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TODAY’S S&P 500 SET-UP - September 2, 2010

As we look at today’s set up for the S&P 500, the range is 30 points or 2% (1,059) downside and 0.08% (1,089) upside. 

Equity futures are trading above fair value as markets await key US data on jobs and home sales. Over in Europe Basic Resources, Autos, Insurance and Tech sector’s offset weak Food and Telco stocks. Today's macro highlights include: Initial Jobless Claims, July Factory Orders and July Pending Home Sales.

  • Allergan (AGN) said it expects an impairment charge of $340m-$350m related to its Sanctura franchise
  • China Green (CGA) forecast FY2011 EPS $1.35-$1.37, vs. est. $1.43
  • Cigna (CI) CFO Annmarie T. Hagan will leave her post effective immediately, with Thomas A. McCarthy to be acting replacement
  • Collective Brands (PSS) reported 2Q EPS 32c vs. est. 45c
  • Greif (GEF) raised year adj. Class A EPS to $4.15-$4.35 from $4.05-$4.30, vs. est. $3.99
  • Martek Biosciences (MATK) forecast 4Q rev. of $108m-$113m, vs. est. $113.8m
  • SAIC (SAI) boosted FY2011 diluted EPS cont. ops growth forecast to 14%-18% Y/y from 8%-14%
  • Walgreen (WAG) agrees to buy 18 Graymark Healthcare (GRMH) pharmacies; GRMH sees realizing enterprise sale value $35m
  • Zumiez (ZUMZ) revised 2Q results to 4c loss-shr after settling lawsuit

EQUITY SENTIMENT:

  • PERFORMANCE ONE DAY: Dow +2.54%, S&P +2.96%, Nasdaq 2.978%, Russell 2000 +3.81%
  • PERFORMANCE YEAR-TO-DATE: Dow (1.5%), S&P (3.1%), Nasdaq (4.1%), Russell (0.1%)
  • ADVANCE/DECLINE LINE: 2233 (+1906)
  • VOLUME: NYSE - 1191.85 (-15%) - Big up day not confirmed by strong volume
  • SECTOR PERFORMANCE: All sectors up over 2% except the XLP ip 1.8%
  • MARKET LEADING/LAGGING STOCKS YESTERDAY: Office Depot +9.28%, Rowan Co +8.98% and Tenant HC +8.67%/Brown-Forman -4.52%, Newmont Mining -1.63% and Boston Scientific -1.16%
  • VIX: 23.89 -8.29% - down 12.5% in two days - YTD PERFORMANCE - 10.2%            
  • SPX PUT/CALL RATIO: 1.82 from 3.04

CREDIT/ECONOMIC MARKET LOOK:

  • TED SPREAD: 16.76 - +0.179 (1.082%)
  •  3-MONTH T-BILL YIELD: .13% -.01%
  • YIELD CURVE: 2.08 from 2.00

COMMODITY/GROWTH EXPECTATION:

  • CRB: 268.51 +1.64%
  • Oil: 73.91 +2.77% - bucking a down trend this week
  • COPPER: 347.75 +3.19% - Dr C ragging ahead
  • GOLD: 1,246 -0.17%

CURRENCIES:

  • EURO: 1.2796 +0.84% - looking at a 3 day rally
  • DOLLAR: 82.522 -0.82%

OVERSEAS MARKETS:

ASIA

  • The region’s markets tracked Wall Street to end higher with an added boost coming from a strong rise in Chinese August car sales. Miners gained in Australia on higher copper prices.
  • China up 1.25%

 

EUROPE

  • Major indices are trading flat to lower as caution prevails ahead of the ECBank interest rate decision.
  • UK August Construction PMI 52.1 vs. consensus 53.2 and prior 54.1
  • UK Aug Nationwide House Price Index (0.9%) m/m vs. consensus (0.2%) and prior (0.5%)
  • UK Aug Nationwide House Price Index +3.9% y/y vs. consensus +4.9% and prior +6.6%
  • France Q2 ILO unemployment rate 9.7% and prior 9.9%
  • Euro zone July PPI +4.0% y/y vs. consensus +4.0% and prior +3.0%
  • Euro zone July PPI +0.2% m/m vs. consensus +0.3% and prior revised +0.3%