THE HEDGEYE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP – May 28, 2014


As we look at today's setup for the S&P 500, the range is 36 points or 1.25% downside to 1888 and 0.63% upside to 1924.                                                            

                                                                   

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: 2.13 from 2.17
  • VIX closed at 11.51 1 day percent change of 1.32%

 

MACRO DATA POINTS (Bloomberg Estimates):

 

  • 7am: MBA Mortgage Applications (prior 0.9%)
  • 7:45am/8:55am: ICSC/Redbook weekly sales
  • 4:30pm: API weekly oil inventories
  • 9:30pm: BOJ’s Shirai speaks and holds press conference

 

GOVERNMENT:

    • House in session; Senate out
    • 10am: Northrop Grumman holds a briefing on state of global logistics in aerospace, defense industries
    • 10am: FDIC Chairman Martin Gruenberg holds briefing on bank and thrift industry 1Q earnings
    • 11am: President Obama to give commencement address at West Point
    • 2pm: House Veterans Affairs Cmte seeks testimony from three VA officials about Phoenix VA Health Care System
    • John Ratcliffe defeats Rep. Hall in Texas’ 4th district

 

 

WHAT TO WATCH:

  • GE’s Immelt strengthened offer for Alstom in Hollande meeting
  • GE said to pledge 1,000 new jobs in France
  • RBS to eliminate hundreds of U.S. jobs ahead of Fed’s new rules
  • Nestle to buy skincare rights from Valeant for $1.4b
  • Valeant hosts investor call; watch for change in Allergan bid
  • Citigroup’s head of centralized risk trading said to leave bank
  • Amazon says not optimistic on dispute with publisher Hachette
  • Hachette hoping to solve Amazon dispute in “few weeks”: CEO
  • China banks’ bad-debt ratio seen climbing to most since 2009
  • Microsoft touts new opportunities, unveils Skype translation
  • Google unveils company-designed driverless vehicle prototypes
  • Morgan Stanley sues convicted ex-broker to recoup legal fees
  • GM poised for more recalls as 2 million vehicles probed
  • President Obama to give commencement address at West Point
  • Credit Agricole said to accuse EU of bias in rate-rigging probe
  • Exchanges can ruin high-frequency trading benefits, study finds
  • Sands China falls as investor moves stake to parent company
  • Credit Suisse’s Dougan says he won’t quit over fine: L’Hebdo
  • Euro-area economic confidence climbs more than expected in May
  • German unemployment unexpectedly rises for 1st time in 6 months
  • Ukraine prolongs anti-rebel operation after dozens killed

 

EARNINGS:

    • Bank of Montreal (BMO CN) 7:30am, C$1.52 - Preview
    • Brown Shoe (BWS) 7am, $0.31
    • Chico’s (CHS) 7:31am, $0.28
    • Copart (CPRT) 4:45pm, $0.48
    • Cracker Barrel (CBRL) 7am, $1.22
    • DSW (DSW) 7am, $0.48
    • EnerSys (ENS) 4:01pm, $1.18
    • Michael Kors (KORS) 7am, $0.68 - Preview
    • Palo Alto Networks (PANW) 4:03pm, $0.10

 

COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)

 

  • Corn Extends Decline to 12-Week Low as U.S. Planting Accelerates
  • Brent Gains for First Day in Three on Libya, Ukraine; WTI Steady
  • Gold Sinking as ETP Assets Drop to Lowest Since ’09: Commodities
  • Palladium Climbs to Highest Since 2011 as Gold Near 15-Week Low
  • Copper Trades Near 11-Week High Amid Advancing Global Equities
  • Robusta Coffee Falls After USDA’s Vietnam Forecast; Sugar Climbs
  • Steel Rebar Drops With Iron Ore as China’s Steel Supplies Climb
  • Iraq Oil Revival Stalls Again as Violence Pinches Growth: Energy
  • El Nino Risk Seen Spurring Rice Importers to Advance Purchases
  • Ukraine Gas-Price Risk Premium Remains for Europe as Gap Widens
  • Gold Premiums in India Seen at 10-Month Low as Curbs Eased
  • Japanese Lawmakers to Lobby Abe for Russian Gas Pipeline
  • Weather, LNG Exports Pace Near-, Long-Term Gas Demand: Bull Case
  • West Australian Court Dismisses Organic Farmer Action in GM Case

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 


Neurofinance: The Psychology Behind When To Sell A Bull Market

"Most momentum investors stay invested too long, under-reacting and holding tight after truly bad news finally arrives to break the trend," writes MarketPsych's Richard Peterson.

read more

Energy Stocks: Time to Buy the Dip? | $XLE

What the heck is happening in the Energy sector (XLE)? Energy stocks have trailed the S&P 500 by a whopping 15% in 2017. Before you buy the dip, here's what you need to know.

read more

Cartoon of the Day: Hard-Headed Bears

How's this for "hard data"? So far, 107 of 497 S&P 500 companies have reported aggregate sales and earnings growth of 4.4% and 13.2% respectively.

read more

Premium insight

McCullough [Uncensored]: When People Say ‘Everyone is Bullish, That’s Bulls@#t’

“You wonder why the performance of the hedge fund indices is so horrendous,” says Hedgeye CEO Keith McCullough, “they’re all doing the same thing, after the market moves. You shouldn’t be paid for that.”

read more

SECTOR SPOTLIGHT Replay | Healthcare Analyst Tom Tobin Today at 2:30PM ET

Tune in to this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

read more

Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

read more

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more