TODAY’S S&P 500 SET-UP
As we look at today’s set up for the S&P 500, the range is 21 points or 1.3% (1,113) downside and 0.9% (1,138) upside.
Equity futures are trading below fair value with today's FOMC meeting the key focus. The FOMC plans to release a statement at 2:15 p.m. today and, in my view, it’s unlikely that Chairman Bernanke will be able to string together the right words to satisfy the market.
ADVANCE/DECLINE LINE: -1366 (+1599)
- VOLUME: NYSE - 790.073 (-16.5%)
- SECTOR PERFORMANCE: Every sector positive yesterday - XLY, XLK and XLB leading the way
- MARKET LEADING/LOOSING STOCKS: CARMAX +4.95, King Pharma +4.44 and Hewlett-Packard (7.99%) and Tyson Foods (4.9%)
EQUITY SENTIMENT:
- VIX 22.14 1.84%- The VIX is broken on TRADE, but bearish for equities.
- SPX PUT/CALL RATIO - 2.01 up from 1.74 (low on 07/15/10 of 0.87)
CREDIT/ECONOMIC MARKET LOOK:
- TED SPREAD - 25.99 -0.759 (-2.837%)
- 3-MONTH T-BILL YIELD .14%, unchanged
- YIELD CURVE - 2.3088 to 2.2974
COMMODITY/GROWTH EXPECTATION:
- CRB: 274.59 -0.04%
- Oil: 81.48 0.97% (first up day in 3)
- COPPER: 335.30 0.33% (currently trading at 328 below 332 - BEARISH for growth expectations
- GOLD: 1,200 -0.37% (trading down for 2 days)
CURRENCIES:
- EURO: 1.3228 -0.39% - (trading down for 2 days)
- DOLLAR: 80.711 +0.38%) - (trading up for two days)
OVERSEAS MARKETS:
- ASIA - Major indices closed weaker in response to a sharp fall seen in China in response to bearish economic data. Banking stocks were among the leading decliners, while energy stocks were also weighing on markets.
- EUROPE - European markets are range bound at lower levels with investors largely sidelined ahead of today's FOMC meeting. Mining, Financials and export orientated names are weighing on the indices.
- EASTERN EUROPE - Trading lower - Russia down 1.86% and Hungary down 1.76%.
- LATIN AMERICA - Mixed Peru and Chilie trading higher
- MIDDLE EAST/AFRICA - Mostly lower with Nigeria leading the way…
Howard Penney
Managing Director
