TODAY’S S&P 500 SET-UP – August 20, 2014
As we look at today's setup for the S&P 500, the range is 35 points or 1.49% downside to 1952 and 0.27% upside to 1987.
SECTOR PERFORMANCE
EQUITY SENTIMENT:
CREDIT/ECONOMIC MARKET LOOK:
- YIELD CURVE: 1.97 from 1.97
- VIX closed at 12.21 1 day percent change of -0.89%
MACRO DATA POINTS (Bloomberg Estimates):
WHAT TO WATCH:
• Argentina to pay foreign-currency bonds locally
• GE to invest $3.5b in aircraft engine operations: Nikkei
• Samsung developing smartphone chip to replace Qualcomm: Maeil
• Chinese hackers use Heartbleed to enter Community Health
• Apple rises to record amid optimism around new products
• Citigroup said to weigh sale of Japan consumer bank unit
• U.K. FCA seen unlikely to cap fund manager pay
• AT&T seeks to offer faster high-speed Internet vs Google
• Walgreens CFO pressured to exit after forecast error: WSJ
• Dodgers TV blackout fuels unease over Comcast-Time Warner
• Elon Musk’s SpaceX says not raising private capital
• Softbank’s Son says considering next move after T-Mobile
• Amazon may start drone delivery in India: Economic Times
• Petsmart exploring options including possible sale
• U.S. Coast Guard responds to Duke Energy diesel spill in Ohio
ECONOMY:
• 7am: MBA Mortgage Applications, Aug. 15 (prior -2.7%)
• 10:30am: DOE Energy Inventories
• 2pm: Fed releases July FOMC minutes
GOVERNMENT:
- President Obama on vacation on Martha’s Vineyard
- Senate, House out on August recess
- 2pm: Brookings Institution discussion “Ukraine Crisis and Russia’s Place in the Intl Order”
- U.S. ELECTION WRAP: Reid on Mont., S.D.; Alaska; Obamacare
AM EARNINGS:
• Lowe’s (LOW) 6am, $1.03 - Preview
• Staples (SPLS) 6am, $0.12
• GasLog (GLOG) 6:02am, $0.11
• JM Smucker (SJM) 7am, $1.37
• Madison Square Garden (MSG) 7:30am, $0.18
• Target (TGT) 7:30am, $0.78 - Preview
• American Eagle Outfitters (AEO) 8am, $0.00 - Preview
• Eaton Vance (EV) 8:45am, $0.62
• Raven Industries (RAVN) 9am, $0.26
PM EARNINGS:
• Hain Celestial (HAIN) 4pm, $0.89
• L Brands (LB) 4pm, $0.62 - Preview
• Hewlett-Packard (HPQ) 4:05pm, $0.89
• Synopsys (SNPS) 4:05pm, $0.60
• Semtech (SMTC) 4:30pm, $0.39
COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)
- India Seen Passing China as World’s Biggest Cotton Producer
- European Gas Reverses Biggest Drop Since 2009 on Ukraine: Energy
- Putin Turns Poles Into Cider Lovers as Russia Food Ban Bites
- 3-D Printed Jets and Bicycles Spur Demand for Metal: Commodities
- Gold Little Changed Near 2-Week Low on Dollar as Platinum Falls
- China Port Seen as Economic Barometer Set for Record Supply
- Glencore Says Commodities Outlook from Copper to Zinc Improving
- Zinc Paces Metals Advance as Glencore Cites Tightening Market
- Cotton Crop in India Estimated at Near Record 39.6 Million Bales
- Operations at Mongolia’s Tavan Tolgoi Mine Halted, Macmahon Says
- Steel Rebar Falls to Record Low Before China PMI as Output Gains
- Fortescue CEO Says Co. Expects Iron Ore Price to ’Drift Up’
- Gabelli’s Bryan Tops Gold Funds as Miners Rally: Riskless Return
- Russian Grain Trader Beating Cargill to Olam as Exports Surge
CURRENCIES
GLOBAL PERFORMANCE
EUROPEAN MARKETS
ASIAN MARKETS
MIDDLE EAST
The Hedgeye Macro Team
