TODAY’S S&P 500 SET-UP - February 22, 2011
Libya remains a key focal point in capital markets as Gaddafi digs his heels in and the prices of oil and gold gain. Asian equities extended yesterday’s losses and U.S. futures have declined from Friday’s close. As we look at today’s set up for the S&P 500, the range is 16 points or -0.97% downside to 1330 and 0.22% upside to 1346.
MACRO DATA POINTS:
- 09:00 a.m.: S&P/CaseShiller Home Price Index, December. 20 City MoM% SA est. -0.50%, prior -0.54%.
- 10:00 a.m.: Conference Board Consumer Confidence Index, February. Est. +65.0, prior 60.6.
- 10:00 a.m.: Richmond Fed Manufacturing Index, February. Est. 18, prior 18.
- State Street Investor Confidence Index
- 11:30 a.m.: 4-Week Bill Announcement
- 11:30 a.m.: 3-Month Bill Auction
- 11:30 a.m.: 6-Month Bill Auction
- 01:00 p.m.: Minneapolis Federal Reserve President, Narayana Kocherlakota, speaks in Pierre, South Dakota.
EARNINGS/WHAT TO WATCH:
- The regime of Muammar Qaddafi appears to be unraveling as diplomats and soldiers alike desert the leader following brutal crackdowns on protesters. Libya holds the largest oil reserves in Africa.
- This past week saw the earnings beat rate slip 100 bps to 69% from the week prior.
- Moody’s changed Japan’s credit rating outlook to negative, prompted by “heightened concern that economic and fiscal policies may not prove strong enough to achieve the government’s deficit reduction target and contain the inexorable rise in debt”.
PERFORMANCE:
We have 8 of 9 sectors positive on TRADE and 9 of 9 sectors positive on TREND.
- One day (Friday): Dow +0.59%, S&P +0.19%, Nasdaq +0.08%, Russell 2000 +0.10%
- Month-to-date: Dow +4.203%, S&P +4.42%, Nasdaq +4.96%, Russell +6.86%
- Quarter/Year-to-date: Dow +7.03%, S&P +6.79%, Nasdaq +6.83%, Russell +6.53%
- Sector Performance: - Energy +0.42%, Materials +-1.11%, Consumer Disc +0.27%, Tech -0.15%, Financials +0.22%, Healthcare +0.24%, Industrials +0.28%, Consumer Spls +0.27%, Utilities +0.22%.
EQUITY SENTIMENT:
- ADVANCE/DECLINE LINE: 458 (-293)
- VOLUME: NYSE 1162.45 (+31.78%)
- VIX: 16.43 -0.96% YTD PERFORMANCE: -7.44%
- SPX PUT/CALL RATIO: 2.65 from 1.18
CREDIT/ECONOMIC MARKET LOOK:
- TED SPREAD: 22.25
- 3-MONTH T-BILL YIELD: 0.09%
- 10-Year: 3.52 from 3.59
COMMODITY/GROWTH EXPECTATION:
- CRB: 342.20 +0.06%; YTD: +2.67%
- Oil: 92.50 +7.31% YTD: +0.30%
- COPPER: 440.05 -2.12%; YTD: -0.88%
- GOLD: 1,397.15 -0.66%; YTD: -1.66%
COMMODITY HEADLINES:
- Corn Futures Advance to Highest Level Since July 2008 on Increased Demand
- Wool Supply From World’s Biggest Exporter To Be Tight, Shippers Group Says
- Rubber Futures in Tokyo Decline as Much as 2.6% to 511.3 Yen Per Kilogram
- Corn, Soybeans May Rise on Demand for U.S. Supplies, According to Survey
- Vietnam Coffee Price Rises to Highest Since 1995, newspaper says
- Fonterra Raises Forecast Milk Payout to Farmers on Higher Dairy Prices
- Surging Food Costs, Unrest in Middle East May Drive Increase in Stockpiles
- Coffee Exports From Indonesia May Be Held Level by Rainfall, Shippers Say
- Sugar Production in India to Climb Next Year, Aiding Exports, Group Says
- China Plans to Sell 150,000 Tons of Sugar From State Reserves on February 28th
- Lenzing of Austria Said to Plan $684 Million Share Offering by Late April
- IOI Corp. Leads Malaysian Plantation Stocks Lower as Palm Oil Futures Drop.
CURRENCIES:
- EURO: 1.3666 +0.26%
- DOLLAR: 77.835 +0.20%
EUROPEAN MARKETS:
- FTSE 100: (0.97%); DAX: (0.31%); CAC 40: (1.47%)
- Mersh Says ECB May Warn Next Week of Rising Inflation Risks in Euro Area
- Barclays, Santander Are "Driven Out" of Russia as State-Owned Banks Expand
- Papandreou Urges Merkel to Support Debt Buybacks, Changes to Rescue Fund
- BOE Officials May GIve Signals on Momentum Toward Interest-Rate Increase
ASIAN MARKTES:
- Nikkei: (1.78%); Hang Seng: (2.11%); Shanghai Composite: (-2.62%)
- Oil, Bonds Jump as Stocks, Futures Drop on Libya; Kiwi Weakens After Quake
- China Said to Order Banks to Assign Greater Risk to Local-Government Loans
- Japan Debt Outlook Lowered by Moody’s on ‘Inexorable’ Debt
- Honda Cutys Number of Directors, Echoing Toyota's Management Reorganization
Howard Penney
Managing Director