TODAY’S S&P 500 SET-UP - July 1, 2011
As we look at today’s set up for the S&P 500, the range is 27 points or -2.02% downside to 1294 and 0.03% upside to 1321.
SECTOR AND GLOBAL PERFORMANCE
EQUITY SENTIMENT:
- ADVANCE/DECLINE LINE: 1398 (+270)
- VOLUME: NYSE 996.05 (+9.10%)
- VIX: 16.52 -4.34% YTD PERFORMANCE: -6.93%
- SPX PUT/CALL RATIO: 1.38 from 1.40 (-1.77%)
CREDIT/ECONOMIC MARKET LOOK:
- TED SPREAD: 23.05
- 3-MONTH T-BILL YIELD: 0.03%
- 10-Year: 3.18 from 3.14
- YIELD CURVE: 2.73 from 2.67
MACRO DATA POINTS:
- 9:55 a.m.: UMichigan Confidence, June F, est. 72.0, prior 71.8
- 10 a.m.: Construction spending, est. 0.1%, prior 0.4%
- 10 a.m.: ISM Manufacturing, est. 52.0, prior 53.5
- 1 p.m.: Baker Hughes Rig Count
- 2 p.m.: USDA cattle, hog slaughter
WHAT TO WATCH:
- Questions about credibility of accuser in ex-IMF chief Strauss-Kahn’s case said to place it in jeopardy
- NBA becomes second U.S. sports league to lock out players
- Treasury Secretary Geithner’s potential departure from the administration would force President Obama to assemble a new economic team as the 2012 election looms, with jobs a top voter concern.
- Senate in session, House in recess
COMMODITY/GROWTH EXPECTATION
COMMODITY HEADLINES FROM BLOOMBERG:
- China May Buy U.S. Corn as Price Slumps 11% on Acreage: Chart of the Day
- Corn Extends Worst Monthly Loss Since 2008, Wheat Drops as Food Costs Ease
- Commodity-Futures Trade in China Plunges 30% as Rules Restrain Speculation
- Oil Drops on Signs of China, U.S. Slowdown; IEA and OPEC Supplies Increase
- Gold Falls to Six-Week Low Amid Reduced Concern Greece May Default on Debt
- Coffee Falls on Signs of Limited Frost Damage in Brazil; Cocoa Retreats
- Copper Erases Drop on London Metal Exchange, Trades at $9,445 a Metric Ton
- U.K. Crop Losses Narrow as Rain Last Month Follows Driest Spring on Record
- Rice Output in Indonesia May Climb on Increased Planting, Reducing Imports
- Lead-Battery Production in China Seen Dropping by Half on Pollution Rules
- Muddy Waters Is Looking at More ‘Suspicious’ Chinese Companies, Block Says
- Brent to Recover From Decline as Supply Boost Seen Failing: Energy Markets
- Philippine Investment Push Lures Sumitomo as Aquino Plans Roads, Airports
- Gold May Gain Next Week as Slowing Economies Stoke Demand, Survey Shows
CURRENCIES
EUROPEAN MARKETS
- European equity markets trade mixed.
- Jun final Manufacturing PMI; France 52.5 vs preliminary 52.5; Germany 54.6 vs preliminary 54.9
- EuroZone 52.0 vs preliminary 52.0
- UK Jun Manufacturing PMI 51.3 vs consensus 52.1, prior revised 52.0 from 52.1
ASIAN MARKETS
- Asian market are generally higher..
MIDDLE EAST
Howard Penney
Managing Director