THE HEDGEYE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP - June 27, 2011

 

Ahead of the likely sluggish income and spending numbers, futures are modestly higher. Asia-Pacific stock markets posted losses overnight except China (we are LONG) and Europe was higher in the early morning.  As we look at today’s set up for the S&P 500, the range is 20 points or -0.82% downside to 1258 and 0.75% upside to 1278.

 

SECTOR AND GLOBAL PERFORMANCE

 

THE HEDGEYE DAILY OUTLOOK - levels 627

 

THE HEDGEYE DAILY OUTLOOK - daily sector view

 

THE HEDGEYE DAILY OUTLOOK - global performance

 

 

EQUITY SENTIMENT:

  • ADVANCE/DECLINE LINE: -838 (-352)  
  • VOLUME: NYSE 1740.41 (+55.74%)
  • VIX:  21.10 +9.38% YTD PERFORMANCE: +18.87%
  • SPX PUT/CALL RATIO: 2.11 from 2.41 (-12.30%)

 

CREDIT/ECONOMIC MARKET LOOK:

  • TED SPREAD: 23.61
  • 3-MONTH T-BILL YIELD: 0.02%
  • 10-Year: 2.88 from 2.93
  • YIELD CURVE: 2.53 from 2.58 

 

MACRO DATA POINTS:

  • 8:30 a.m.: Personal income, est. 0.4%, prior 0.4%
  • 8:30 a.m.: Personal spending, est. 0.1%, prior 0.4%
  • 10:30 a.m.: Dallas Fed, est. (-3.2), prior (-7.4)
  • 11 a.m.: Fed’s Kocherlakota speaks on leverage in Montana, audience Q&A
  • 11 a.m.: Weekly export inspections (corn, wheat, soybeans)
  • 11:30 a.m.: U.S. to sell $27b 3-mo. bills, $24b 6-mo. bills
  • 1 p.m.: Fed’s Hoenig speaks in Washington, audience Q&A
  • 1 p.m.: U.S. to sell $35b in 2-yr notes
  • 4 p.m.: Crop conditions

WHAT TO WATCH:

  • Greek lawmakers begin 3-day debate on austerity package
  • “Cars 2” from Disney’s Pixar opened as the top film in U.S., Canadian theaters this weekend, collecting $68m in ticket sales
  • President Obama meets with Senate leaders to see if they can restart the deficit/debt talks that fell apart last week

COMMODITY/GROWTH EXPECTATION

 

THE HEDGEYE DAILY OUTLOOK - daily commodity view

 

 

COMMODITY HEADLINES FROM BLOOMBERG:

  • Longest Losing Streak Since 2008 Ending for Commodities as Futures Surge
  • Bread in Japan Becoming Costlier May Curb Purchasing Power, Slow Recovery
  • Commodities Tumble to Five-Month Low on Basel Rules, Greek Austerity Vote
  • Oil Slides on Outlook for Slower Demand as IEA May Release More Stockpiles
  • Copper Falls as Greece’s Debt Crisis May Curb Demand for Industrial Metals
  • Smithfield Foods’ Hunger for Bacon Makes Sara Lee Merger Target: Real M&A
  • Gold Pares Drop After Reaching 1-Month Low on Dollar’s Gains Against Euro
  • Cocoa Climbs as Purchasers Secure Mid-Crop Supplies; Sugar Prices Decline
  • Wheat, Corn Drop as Greek Debt Woes Cut Investor Appetite for Commodities
  • Food Crisis Cooperation ‘Doomed’ Unless Action Taken, Warns Kofi Annan
  • Shanghai Sea-Cargo Volume to Increase 10% Annually as Plants Move Inland
  • Speculators Cut Agriculture Bets as Improving Weather Eases Supply Concern
  • Copper-Alloy Product Output From Japan Climbs as Demand Begins To Recover

 

CURRENCIES

 

THE HEDGEYE DAILY OUTLOOK - daily currency view

 

 

EUROPEAN MARKETS

  • Europe is generally higher lead by Span (we are short) and Italy.

 

THE HEDGEYE DAILY OUTLOOK - euro performance

 

 

ASIAN MARKETS

  • Asian market are generally weaker (we are short Japan down -1.03%) and LONG China up +0.44%

 

THE HEDGEYE DAILY OUTLOOK - asia performance

 

 

MIDDLE EAST

 

THE HEDGEYE DAILY OUTLOOK - MIDEAST PERFORMANCE

 

Howard Penney

Managing Director


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