THE HEDGEYE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP - July 6, 2011

As we look at today’s set up for the S&P 500, the range is 35 points or -1.71% downside to 1315 and 0.91% upside to 1350.

SECTOR AND GLOBAL PERFORMANCE


THE HEDGEYE DAILY OUTLOOK - levels 76

THE HEDGEYE DAILY OUTLOOK - daily sector view

THE HEDGEYE DAILY OUTLOOK - global performance

 

EQUITY SENTIMENT:

  • ADVANCE/DECLINE LINE: -39 (-2012)  
  • VOLUME: NYSE 906.95 (+4.84%)
  • VIX:  16.06 +4.84% YTD PERFORMANCE: -9.52%
  • SPX PUT/CALL RATIO: 1.87 from 1.30 (+43.98%)

 

CREDIT/ECONOMIC MARKET LOOK:

  • TED SPREAD: 23.56
  • 3-MONTH T-BILL YIELD: 0.02%
  • 10-Year: 3.16 from 3.22
  • YIELD CURVE: 2.72 from 2.72 

 

MACRO DATA POINTS:

  • 7 a.m.: MBA Mortgage, prior (-2.7%)
  • 7:30 a.m.: Challenger job cuts, prior (-4.3%)
  • 7:45 a.m./8:55 a.m.: ICSC/Redbook Weekly Sales
  • 10 a.m.: ISM non-manufacturing: est. 53.7, prior 54.6
  • 11:30 a.m.: U.S. to sell $28b 4-wk bills
  • 4:30 p.m.: API inventories  

WHAT TO WATCH:

  • President Obama will take questions today in what White House officials are calling his first Twitter town hall
  • IMF Managing Director Lagarde to hold news conference in Washington at 9:30 a.m.
  • Greek banks are willing to roll over their government bonds as part of a European Union aid plan, Finance Minister Evangelos Venizelos said; debt-holders meet in Paris today
  • Allen & Co. conference continues in Sun Valley; watch for developments on Hulu talks
  • Facebook to make announcement; reports from TechCrunch, others have indicated it’s a video-chat partnership with Skype

COMMODITY/GROWTH EXPECTATION

THE HEDGEYE DAILY OUTLOOK - daily commodity view

 

COMMODITY HEADLINES FROM BLOOMBERG:

  • Rice Futures May Help Tokyo Grain Exchange Break Even After Run of Losses
  • Crude Oil Declines as Portuguese Debt Downgrade Sparks Demand Concern
  • Wheat Drops as Warmer Weather May Aid Spring Crop Prospects; Rice Gains
  • Coffee Falls for a Fourth Day as Frost Concern Eases; Sugar Prices Slide
  • Cotton Poised for Further Declines on Fibonacci Levels: Technical Analysis
  • Copper May Drop, Risking Longest Winning Streak of 2011, on Debt Crisis
  • Gold May Climb for Third Day as European Debt-Crisis Concern Spurs Demand
  • U.S. Farmland Boom May Peak in 2011 After Five-Year Surge, Rabobank Says
  • Oil Supply Falls Fifth Week in Survey on Refining, Imports: Energy Markets
  • Kodak Default Odds Reach 74% After License Suit Delays: Corporate Finance
  • BASF Said to Consider Ending Genetically Modified Crop Research in Germany
  • Coal of Africa Climbs Most Since 2008 in Johannesburg on Project Approval
  • Australia Ends Month-Long Suspension of Live Cattle Shipments to Indonesia
  • Oil Tanker Rentals Seen Sinking to the Lowest Since 1997: Freight Markets

CURRENCIES

THE HEDGEYE DAILY OUTLOOK - daily currency view

EUROPEAN MARKETS

  • EUROPE: markets fall after 7 days of gains.
  • Moody’s downgraded Portugal’s credit rating to junk on Tuesday
  • Spain and Italy this morn -both markets down hard and broken TRENDs, while Germany continues to look great.
  • Germany May industrial orders +1.8% m/m vs consensus (0.5%) and prior revised +2.9% from +2.8%
  • UK June Halifax house prices +1.2% m/m vs consensus +0.0% and prior +0.1%

THE HEDGEYE DAILY OUTLOOK - euro markets

ASIAN MARKETS

  • ASIA: looks better and better by the day with both the KOSPI and Sensex breaking out above Hedgeye’s immediate-term TRADE lines

THE HEDGEYE DAILY OUTLOOK - asia performance

MIDDLE EAST

THE HEDGEYE DAILY OUTLOOK - MIDEAST PERFORMANCE

Howard Penney

Managing Director