TODAY’S S&P 500 SET-UP - September 1, 2010
As we look at today’s set up for the S&P 500, the range is 21 points or 1.08% (1,038) downside and 0.92% (1,059) upside.
Equity futures are trading above fair value boosted by stable Chinese manufacturing data and tracking gains across European indices. The focus continues to be on economic news as the market looks for signs of an economic recovery.
- Today's macro highlights include August ADP Employment Report, July Construction Spending and August ISM Index
- Eli Lilly (LLY) won a court order banning sales of generic versions of Strattera until a patent appeal is decided
- FormFactor (FORM) cut 3Q rev. forecast to $46m-$48m vs. est. $57.3m
- PerkinElmer (PKI) agreed to sell illumination and detection solutions business to Veritas Capital Fund III LP for ~$500m
- Sysco (SYY) approved a program to repurchase 20m shares, or 3.4% outstanding stock
- Texas Instruments (TXN) and Spansion (CODE) entered agreement to make Flash memory chips through June 2012
- PERFORMANCE ONE DAY: Dow +0.05%, S&P +0.04%, Nasdaq (0.28%), Russell 2000 +0.05%
- PERFORMANCE MONTH-TO-DATE: Dow (4.31%), S&P (4.74%), Nasdaq (6.24%), Russell (7.50%)
- PERFORMANCE QUARTER-TO-DATE: Dow +2.46%, S&P +1.61%, Nasdaq +0.23%, Russell (1.22%)
- PERFORMANCE YEAR-TO-DATE: Dow (3.96%), S&P (5.90%), Nasdaq (6.84%), Russell (3.73%)
- ADVANCE/DECLINE LINE: 327 (+2014)
- VOLUME: NYSE - 1402.70 (+71.41%) - Very strong volume on an UP day
- SECTOR PERFORMANCE: 5 of 9 sectors traded up on the day
- MARKET LEADING/LAGGING STOCKS YESTERDAY: Sprint +4.62%, Dean Foods +4.39% and Cliffs Natural +3.66%/Broadcom -6.4%, Monsanto -5.81% and Textron -4.15%
- VIX: 26.05 -4.26% - YTD PERFORMANCE: +20.2%
- SPX PUT/CALL RATIO: 1.82 from 3.04
CREDIT/ECONOMIC MARKET LOOK:
- TED SPREAD: 15.87 -1.015 (-6.008%)
- 3-MONTH T-BILL YIELD: .14% unchanged
- YIELD CURVE: 2.00 from 2.04
- CRB: 264.19 -1.33%
- Oil: 71.92 -3.72%
- COPPER: 337.00 -1.73%
- GOLD: 1,248 +0.88%
- EURO: 1.2689 +0.09%
- DOLLAR: 83.202 +0.05%
- Nikkei +1.17%; Hang Seng +0.43%; Shanghai Composite (0.60%) Regional indices ended higher, with the exception of Shanghai Composite Index which suffered from a profit taking. Good macro data from Australia and China helped boost investor sentiment.
- Australia Q2 GDP +1.2% q/q vs. survey +0.9%
- China August PMI 51.7 vs. survey 51.5.
- Major indices are trading higher helped by good data. Construction & Materials, Basic Resources and Media are among the positive sectors.
- France Aug Final Manufacturing PMI 55.1 vs. preliminary 54.7
- Germany July Retail Sales +0.8% y/y vs. consensus +1.4% and prior revised 4.7
- Germany Aug Final Manufacturing PMI 58.2 vs. advance 58.2
- Eurozone Aug Final Manufacturing PMI 55.1 vs. preliminary 55.0