TODAY’S S&P 500 SET-UP - April 26, 2011
Europe continues to be more right leaning on policy than America; a Bloomberg story says ECB “must solidly anchor inflation expectations.” As we look at today’s set up for the S&P 500, the range is 21 points or -1.14% downside to 1320 and 0.43% upside to 1341.
SECTOR AND GLOBAL PERFORMANCE
The Financials remain the only sector broken on both TRADE and TREND.
EQUITY SENTIMENT:
- ADVANCE/DECLINE LINE: -259 (-1211)
- VOLUME: NYSE 697.93 (-14.13%)
- VIX: 15.77 +7.35% YTD PERFORMANCE: -11.15%
- SPX PUT/CALL RATIO: 1.30 from 1.60 (-18.48%)
CREDIT/ECONOMIC MARKET LOOK:
- TED SPREAD: 21.29 -1.521 (-6.669%
- 3-MONTH T-BILL YIELD: 0.07% +0.01%
- 10-Year: 3.39 from 3.42
- YIELD CURVE: 2.72 from 2.74
MACRO DATA POINTS:
- 9 a.m. S&P Case-Schiller, est. (-3.30% Y/y)
- 10 a.m. Consumer Confidence, est. 64.5, prior 63.4
- 10 a.m. Richmond Fed Index, est. 20, prior 20
- 11:30 a.m.: U.S. to sell $30b in 4-week bills
- 1 p.m.: U.S. to sell $35b in 2-yr notes
- 4:30 p.m.: API inventories
WHAT TO WATCH:
- Peru was the worst performing global market overnight after former Peruvian military rebel Ollanta Humala opened a six-point lead in a presidential poll before a June 5 runoff vote. Concerns are he will strengthen ties with Venezuelan President Hugo Chavez.
- FDA says it will not appeal ruling that it must regulate ecigarettes as tobacco products, not drug-delivery devices - WSJ
- Tokyo Financial Exchange considering connecting its computer network with NYSE Euronext's - NQN
- YouTube to launch movie-on-demand service charging users to stream - The Wrap
- China raised capital adequacy ratios for its five largest banks in March - Bloomberg
- US, China to resume strategic, economic dialog 9-10-May in Washington - wires, citing US Treasury statement
- Yahoo Board Now More Open to Offers: WSJ All Things Digital
COMMODITY/GROWTH EXPECTATION
COMMODITY HEADLINES FROM BLOOMBERG:
- Platinum Funds Expanding Fastest in Metals as Lonmin Seen Doubling Profit
- Copper, Zinc Demand in Japan to Climb on Evacuee Housing, Power Generation
- China May Buy More Sugar to Curb Fastest Inflation in Almost Three Years
- Commodities Snap Four-Day Winning Streak on Fed Speculation, China Credit
- Copper Drops Most in Seven Weeks on Concern China Tightening to Sap Demand
- Oil Supply Climbs in Survey on Forecast for Higher Imports: Energy Markets
- Gold, Silver Decline From Records as Investors Seek Cash to Protect Gains
- Wheat, Corn Drop as Some Investors Sell Following Rally; Soybeans Decline
- Sugar Falls as India May Allow Further Exports; Coffee Drops, Cocoa Gains
- Copper-Alloy Product Output in Japan Declines 3.7% After March 11 Disaster
- Investor ‘Euphoria’ to Drive India Silver Demand This Year, Exchange Says
- Rubber in Tokyo Reaches One-Month Low on China Rate Concern, Car Output
CURRENCIES
EUROPEAN MARKETS
- European markets are mixed and quiet with the holiday shortened week.
- Greek 2010 budget gap wider than estimated as euro-area debt hits record
- Indebted Spanish states pay Portugal-sized bond penalty rate: euro credit
- Trichet says policy makers must avert any jump in inflation expectations
- Dollar falls on speculation fed may keep supporting economy after qe ends
- Greece, Ireland, Portugal yields hit records on default concern
ASIA PACIFIC MARKTES:
- Asian Stocks Drop as Earnings Disappoint; Australia, Malaysia and Pakistan were higher on the day. Japan and China were the two worst performing markets
- China Said to Raise Capital-Adequacy Ratios for Biggest Banks to Curb Risk
MIDDLE EAST
Howard Penney
Managing Director