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 44 points or 1.76% downside to 1894 and 0.52% upside to 1938.
SECTOR PERFORMANCE
EQUITY SENTIMENT:
CREDIT/ECONOMIC MARKET LOOK:
- YIELD CURVE: 2.20 from 2.21
- VIX closed at 12.08 1 day percent change of 1.77%
MACRO DATA POINTS (Bloomberg Estimates):
- 7am: Bank of England seen maintaining 0.50% bank rate
- 7:30am: Challenger Job Cuts y/y, May (prior 5.7%)
- 7:30am: RBC Consumer Outlook Index, June (prior 50.1)
- 7:45am: ECB seen cutting benchmark interest rate to 0.1% from 0.25%, marginal lending facility to 0.6% from 0.75%, deposit facility rate to -0.1% from 0%
- 8:30am: ECB’s Draghi holds press conference, releases macroeconomic forecasts
- 8:30am: Init Jobless Claims, May 31, est. 310k (prior 300k)
- 9:45am: Bloomberg Consumer Comfort, June 1 (prior 33.3)
- 10am: Freddie Mac mortgage rates
- 10:30am: EIA natural-gas storage change
- 12pm: Household Change in Net Worth, 1Q (prior $2.954t)
- 1:30pm: Fed’s Kocherlakota speaks in Boston
GOVERNMENT:
- President Obama attends G-7 meetings in Brussels, meets with U.K. Prime Minister David Cameron in afternoon, travels to Paris for dinner with French President Francois Hollande
- Sec. of State Kerry meets with Russian FM Lavrov in Paris
- Senate in session; House meets in pro forma session
- U.S. Chemical Safety Board releases investigation reports on Deepwater Horizon disaster in Gulf of Mexico
- 9:15am: Senate Commerce, Science and Transportation panel holds hearing on “Preserving Public Safety and Network Reliability in the IP Transition”
- 9:50am: Obama, Cameron hold joint press conference
- 10am: Senate Foreign Relations Cmte hearing on events in Ukraine
- U.S. ELECTION WRAP: Competitive Race Outlook; Miss.; Calif. 31
WHAT TO WATCH:
- GM’s Barra prepares to release details of Valukas review
- Draghi preparing negative rates seen piquing demand for QE
- ECB decision day guide
- May U.S. Retail Sales seen “okay,” may slow vs April
- Medtronic said to evaluate takeover offer for Smith & Nephew
- Sprint, T-Mobile said near accord on price, termination fee
- Amazon said to be ready to unveil smartphone to vie with Apple
- BP, Anadarko may face billions in fines after oil spill ruling
- Microsoft faces China backlash to Windows as U.S. spat escalates
- Hollande says big BNP penalty could hit Europe bank stability
- Eurozone April retail sales up 0.4% m/m; est. unchanged m/m
- Adelson says new recruit could be player in succession at Sands
- J. Crew says declining operating results may trigger impairment
- Turner Networks said to consider departing Fox official for role
- “Too many people on trading floors” may force layoffs: WSJ
- Google said to seek streaming music service purchase: NY Post
- Dave & Buster’s considers IPO after sale fails: Reuters
EARNINGS:
- Analogic (ALOG) 4:15pm, $0.94
- Canadian Western Bank (CWB CN) 8:30am, C$0.61 - Preview
- Ciena (CIEN) 7am, $0.13 - Preview
- Cooper (COO) 4:01pm, $1.60
- Diamond Foods (DMND) 4:05pm, $0.17
- JM Smucker (SJM) 6:30am, $1.17
- Joy Global (JOY) 6am, $0.71 - Preview
- Navistar (NAV) 7:02am, ($1.27) - Preview
- Saputo (SAP CN) 12:46pm, C$0.75
- Seachange (SEAC) 4:02pm, ($0.03)
- Thor Industries (THO) 4:15pm, $1.07
- Transcontinental (TCL/A CN) 8:05am, C$0.43
- Vail Resorts (MTN) 4pm, $2.92
- Vera Bradley (VRA) 8am, $0.13
- VeriFone Systems (PAY) 4:01pm, $0.33
COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)
- EU Wheat Crop at 6-Year High Compounds World Glut as Prices Drop
- WTI Falls a Second Day on U.S. Fuel Inventories; Brent Declines
- ETF Securities Joins LME in Proposing Silver Fixing Replacement
- Storms Follow Bugs to Florida as Orange Crop Slumps: Commodities
- Iron Ore Miners in China Seen Shuttering After Price Tumbles 30%
- Gold Trades Near Four-Month Low Before ECB Decision, U.S. Data
- Port Hedland Tug Deckhands Say Teekay Talks Were Constructive
- Wheat Rebounds From Three-Month Low as Decline May Revive Demand
- Aluminum Rebounds as Copper Slips Before ECB Policy Announcement
- ICE Coffee Extends Drop as Dryness Seen Aiding Crop; Cocoa Falls
- Qingdao Port Said to Investigate Volume of Metals in Warehouses
- EU Gas-Market Push Strengthens as Oil-Link Widest Since 2009
- Gold Leaves Investors Bored as Volatility Drops to 14-Month Low
- Widodo to Keep Indonesia Ore Ban, Limit Plantation Expansion
CURRENCIES
GLOBAL PERFORMANCE
EUROPEAN MARKETS
ASIAN MARKETS
MIDDLE EAST
The Hedgeye Macro Team
