TODAY’S S&P 500 SET-UP – June 2, 2014
As we look at today's setup for the S&P 500, the range is 44 points or 1.85% downside to 1888 and 0.44% upside to 1932.
SECTOR PERFORMANCE
EQUITY SENTIMENT:
CREDIT/ECONOMIC MARKET LOOK:
- YIELD CURVE: 2.11 from 2.10
- VIX closed at 11.4 1 day percent change of -1.47%
MACRO DATA POINTS (Bloomberg Estimates):
- 9:45am: Markit US Mfg PMI, May final, est. 56.2 (prior 56.2)
- 10am: ISM Manufacturing, May, est. 55.5 (prior 54.9)
- 10am: Construction Spending, April, est. 0.7% (prior 0.2%)
- 11:00am: U.S. to announce plans for auction of 4W bills
- 11:30am: U.S. to sell $25b 3M, $23b 6M bills
GOVERNMENT:
- Obama’s deputies defend deal with Taliban that freed soldier
- Obama in Europe this week, with talks in Poland about Russia and Ukraine
- Supreme Court may issue orders
- 8:40am: Treasury Sec. Jack Lew, Undersecretary David Cohen speak at CSIS on department’s role in national security
- Washington Week Ahead
- U.S. ELECTION WRAP: GOP Obamacare Retreat; Romney in Iowa
WHAT TO WATCH:
- Det Norske buys Marathon’s Norwegian assets for $2.7b
- Dai-ichi Life said in talks on $4.9b Protective Life deal
- Obama said to propose deep cuts to power-plant emissions
- KKR liquidates equity hedge fund led by Ex-Goldman’s Howard
- ASCO winners & losers: Roche, Merck, Lilly, Clovis, AstraZeneca
- Icahn denies giving inside info in probe involving Mickelson
- "Malificent" casts spell, wins N.A. box office with $70m
- Europe manufacturing cools more than estimated
- Japan’s 1Q capital spending rises most since 2Q 2012
- China manufacturing gauge rises to highest in 5 months
- U.K. May manufacturing PMI 57 vs. 57.3 in April; est. 57
- Lewis Katz, co-owner of Philadelphia Inquirer, dies in crash
- New York Woolworth tower penthouse priced at record $110m
- Airline profit surge led by U.S. masks thin margins, IATA says
- Companies must file conflict mineral disclosures with SEC
- Apple Worldwide Developers Conf. begins, keynote 1pm
- China trades barbs with U.S., Japan on islands at forum
- Google said to spend $1b on satellites for Internet access: WSJ
- Shire lines up $5b in funding for NPS Pharma bid: Times
- Pacific Equity Partners may pull $1b SAI Global offer: Reuters
EARNINGS:
- Conn’s (CONN) 7am, $0.73
- Guidewire Software (GWRE) 4:05pm, $0.03
- Krispy Kreme Doughnuts (KKD) 4:02pm, $0.23
- Quiksilver (ZQK) 4:01pm, $(0.02)
COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)
- Obama Said to Seek Power-Plant Emissions Cuts Republicans Oppose
- WTI Rises From One-Week Low on China Factory Data; Brent Steady
- Hedge Funds Cut Bullish Gold Wagers Most This Year: Commodities
- Gold Falls to Four-Month Low as Advance in Stocks Curbs Demand
- Copper Advances Most in Two Weeks on China Factory Expansion
- Wheat Slides to Three-Month Low as U.S. Crop Prospects Improve
- Sugar Rises as Brazil Dryness Seen Cutting Surplus; Cocoa Drops
- Europe’s Gas Power Capacity Seen at Risk as Utilities Burn Coal
- Gas Speculators Least Bullish of ’14 as Prices Retreat: Energy
- Global Rubber Market Seen in Balance in 3-4 Years: Sri Trang
- Indian Steelmakers Restart Iron Ore Mines on New Permits
- Russia Gives Ukraine Leeway on Gas as Five Rebels Die in Luhansk
- EC Shale Gas Endorsement Diversifies EU Energy Supply: Bull Case
- KRG Crude Destined for U.S. Now Heads to Morocco: JBC, Tracking
CURRENCIES
GLOBAL PERFORMANCE
EUROPEAN MARKETS
ASIAN MARKETS
MIDDLE EAST
The Hedgeye Macro Team