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TODAY’S S&P 500 SET-UP – June 4, 2013


As we look at today's setup for the S&P 500, the range is 21 points or 0.64% downside to 1630 and 0.64% upside to 1651.              

SECTOR PERFORMANCE


THE HEDGEYE DAILY OUTLOOK - 1

THE HEDGEYE DAILY OUTLOOK - 2

EQUITY SENTIMENT:


THE HEDGEYE DAILY OUTLOOK - 10


CREDIT/ECONOMIC MARKET LOOK:

  • YIELD CURVE: 1.83 from 1.83
  • VIX closed at 16.28 1 day percent change of -0.12%

MACRO DATA POINTS (Bloomberg Estimates):

  • 7:45am/8:55am: ICSC/Redbook weekly retail sales
  • 8:30am: Trade Balance, April, est. -$41.0b (prior -$38.8b)
  • 9:45am: ISM New York, May, est. 55 (prior 58.3)
  • 10am: IBD/TIPP Econ. Optimism, June, est. 50 (prior 45.1)
  • 11am: Fed to buy $2.75b-$3.5b notes in 2020-2023 sector
  • 11:30am: U.S. to sell 4W bills
  • 12:30pm: Fed’s Raskin speaks on employment in Washington
  • 1:30pm: Fed’s George speaks on economy in New Mexico
  • 4:30pm: Baker Hughes rig count
  • 8pm: Fed’s Fisher speaks on monetary policy in Toronto

GOVERNMENT:

    • Brookings Inst holds webcast w/ IMF Managing Director Christine Lagarde on global economic outlook. 12:15pm
    • OECD Intl Tax Conf., w/ Treasury’s Mike McDonald speaking on investment climate in developing countries, IRS’ Michael Danilack delivers keynote, 8:30am
    • Roosevelt Inst holds conf. on political agenda, approaches to jobs emergency, w/ Sen. Tom Harkin, D-Iowa, Fed Governor Sarah Bloom Raskin, Rep. Jan Schakowsky, D-Ill., 8:30am
    • House Nuclear Cleanup Caucus holds briefing on Energy Dept’s clean-up program at Idaho Natl Laboratory, 4pm
    • House Ways and Means Cmte holds hearing on IRS targeting of groups seeking tax exempt status. 1100 Longworth. 10am
    • SIFMA, Finl Markets Assoc and Clearing House hold Prudential Bank Regulation Conf. Speakers include Sen. Mike Crapo, 11:20am
    • FDIC meets to consider rule on definition for which non-banks would be subject to agency’s Orderly Resolution Authority in event of collapse, 10am
    • House Energy & Commerce Cmte panel holds hearing on home builders, w/ Louisiana-Pacific CEO Curt Stevens, 10am
    • Former Treasury Sec. Larry Summers testifies before Senate Budget Cmte on fiscal, economic effects of austerity, 10:30am
    • FHA Commissioner Carol Galante; HUD IG David Montoya testify before Senate Appropriations panel on the FHA, 2:30pm
    • House Education and Workforce Cmte hears from Sebelius on HHS budget, 10am
    • Senate Banking Cmte holds hearing on Iran sanctions, w/ Treasury Undersecretary David Cohen, 10am
    • Software and Information Industry Assn holds discussion on patent litigation, w/ House Judiciary Chairman Bob Goodlatte, R-Va, 12pm
    • OSTP Dir. John Holdren testifies before House Cmte on Science, Space and Tech about Obama administration’s proposed consolidation, re-organization of fed. science, technology, engineering, and mathematics (STEM) programs, 2pm
    • Senate Commerce, Science and Transportation panel holds hearing on wireless communications, 2:30pm
    • Google.org VP Matthew Stepka testifies before House Homeland Security panel on emergency response, 10am
    • National Transportation Safety Board considers safety study on single-unit truck accidents, 9:30am
    • Natl Capital Planning Commission holds public mtg on changes to height building limits in D.C., 6:30pm

WHAT TO WATCH

  • Microsoft CEO Ballmer said to be working on broad restructuring
  • General Motors to replace Heinz in S&P 500
  • Apple said to shift ad focus to support music-streaming service
  • AB InBev with Constellation seeks dismissal of antitrust suit
  • Dell trims CEO’s pay 14% as performance slips ahead of buyout
  • Icahn planning proposal for Dell to pay div.: N.Y. Post
  • Royalty Pharma takeover of Elan temporarily blocked by judge
  • Smithfield investor Continental Grain supports Chinese takeover
  • Scor to acquire Generali Reinsurance unit for $750m
  • Fox Broadcasting on appeal seeks to stop Dish’s AutoHop
  • Ackman reaping 3-fold gain will shrink Canadian Pacific stake
  • Australia’s central bank said still has room to cut benchmark interest rate
  • Euro-area April producer prices unexpectedly drop Y/y
  • U.K. construction unexpectedly resumes expansion last month

EARNINGS:

    • Dollar General (DG) 7am, $0.71, see preview
    • Bob Evans (BOBE) 4pm, $0.64
    • SHFL Entertainment (SHFL) 4pm, $0.20
    • Mattress Firm Holding (MFRM) 4:01pm, $0.36
    • NCI Building (NCS) 4:01pm, $(0.18)
    • Analogic (ALOG) 4:15pm, $0.84

COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)

  • Man Says Commodities Divergence Increasing Supply-Demand Role
  • Wheat Bear Market Worsens as U.S. Farms Lose Share: Commodities
  • Copper Rises on Supply Concern as Second-Biggest Mine Stays Shut
  • Rubber Gains From One-Month Low as U.S. Auto Sales Beat Estimate
  • Gold Falls in London as Equity Strength Curbs Investor Demand
  • Corn Falls as Planting Progress Eases Concerns of Reduced Acres
  • Ship Rates Rally Seen in Chinese Drive for Cleaner Coal: Freight
  • U.S. Wheat May Decline as Rogue Strain Spurs Concern, UN Says
  • Iron Ore Plunge Seen as Catalyst for Second-Half Freight Rallies
  • European Copper Premium Said to Increase in Past Month on Supply
  • Palm Oil Drops as Demand From India Seen Slowing on Weak Rupee
  • Crude Supply Falls From 82-Year High in Survey: Energy Markets
  • Oil-Price Assessors Say Post-Libor Rules Will Harm Markets
  • Commodities Daybook: Wheat Bear Market Worsens on Global Supply
  • WTI Drops After Biggest Gain in a Month on Fuel Supply Forecast

THE HEDGEYE DAILY OUTLOOK - 5

 

CURRENCIES


THE HEDGEYE DAILY OUTLOOK - 6

GLOBAL PERFORMANCE

THE HEDGEYE DAILY OUTLOOK - 3

THE HEDGEYE DAILY OUTLOOK - 4

EUROPEAN MARKETS


THE HEDGEYE DAILY OUTLOOK - 7

ASIAN MARKETS


THE HEDGEYE DAILY OUTLOOK - 8

MIDDLE EAST


THE HEDGEYE DAILY OUTLOOK - 9

The Hedgeye Macro Team