THE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP - September 7, 2010

As we look at today’s set up for the S&P 500, the range is 20 points or 1.59% (1,087) downside and 0.23% (1,107) upside.  Equity futures are trading lower tracking a mixed close in Asia and weak trade in Europe as concerns over the state of the European banking sector keeps investors cautious.

  • Air Products & Chemicals boosted hostile takeover bid for Airgas by 3% to $65.50 in cash and said it will walk away unless ARG shareholders support its proposals at meeting next week
  • Watch CLF, BTU, NEM, CDE after Australia’s Julia Gillard won support to form govt. (Rio Tinto, BHP Billiton both down at least 0.9% in London)

PERFORMANCE

  • One day: Dow +1.24%, S&P +1.32%, Nasdaq +1.53%, Russell +1.76%
  • Month-to-date: Dow +4.33%, S&P +5.26%, Nasdaq +5.66%, Russell +6.86%
  • Quarter-to-date: Dow +6.89%, S&P +7.16%, Nasdaq +5.9%, Russell +5.56%
  • Year-to-date: Dow +0.19%, S&P (0.95%), Nasdaq (1.56%), Russell +2.87%

EQUITY SENTIMENT:

  • ADVANCE/DECLINE LINE: 1699 (+471)
  • VOLUME: NYSE - 946.541 (-1.51%) - volume drying up ahead of the long weekend
  • SECTOR PERFORMANCE: All sectors up last Friday
  • MARKET LEADING/LAGGING STOCKS LAST WEEK: Monster WW +7.03%, Janus +6.64% and Genworth Fin +5.99%/Campbell -2.97%, Family Dollar -2.98% and Newmont Mining -1.07%
  • VIX: 21.31 -8.11% - down 12.84% in past week YTD PERFORMANCE: (-1.71%)      
  • SPX PUT/CALL RATIO: 2.08 up from 1.31  

CREDIT/ECONOMIC MARKET LOOK:

  • TED SPREAD: 16.74 trading flat on the day
  •  3-MONTH T-BILL YIELD: .14% trading flat
  • YIELD CURVE: 2.20 from 2.13

COMMODITY/GROWTH EXPECTATION:

  • CRB: 272.77 +0.60%  Up 2% last week
  • Oil: 74.60 -0.56%
  • COPPER: 351.80 +0.51% - Dr. Copper ragging ahead again
  • GOLD: 1,249 flat

CURRENCIES:

  • EURO: 1.2876 -0.16% - Trading down big this AM
  • DOLLAR: 82.042 +0.03%

OVERSEAS MARKETS:

ASIA

  • Nikkei (0.81%); Hang Seng +0.22%; Shanghai Composite +0.08%
  • Asian markets ended mixed ahead of key August data from China expected later this week.
  • Bank of Japan keeps overnight call rate target unchanged at 0.1%
  • Australia leaves cash rate unchanged at 4.5%

 

EUROPE

  • FTSE 100: (0.70%); DAX (0.54%); CAC 40 (0.95%)
  • Major European indices are trading lower on concerns about the state of the region’s banks following a WSJ report that European stress tests understand holdings off risky government debt.
  • A report from the German banking association that the 10 biggest banks in the country may need €105B worth of additional capital.
  • Healthcare and Food & Beverage are the only two sectors higher. 
Howard Penney
Managing Director

THE DAILY OUTLOOK - levels and trends

THE DAILY OUTLOOK - S P

THE DAILY OUTLOOK - VIX

THE DAILY OUTLOOK - DOLLAR

THE DAILY OUTLOOK - OIL

THE DAILY OUTLOOK - GOLD

THE DAILY OUTLOOK - COPPER