% y/y vs consensus (0.4%) and prior +0.4%

ASIAN MARKTES:

  • Asian Markets: Nikkei (closed); Hang Seng +0.2%; Shanghai Composite +1.8%
  • Asian markets that were open finished mixed in unsurprisingly thin trade, with few actually trading full days.
  • China rose 1.76%, with coal producers leading the market higher when Shanxi Xishan Coal & Electricity Power, which jumped 6%, said it will raise prices tomorrow.
  • Financials led Taiwan higher +0.73% after yesterday’s rate increase, and construction shares also showed healthy gains.
  • Hong Kong was flat in a half day’s trade.
  • Australia, which closed early, was bit by a broad-based decline. Banks fell on worries that the European debt crisis will raise their offshore debt costs. BHP Billiton fell 1% on speculation it will make an offer for Anadarko Petroleum, and other miners fell on concern about the effects of flooding.
  • Japan, South Korea, Thailand, and Indonesia were closed for New Year’s Eve.

 

 THE HEDGEYE DAILY OUTLOOK - setup


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