TODAY’S S&P 500 SET-UP – October 20, 2014
As we look at today's setup for the S&P 500, the range is 70 points or 3.01% downside to 1830 and 0.70% upside to 1900.
SECTOR PERFORMANCE
EQUITY SENTIMENT:
CREDIT/ECONOMIC MARKET LOOK:
- YIELD CURVE: 1.83 from 1.82
- VIX closed at 21.99 1 day percent change of -12.74%
MACRO DATA POINTS (Bloomberg Estimates):
- 10am: Fed Governor Jerome Powell speaks on community banking in online forum
- 11am: U.S. to announce plans for auction of 4W bills
- 11:30am: U.S. to sell $24b 3M bills, $30b 6M bills
GOVERNMENT:
- Senate, House out of session
- FEC filing deadline for candidates, some Pacs, parties for Sept
- 8am: NY Fed meeting on reforming culture, behavior in financial services; speakers include Sir David Walker at Barclays, UBS’s Axel Weber, JPMorgan’s Lee Raymond, Fed’s Daniel Tarullo, Morgan Stanley’s James Gorman
- 1pm: Financial Services Roundtable, FBI, Secret Service conf. on cybersecurity
- 2pm: FHFA Director Melvin Watt, HUD Secretary Julian Castro speak at Mortgage Bankers Assn conf.
- 4:30pm: Freddie CEO Donald Layton, Fannie CEO Timothy Mayopoulos speak
WHAT TO WATCH:
- IBM Agrees to Pay Globalfoundries $1.5 Billion to Take Chip Unit
- Investors Plan $2.2b Bid for Adidas’s Reebok, WSJ Reports
- Yahoo’s Mayer Faces Crucial Earnings Call Amid Investor Pressure
- CEO Mayer Said to Refresh Turnaround Plan; Seek M&A: WSJ
- Texas Ebola Cases Had Possible Contact With 300 People in U.S.
- Spain Ebola Patient May Be Free of Virus After Negative Test
- Cleco: Investor Group to Buy Cleco for $55.37/Shr in Cash
- Fed to End Bond Buys This Month as Planned, Rosengren Says: WSJ
- Obama May Seek an Iran Nuclear Deal Without Congress: NYT
- Tesoro Acquires QEP Pipeline Assets in $2.5b Deal
- McDonald’s Says Russia Inspecting More Than 200 Restaurants
- Boeing Seeks Revised Schedule for $51b U.S. Aerial Tanker
- Nutreco Agrees to Be Bought by SHV for About $3.4b
- Sprint Job Reductions Will Include 452 at Kansas Headquarters
- Marc Andreessen Resigns From EBay Board as PayPal Is Spun Off
- Banks’ Range of Libor Calculation Methods May Be Standardized
- Danone Hasn’t Yet Decided on Priorities for External Growth
AM EARNS:
- Gannett (GCI) 8:30am, $0.55
- Genuine Parts (GPC) 8:52am, $1.24
- Halliburton (HAL) 7am, $1.10 - Preview
- Hasbro (HAS) 6:30am, $1.45 - Preview
- IBM (IBM) 7am, $4.32
- Lennox Intl (LII) 8am, $1.41
- Peabody Energy (BTU) 8am, $(0.66) - Preview
- Valeant Pharma (VRX CN) 6am, $1.99 - Preview
- VF Corp (VFC) 7am, $1.10 - Preview
PM EARNS:
- Apple (AAPL) 4:30pm, $1.30 - Preview
- BancorpSouth (BXS) 6:43pm, $0.33
- Brookfield Canada (BOX-U CN) Aft-Mkt, C$0.41
- Cadence Design Systems (CDNS) 4:05pm, $0.24
- Celanese (CE) 5pm, $1.44
- Chipotle Mexican Grill (CMG) 4:02pm, $3.83
- CYS Investments (CYS) 4:05pm, $0.32
- East West Bancorp (EWBC) 5:16pm, $0.60
- Helix Energy Solutions (HLX) 5:30pm, $0.50
- Hexcel (HXL) 4:05pm, $0.54
- IDEX (IEX) 4:05pm, $0.84
- Illumina (ILMN) 4:05pm, $0.56
- Packaging Corp of America (PKG) 5pm, $1.26
- Rambus (RMBS) 4:05pm, $0.13
- Rent-A-Center (RCII) 4:25pm, $0.47
- Steel Dynamics (STLD) 6pm, $0.44
- Texas Instruments (TXN) 4:30pm, $0.71
- Zions Bancorp (ZION) 4:10pm, $0.44
COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)
- Gold Advances in New York on Dollar Weakness to Falling Stocks
- Brent Crude Oil Trades Near Level Seen as OPEC Test; WTI Steady
- Gold Bulls Lured Back for First Time in Two Months: Commodities
- Copper Declines With Other Industrial Metals on China’s Slowdown
- Hedge Funds Cut Bullish Bets on Crude as Prices Tumble: Energy
- Sumitomo’s $1.55 Billion Loss Shows Shale Isn’t Booming for All
- Citrine’s Hommert Sees ‘Good Upside’ for Nickel Next Year
- Sugar Millers See Thai Cane Output Dropping Below 100 Mln Tons
- Rubber Reaches 1-Month High as Malaysia Sees 10% Drop in Output
- Fire Shuts U.K.’s Didcot B Power Station; No Risk Seen to Supply
- Iron Ore Risks Extending Collapse as Supply Jumps, Moody’s Says
- Modi Uses Oil Slump to Ease Curbs Deterring Exxon, Chevron
- Deeper Oil Slump Seen as ‘Disaster’ Risk for Australian LNG
- Goldman Sees Copper Underperforming Most Base Metals in 2015
CURRENCIES
GLOBAL PERFORMANCE
EUROPEAN MARKETS
ASIAN MARKETS
MIDDLE EAST
The Hedgeye Macro Team