TODAY’S S&P 500 SET-UP - September 20, 2011
As we look at today’s set up for the S&P 500, the range is 41 points or -1.42% downside to 1187 and 1.99% upside to 1228.
SECTOR AND GLOBAL PERFORMANCE
EQUITY SENTIMENT:
- ADVANCE/DECLINE LINE: -1647 (+53)
- VOLUME: NYSE 908.4 (-49.9%)
- VIX: 32.73 +5.7% YTD PERFORMANCE: +84.39%
- SPX PUT/CALL RATIO: 2.73 from 1.87 (+46%)
CREDIT/ECONOMIC MARKET LOOK:
- TED SPREAD: 35.25
- 3-MONTH T-BILL YIELD: 0.01%
- 10-Year: 1.98 from 1.95
- YIELD CURVE: 1.82 from 1.80
MACRO DATA POINTS (Bloomberg Estimates):
- FOMC begins 2-day rates meeting, decision tomorrow
- 8:30 a.m.: Housing starts, est. 590k (-2.3% M/m), prior 604k
- 8:30 a.m.: Building permits, est. 590k (-1.8% M/m), prior 597k
- 8:55 a.m.: Redbook weekly sales
- 11:30 a.m.: U.S. to sell $30b 4-wk, $25b 52-wk bills
- 4:30 p.m.: API inventories
WHAT TO WATCH:
- Greece will hold another call with its main creditors today after a “productive’’ round of talks yesterday aimed at staving off default
- Express Scripts to tell Congress in subcommittee hearing its $29.1b bid for Medco would reduce drug costs, preserve “highly competitive” marketplace
- IATA raises its 2011 forecast for global airline profits by 73%
- Eight offshore banks are under federal grand jury investigation for facilitating tax evasion by U.S. citizens
- AT&T was sued by Cellular South in an effort to block T- Mobile acquisition
- Italy debt rating cut by S&P to A on weaker growth outlook; two-year Treasury drops to record low
- UBS board to meet in Singapore this week following disclosure of $2.3b loss from unauthorized trading: 2 people with knowledge of situation
- U.S. said to be probing trades made before S&P cut U.S. rating in August, WSJ says
- FDA briefing docs due for Sept. 22 advisory panel on New York Blood Center’s umbilical cord blood BLA
- Tyco units may attract interest from UTX, Honeywell, Johnson Controls: Bernstein
- GM-UAW contract presented to union locals
COMMODITY/GROWTH EXPECTATION
MOST POPULAR COMMODITY HEADLINES FROM BLOOMBERG:
- Cattle Seen at Record $1.36 a Pound After Cull: Commodities
- Oil Rises on Equity Markets’ Advance, Speculation of Supply Risk
- Copper Rises From Nine-Month Low as Rio Sticks to Demand Outlook
- Teekay Profit Booms on LNG Shipping Demand: Freight Markets
- Gold to Top $2,000 This Year on ‘Confidence Crisis,’ Survey Says
- Corn, Soybeans Advance as Adverse U.S. Weather May Hurt Crops
- Coffee Climbs on Speculation La Nina May Hurt Crops; Cocoa Rises
- Fertilizer Safer Than Gold to Uralkali’s Lenders: Russia Credit
- Qaddafi Wheat Cargo Helped Sustain Libyan Rebellion’s Stronghold
- Australia Cuts Commodity Sales Outlook 1.6% on Lower Prices
- Food-Inflation Concerns Will Persist, FAO’s Abbassian Says
- Sugar Output in India Seen at Four-Year High as Planting Gains
- Chevron Victory Blocking $18 Billion Verdict Thrown Out in U.S.
- Egypt to Boost Wheat Imports to Avert Unrest, El Attal Says
- Gold Gains in London as European Debt Concern Spurs Demand
- Australia Increases Sugar-Output Estimate as Crop Recovers
- Oil Stockpiles Fall to Eight-Month Low in Survey: Energy Markets
CURRENCIES
EUROPEAN MARKETS
ASIAN MARKETS
MIDDLE EAST
Howard Penney
Managing Director