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TODAY’S S&P 500 SET-UP - September 8, 2010

As we look at today’s set up for the S&P 500, the range is 21 points or 0.53% (1,086) downside and 1.39% (1,107) upside.  Equity futures are trading mixed tracking a weak close in Asia and lower European indices as worries about the state of some European economies and the banking sector keep investors away. Today's macro highlights include: MBA Mortgage Purchase Applications, Beige Book and July Consumer Credit.

  • President Obama is expected to say that Bush-era tax cuts for the wealthiest Americans shouldn’t be extended when he speaks in Cleveland at 2:30 p.m.
  • Altera (ALTR) boosted 3Q rev. growth forecast to 10%-14% from 4%-8%
  • AngioDynamics (ANGO) forecast 1Q EPS 7c-8c, vs est. 11c
  • Phillips-Van Heusen (PVH) boosted FY adj. EPS guidance to $3.70-$3.80 from $3.55-$3.65, vs est. $3.62
  • RTI Biologics (RTIX) cut FY EPS forecast to 10c-12c from 15c-17c
  • UDR (UDR) agreed to buy five communities in Calif., Mass and Md., and one pre-sale venture in Mass., for $455.1m
  • Wet Seal (WTSLA) plans to buy back as much as $25m shares

PERFORMANCE

  • One day: Dow (1.03%), S&P (1.15%), Nasdaq (1.11%), Russell 2000 (2.19%)
  • Month-to-date: Dow +3.25%, S&P +4.05%, Nasdaq +4.49%, Russell +4.52%
  • Quarter-to-date: Dow +5.80%, S&P +5.93%, Nasdaq +4.72%, Russell +3.74%
  • Year-to-date: Dow (0.84%), S&P (2.09%), Nasdaq (2.66%), Russell +0.63%.

EQUITY SENTIMENT:

  • ADVANCE/DECLINE LINE: -1416 (-3115)
  • VOLUME: NYSE: 830.38 (-12.24%) - summer is no longer an excuse
  • SECTOR PERFORMANCE: All sectors were down yesterday
  • MARKET LEADING/LAGGING STOCKS YESTERDAY: Oracle +5.85%, US Steel +4.57% and Newmont +1.97%/Goodyear Tire -6.02%, H&R Block -5.94% and KLA -5.57%
  • VIX: 23.80 +11.7% - YTD PERFORMANCE - (+9.8%)            
  • SPX PUT/CALL RATIO: 2.00 from 2.08

CREDIT/ECONOMIC MARKET LOOK:

  • TED SPREAD: 17.18 0.468 (2.797%)
  •  3-MONTH T-BILL YIELD: .14% trading flat
  • YIELD CURVE: 2.12 from 2.20  

COMMODITY/GROWTH EXPECTATION:

  • CRB: 273.81 +1.04%
  • Oil: 74.09 -0.68%
  • COPPER: 347.05 -0.84% - First down day in three
  • GOLD: 1,256 +0.55%

CURRENCIES:

  • EURO: 1.2732 -1.12% - Looking to be down for three days
  • DOLLAR: 82.82 +0.95% - two day rally

 

OVERSEAS MARKETS:

ASIA

  • Nikkei (2.18%); Hang Seng (1.46%); Shanghai Composite (0.11%)
  • Asian markets followed Wall Street down today.
  • In China, financials slumped, and property stocks went down on a report that the government may launch a new round of measures to cool the property market.
  • Steel stocks fell on profit-taking.

EUROPE

  • FTSE 100: (0.61%); DAX: (0.65%); CAC 40: (0.54%) (as of 04:55 ET)
  • European markets opened modestly lower, pared declines to trade little changed, with pan-European indices seeing slight gains, before moving sharply lower as concerns over the financial sector again hurt sentiment.
  • Peripheral markets led declines as worries over Irish banks continued and news that National Bank of Greece will raise approx €2.8B in capital sent Greek banks down over (5%).
  • Defensive sectors led performance, with three sectors, utilities, food & beverage and healthcare, trading higher on the day.