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
EQUITY SENTIMENT:
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
CURRENCIES
GLOBAL PERFORMANCE
EUROPEAN MARKETS
ASIAN MARKETS
MIDDLE EAST
The Hedgeye Macro Team