THE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP - September 14, 2010

As we look at today’s set up for the S&P 500, the range is 26 points or -1.33% (1,107) downside and 0.99% (1,133) upside.  Equity futures are trading below fair value in what has been a quiet pre-market session with August Retail Sales being today’s primary market focal point.

  • AllianceBernstein (AB) said preliminary AUM fell 3.1% to $467b in August
  • Eli Lilly (LLY) said results from a Phase 2 trial showed patients with an acute coronary syndrome demonstrated “a statistically significant greater reduction” in platelet aggregation after taking Effient than anti-clotting drug Plavix
  • Ironwood Pharmaceuticals (IRWD) said a Phase 3 trial Linaclotide that showed the drug has the potential to reduce stomach pain or discomfort
  • Power Integrations (POWI) cuts its 3Q sales forecast
  • THQ (THQI) cut its forecast, saying it expects an adjusted loss for the year of at least $0.10
  • UIL Holdings (UIL) will sell 17.7m shares
  • Wabash National (WNC) said stockholder Trailer Investments plans to sell 9.35m shares

PERFORMANCE

  • One day: Dow +0.78%, S&P +1.11%, Nasdaq +1.93%, Russell +2.48%
  • Month-to-date: Dow +5.29%, S&P +6.91%, Nasdaq +8.14%, Russell +8.31%
  • Quarter-to-date: Dow +7.88%, S&P +8.84%, Nasdaq +8.39%, Russell +6.99%
  • Year-to-date: Dow +1.12%, S&P +0.6%, Nasdaq +0.75%, Russell +4.27%

EQUITY SENTIMENT:

  • ADVANCE/DECLINE LINE: 1586 (+762)
  • VOLUME: NYSE - 935.94 (+23.66%)  
  • SECTOR PERFORMANCE: Every sector was positive lead by XLF
  • MARKET LEADING/LAGGING STOCKS YESTERDAY: Micron +8.29%, Xerox +7.68% and Zions +7.41%/Laboratory -4.70%, Visa -3.83% and Quanta -2.74%
  • VIX: 21.21 -3.55% - YTD PERFORMANCE: (-2.17%)             
  • SPX PUT/CALL RATIO: 0.92 from 1.95  

CREDIT/ECONOMIC MARKET LOOK:

  • TED SPREAD: 16.00, 0.476 (3.066%)
  • 3-MONTH T-BILL YIELD: 15% +0.01%
  • YIELD CURVE: 2.21 from 2.23

COMMODITY/GROWTH EXPECTATION:

  • CRB: 277.56 +0.88%
  • Oil: 77.66 +0.97% 
  • COPPER: 347.90 +2.13%
  • GOLD: 1,247 +0.27%

CURRENCIES:

  • EURO: 1.2861 +1.44%
  • DOLLAR: 81.912 -0.95%

OVERSEAS MARKETS:

ASIA

  • Nikkei (0.24%); Shanghai Composite +0.01%
  • Markets closed mixed in a tight range; attention was focused on Japan where the incumbent PM Naoto Kan retained office by winning presidency of Democratic Party of Japan
  • Beijing Aug housing prices +20.4% y/y vs. +22.0% seq
  • Japanese Jul industrial production revised down to +0.2% from +0.3%  

EUROPE

  • FTSE 100: -0.18%; DAX -0.21%; CAC 40 -0.27%
  • Major indices remain locked in a narrow trading range with investors shrugging off disappointing German ZEW economic sentiment reading and waiting for today's US economic indicators.
  • Volumes thus far have been low.
  • Utilities are the main drag on indices with chemicals generally outperforming.
  • Greece sold €1.17B of 26-week T-bills; auction shows yield of 4.82% vs. previous 4.65%; bid-cover ratio 4.5 vs. previous 3.64
  • Germany Aug Wholesale Price Index +1.6% m/m vs. cons +0.2%
  • France Aug CPI +0.2% m/m vs. cons +0.4%
  • UK Aug RPI +0.4% m/m vs. cons +0.3%; Aug CPI +0.5% m/m vs. cons +0.3%
  • Eurozone Jul Industrial Production +7.1% y/y vs. cons +8.0%
  • Germany Sep ZEW survey 59.9 vs. cons 48; business indicator (4.3) vs. prior +14.0 and cons +9.0
  • EuroZone Q2 Labor Costs +1.60% y/y and prior revised 1.90% 
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