10/12/12 08:22 AM EDT

THE HEDGEYE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP – October 12, 2012

As we look at today’s set up for the S&P 500, the range is 20 points or -0.48% downside to 1426 and 0.92% upside to 1446.

SECTOR AND GLOBAL PERFORMANCE

EQUITY SENTIMENT:

ADVANCE/DECLINE LINE: on 10/11 NYSE 909.00
- Increase versus the prior day’s trading of -737
VOLUME: on 10/11 NYSE 646.68
- Increase versus prior day’s trading of 9.45%
VIX: as of 10/11 was at 15.59
- Decrease versus most recent day’s trading of -4.30%
- Year-to-date decrease of -33.38%
SPX PUT/CALL RATIO: as of 10/11 closed at 1.72
- Up from the day prior at 1.67

CREDIT/ECONOMIC MARKET LOOK:

TED SPREAD: as of this morning 24.36
3-MONTH T-BILL YIELD: as of this morning 0.10%
10-Year: as of this morning 1.69%

Increase from prior day’s trading of 1.67%

YIELD CURVE: as of this morning 1.42

Up from prior day’s trading at 1.41

MACRO DATA POINTS (Bloomberg Estimates)

8:30am: Producer Price Index M/m, Sept. est. 0.8%
8:30am: PPI Ex Food & Energy M/m, Sept. est. 0.2%
9:55am: University of Michigan Consumer Sentiment, Oct. preliminary, est. 78.0 (prior 78.3)
11am: Fed to buy $1.75n-$2.25b notes due 2/15/2036-8/15/2020
12:35pm: Fed’s Lacker speaks in Charlottesville, Va.
1pm: Baker Hughes rig count

GOVERNMENT:

Dodd-Frank rules take effect that require companies to begin tallying derivatives trades to determine whether they cross $8b threshold for being designated swap dealers subject to heightened capital and collateral standards; CFTC also will require companies to tally foreign-exchange swaps, forwards
Interior Secretary Ken Salazar, Senate Majority Leader Harry Reid, D-Nev., make announcement on renewable energy and public lands, 1:30pm
Education Secretary Duncan answers Twitter questions about federal student aid, tools available to help students, families make informed decisions about financing higher education, 4pm

WHAT TO WATCH:

Telefonica agreed to sell its Atento call-center division to Bain Capital, with enterprise value of EU1.04b, including debt
WellPoint reorganizes in interim CEO Cannon’s 1st major move
TPG withdraws A$694m offer for Billabong as talks end
Softbank shares fell as operator said it’s in talks to invest in Sprint Nextel, said to be seeking control
S&P put Softbank’s long-term outlook on creditwatch negative, citing announcement on Sprint Nextel talks
Kraft said to be putting its Breakstone’s sour cream, cottage cheese business up for sale, may be worth ~$400m
Gary Gensler, chairman of CFTC, said he’d be willing to serve 2nd term as head of the agency
Carlyle given another month to consider making Chemring bid
Family that controls Champion Technologies said to be seeking sale of the closely held company
Nasdaq, setting up derivatives trading system in London, will seek more than 10% market share in its first year of operation
JPMorgan expects investment-banking fees from U.S.-listed Chinese cos. to surge this year as they step up acquisitions
Pfizer appealed judge’s order that CEO Read testify in person at federal trial on claims against anti-smoking drug Chantix
Samsung Electronics won bid to continue selling newest Galaxy Nexus smartphone in U.S. during appeal
Apollo Global, Oaktree Capital said to have rejected Nine Entertainment’s debt restructuring proposal, countered by offering funds managed by Goldman a smaller stake in the co.
Honeywell expects to boost aerospace sales in Asia by 7% a year, double the pace in U.S.
VMware said partnership with Cisco will change after its $1.26b acquisition of Nicira
Answers Corp., which lost bid to buy About.com from New York Times in Aug., has other plans to grow through acquisitions
Morgan Stanley execs said to have told partner in Rhinebridge structured investment vehicle that mortgages underlying SIV may cause it to fail
Best Buy plans to match Amazon pricing in holiday season: WSJ
Presidential Debate, China GDP: Week Ahead Oct. 13-20