THE HEDGEYE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP – June 5, 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


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EQUITY SENTIMENT:


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CREDIT/ECONOMIC MARKET LOOK:

  • YIELD CURVE: 1.83 from 1.85
  • VIX closed at 16.27 1 day percent change of -0.06%

MACRO DATA POINTS (Bloomberg Estimates):

  • 7am: MBA Mortgage Applications, May 31 (prior -8.8%)
  • 8:15am: ADP Employment Report, May, est. 165k (prior 119k)
  • 8:30am: Nonfarm Productivity, 1Q final, est. 0.6% (prior 0.7%)
  • 8:30am: Unit Labor Costs, 1Q final, est. 0.5% (prior 0.5%)
  • 10am: Factory Orders, April, est. 1.5% (prior rev to -4.9%)
  • 10am: ISM Non-Manuf Composite, May, est. 53.5 (prior 53.1)
  • 10:30am: DoE Energy Inventories
  • 11am: Fed to purchase $1.25b-$1.75b in 2036-2043 sector
  • 2pm: Fed releases Beige Book

GOVERNMENT:

    • House Armed Svcs Cmte may vote on plan to buy 4 additional Littoral Combat Ships in fiscal year starting Oct. 1
    • 10am: SEC votes on proposal to require floating-share value for riskiest type of money-market mutual funds; rule would apply only to funds that buy corporate debt and cater to institutional clients
    • 1pm: Senate Indian Affairs Cmte holds roundtable on energy development on American Indian lands
    • 2pm: Bloomberg Government webinar on “The Outlook for Corporate Tax Reform,” w/ Bob Litan, dir. of research; Loren Duggan, dir. of legislative analysis; Patrick Driessen, taxation policy analyst
    • Missouri Republican Jason Smith wins special U.S. House election, keeping district w/ same party

WHAT TO WATCH

  • Samsung wins patent case against Apple at U.S. ITC
  • Goldman said to pledge $500m to Alibaba as IPO looms
  • Penn West Petroleum to cut jobs, div. as CEO steps down
  • Fed’s Fisher urges QE reduction seeing end to 30-yr bond rally
  • AIG casts doubt on completing ILFC sale to China investors
  • SEC to vote on money-market mutual fund rules
  • HSBC faces New York lawsuit over alleged foreclosure violations
  • AB InBev judge refuses to block Modelo buyout in antitrust case
  • CFO optimism in U.S. rises to Four-Yr High
  • Apple was ready to “take or Leave” e-books, Penguin CEO says
  • Abe pledges legislative campaign to loosen Japan business rules
  • Australia’s economy expanded less than forecast in 1Q
  • Sprint voters should abstain on SoftBank bid, Glass Lewis Says
  • Euro-area 1Q GDP unrevised at down 0.2% in qtr
  • U.K. May services growth rose to highest since March 2012
  • Eurozone April retail sales down 0.5% M/m; est. down 0.2% M/m

EARNINGS:

    • Jos A Bank Clothiers (JOSB) 6am, $0.34
    • Cyberonics (CYBX) 7am, $0.43
    • Brown-Forman (BF/B) 8am, $0.46
    • Laurentian Bank of Canada (LB CN) 8:54am, C$1.24 - Preview
    • Saputo (SAP CN) 12:38pm, $0.73
    • Ascena Retail Group (ASNA) 4pm, $0.30
    • VeriFone Systems (PAY) 4:01pm, $0.47
    • Francesca’s Holdings (FRAN) 4:01pm, $0.26
    • Greif (GEF) 4:07pm, $0.69
    • AMERCO (UHAL) 4:16pm, $1.23
    • Dominion Diamond (DDC CN) 5pm, $0.05

COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)

  • Taurus Shuts Gold Fund on Investor Redemptions After Price Slump
  • Alcoa Junk Downgrade Is Rare Trauma for Dow Stocks: Commodities
  • Copper Swings Between Advances and Declines Amid Supply Concern
  • WTI Trades Near Four-Day High on Signs of Reduced U.S. Supply
  • Counting on Gold to Navigate a Currency Crash? Don’t Delay
  • Czarnikow Sees Sugar Surplus Falling 62% as Beet Output Declines
  • Sugar Gains With Czarnikow Seeing Smaller Surplus; Cocoa Climbs
  • U.K. Natural Gas Rises From 5-Month Low as Exports Boost Demand
  • Port Hedland Ships Record Iron Ore as China Boosts Demand
  • BP’s Oil Spill Deal Sours as Claims Add Billions to Cost: Energy
  • Shanghai Gold Exchange Volume Falls 44% vs. April Peak: BI Chart
  • Asia Naphtha Crack Narrows; BP Buys Fuel Cargoes: Oil Products
  • Adnoc Narrows Murban Premium; Refinery Margins Climb: Asia Crude
  • Commodities Daybook: Taurus Shuts Gold Fund on Redemptions
  • LME to Start Clearing in 2014 After 25 Years With LCH.Clearnet

 

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CURRENCIES


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GLOBAL PERFORMANCE

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EUROPEAN MARKETS


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ASIAN MARKETS


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MIDDLE EAST


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The Hedgeye Macro Team