TODAY’S S&P 500 SET-UP – June 4, 2014
As we look at today's setup for the S&P 500, the range is 43 points or 1.57% downside to 1894 and 0.66% upside to 1937.
SECTOR PERFORMANCE
EQUITY SENTIMENT:
CREDIT/ECONOMIC MARKET LOOK:
- YIELD CURVE: 2.19 from 2.20
- VIX closed at 11.87 1 day percent change of 2.50%
MACRO DATA POINTS (Bloomberg Estimates):
- 7am: MBA Mortgage Applications, May 30 (prior -1.2%)
- 8:15am: ADP Employment Change, May, est. 210k (prior 220k)
- 8:30am: Trade Balance, April, est. -$40.8b (prior -$40.4b)
- 8:30am: Nonfarm Productivity, 1Q final, est. -3.0% (pr -1.7%)
- 9:45am: Markit US Services PMI, May final (prior 58.4)
- 10am: ISM Non-Manufacturing, May, est. 55.5 (prior 55.2)
- 10am: Bank of Canada interest rate decision (prior 1%)
- 10:30am: DOE Energy Inventories
- 2pm: Federal Reserve issues Beige Book
GOVERNMENT:
- President Obama attends G-7 Summit in Brussels
- Senate in session; House out
- 10am: Senate Environment and Public Works Cmte hears from Nuclear Regulatory Commission Chairman Allison Macfarlane, 4 commissioners on implementation of Fukushima task force recommendations
- 10am: Senate Banking Cmte hearing on student loan servicing
- Elections
- Ernst wins GOP primary in Iowa, avoiding nominating convention
- Republican Chabot advances in Calif.’s 31st District race
WHAT TO WATCH:
- Dai-ichi Life to buy U.S. Protective for about $5.7b
- Lenovo, IBM said to seek extension in U.S. review of deal
- Markit seeks to raise $1.14b in U.S. initial offering
- Euro-region recovery in services output supports job creation
- Draghi said poised to keep rate-cut option even after June move
- U.K. services growth keeps eco. booming as hiring strengthens
- Australia GDP growth beats economists estimate
- Telesat sellers said trying to span value gap on $7b deal
- U.S. to review rules covering songwriter fees paid by Pandora
- S&P loses bid to move state ratings lawsuits to federal court
- Comcast to encrypt emails after Google raises issue: WSJ
EARNINGS:
- Brown-Forman (BF/B) 7:30am, $0.58
- Five Below (FIVE) 4:01pm, $0.06
- Greif (GEF) 4:06pm, $0.61
- Hovnanian (HOV) 9:15am, $0.03
- Laurentian Bank of Canada (LB CN) 8:40am, C$1.23 - Preview
- Leidos (LDOS) 6am, $0.54
- PVH (PVH) 4:02pm, $1.49
- Verint Systems (VRNT) 4:05pm, $0.55
COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)
- China Considers Offshore Yuan Gold Trade in Shanghai Trade Zone
- WTI Gains for Second Day as U.S. Stockpiles Shrink; Brent Rises
- Nespresso Falls Prey to Mining Cuts as China Cools: Commodities
- Iron Ore Cargoes at Record as Pilbara Mines Export Socks Off
- Copper Declines the Most in Seven Weeks on Strengthening Dollar
- Gold Trades Near Four-Month Low as Investors Weigh Dollar Gain
- Coffee Enters Bear Market as Brazil Sees Smaller Crop Loss
- Arabica Coffee Drops for 4th Session in New York; Sugar Falls
- Palm Rebounds as Decline to Seven-Month Low Seen Spurring Demand
- Steel Rebar Trades Near Record Low as Demand May Fall in Summer
- Buffett’s $26 Billion Power Bet in West Seen Paying Off: Energy
- Nickel Rally Gives BHP to Anglo Chance to Dump Mines: Real M&A
- China Gets Gas Bargain as Russia Hit by EU Sanctions: Bull Case
- Copper Backwardation Seen by Macquarie Narrowing Amid Probe
CURRENCIES
GLOBAL PERFORMANCE
EUROPEAN MARKETS
ASIAN MARKETS
MIDDLE EAST
The Hedgeye Macro Team