TODAY’S S&P 500 SET-UP – January 14, 2014
As we look at today's setup for the S&P 500, the range is 28 points or 1.03% downside to 1820 and 0.50% upside to 1848.
SECTOR PERFORMANCE
EQUITY SENTIMENT:
CREDIT/ECONOMIC MARKET LOOK:
- YIELD CURVE: 2.48 from 2.49
- VIX closed at 12.28 1 day percent change of -7.53%
MACRO DATA POINTS (Bloomberg Estimates):
- 7am: MBA Mortgage Applications, Jan. 10 (prior 2.6%)
- 8:30am: Empire Manufacturing, Jan., est. 3.5 (prior 0.98)
- 8:30am: PPI m/m, Dec., est. 0.4% (prior -0.1%)
- 9:15am: BoE’s Carney speaks in London
- 10:30am: DOE Energy Inventories
- 11am: Fed to purchase $4b-$5b in 2018-2019 sector
- 12:50pm: Fed’s Evans speaks in Coralville, Iowa
- 2pm: Fed releases Beige Book
- 5:45pm: Fed’s Lockhart speaks in Atlanta
GOVERNMENT:
- 10am: House Financial Services Cmte hearing on impact of Volcker Rule, including req’d divestiture of some collateralized debt obligations
- 10am: Sens. Ron Wyden, D-Ore.; Johnny Isakson, R-Ga.; Reps. Erik Paulsen, R-Minn.; Peter Welch, D-Vt., announce bill aimed at Medicare beneficiaries living with multiple chronic illnesses
- 10am: House Veterans Affairs Cmte hearing on VA sourcing of surgical implants, incl. body tissue, for use in former troops
- 10am: House Foreign Affairs Cmte hearing on South Sudan
- 10am: Senate Finance Cmte hearing on nomination of R. Gil Kerlikowske to be commissioner of U.S. Customs and Border Protection
- 1:05pm: Obama to discuss economy at Raleigh, N.C., event
- 2pm: Senate Banking panel holds hearing on regulating financial holding companies and commodities
WHAT TO WATCH:
- World Bank raises global growth forecasts for 2014
- Abu Dhabi fund, GIC said to invest in Time Warner HQ
- Volcker rule curbs on banks owning CDOs eased by regulators
- Senate bid to renew jobless benefits collapses amid sparring
- California bullet train may see funding shortfall: L.A. Times
- Deutsche Bank suspends FX trader in New York, Welt Reports
- AbbVie, Alexion slated to present at JPM Healthcare Conference
- EU reins in high-frequency traders, commodity speculators
- Laura Ashley sells stake in Moss Bros
- China Mobile IPhone pre-registrations reach about 1m
- German 2013 GDP growth, deficit miss est.
- China’s credit growth slows as leaders curb speculation
- Warrants for records said no burden as Obama readies NSA changes
EARNINGS:
- Bank of America (BAC) 7am, $0.27 - Preview
- Clarcor (CLC) Aft-Mkt, $0.70
- CSX (CSX) 4:03pm, $0.43
- Fastenal (FAST) 6:50am, $0.34 - Preview
- HB Fuller (FUL) 6:01pm, $0.75
- Kinder Morgan (KMI) 4:05pm, $0.34
- Plexus (PLXS) 4pm, $0.61
COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)
- Brent Crude Declines to Two-Month Low as Libya Output Recovers
- Libya’s First Oil Expansion in 10 Months Aiding Refiners: Energy
- Copper Falls as Chinese New-Credit Slump Fuels Demand Concern
- Cocoa Nears Three-Week High on European Processing; Coffee Drops
- Gold Declines on Outlook for Less Stimulus, Strengthening Dollar
- Corn Retreats as Argentine Crops May Benefit From Weekend Rain
- Zinc Was in Shortage in November, Study Group Figures Show
- Commodity Slump Spurs INTL FCStone Asia Growth as Banks Cut
- Coffee Farmers in Vietnam Curb Sales From Record Crop Before Tet
- Indonesia Mineral Export Ban Risk Additional Changes: Eurasia
- Braskem to Work With Siluria on Making Ethylene From Methane Gas
- South African Gold Mines Face Strike Notices Over Pay From AMCU
- EU Clears Way for Fracking With Voluntary Environmental Rules
- Barry Callebaut Says Africa Cocoa Deliveries Cut Global Shortage
CURRENCIES
GLOBAL PERFORMANCE
EUROPEAN MARKETS
ASIAN MARKETS
MIDDLE EAST
The Hedgeye Macro Team