TODAY’S S&P 500 SET-UP - September 20th, 2010

As we look at today’s set up for the S&P 500, the range is 24 points or -1.12% downside to 1113 and 1.01% upside to 1137.  Equity futures are trading higher with focus on the FOMC meeting tomorrow. Oil & Gas, Chemicals and Basic Resources sectors are among the gainers in Europe helped by gains in metals prices. Today's macro highlights include: NAHB Housing Market Index.

  • American Apparel (APP) was granted an extension until November 15 by the NYSE Amex LLC to meet listing standards
  • BP (BP) killed its Macondo well in the Gulf of Mexico after creating another cement seal, plugging the source of the largest offshore oil spill in U.S. history
  • Diamond Hill Investment Group (DHIL) will pay a special dividend of $13 a share.
  • Lionbridge Technologies (LIOX) said COO Satish Maripuri resigned
  • Nicor (GAS) agreed to acquire assets of the shipping business V.I. Cargo Services
  • OpenTable (OPEN) may drop after Barron’s said its shares are overvalued, having doubled since February.
  • Petrobank Energy and Resources (PBEGF) may rise as production increases and demand for its efficient drilling technology expands, Barron’s said.
  • Roma (ROMA) said it may buy back as much as 5% of its shares.
  • Ruby Tuesday (RT) entered into a licensing agreement with LFMG International LLC to open and operate up to 200 Lime Fresh Mexican Grill restaurants.
  • Spark Networks (LOV) may be an attractive takeover target as investors discover the value of its business, Barron’s said.
  • Time Warner’s (TWX) “The Town” opened as the top move at the North American box office over the weekend



  • One day performance: Dow +0.12%, S&P +0.08%, Nasdaq +0.54%, Russell +0.56%
  • Month-to-date: Dow +5.92%, S&P +7.27%, Nasdaq +9.54%, Russell +8.2%
  • Quarter-to-date: Dow +8.53%, S&P +9.21%, Nasdaq +9.78%, Russell +6.88%
  • Year-to-date: Dow +1.72%, S&P +0.94%, Nasdaq +2.05%, Russell +4.17%



  • ADVANCE/DECLINE LINE: +554 (+1039)
  • VOLUME: NYSE - 1856.09 (+104.83%)  
  • SECTOR PERFORMANCE: Only two sectors up on Friday - XLI and XLK.  Markets initially opened up on carry-over enthusiasm behind RIMM +0.5% and ORCL +8.4%, but indices quickly returned to near flat on the release of MACRO data which provided further evidence of a slower growing economy.  The decline in the preliminary U of Michigan Consumer Sentiment surprised the downside. Materials, Utilities and Consumer Staples lagged.
  • MARKET LEADING/LAGGING STOCKS YESTERDAY: Oracle +8.28%, Interpublic +4.78% and SLM Corp +4.46%/Massey -7.48%, Tyson -6.87% and MICRON Tech -4.37%
  • VIX: 22.01 +1.34% - YTD PERFORMANCE - (+1.52%)          
  • SPX PUT/CALL RATIO: 2.40 from 1.03 +133.41%


  • TED SPREAD: 14.75 0.304 (2.107%)
  •  3-MONTH T-BILL YIELD 0.16% unchanged
  • YIELD CURVE: 2.27 from 2.29


  • CRB: 279.65 +0.34%
  • Oil: 73.66 -1.22% - Traded down 4 of 5 days last week; down 3.65% for the week.    
  • COPPER: 352.20 +0.82% - Oil and copper are telling different stories; up 3.39% for the week
  • GOLD: 1,276 +0.32% - Treaded up 4 of 5 days last week; up 2.64% for the week


  • EURO: 1.3050 -0.18%
  • DOLLAR: 81.398 +0.19% 



  • European Markets: FTSE 100: +1.18%; DAX: +0.69%; CAC 40: +1.02%
  • European markets opened higher in a broad based move as investors take on more risk. 
  • In an absence of any significant international news flow, M&A continued to dominate headlines after Safran and BAE Systems announced a deal to carve up US securities firm L-1 Identity Solutions.  
  • Rising metal and commodity prices helped lift basic material plays, while BP rose after it said it had finally killed its leaking well in the Gulf of Mexico. 
  • Gold hits another record high of $1.283 an ounce.  


  • Asian Markets: Nikkei (closed); Shanghai Composite (0.4%)
    Asian markets were mixed today in cautious trade, as every day this week will see at least one market closed for a holiday. South Korea and China will close for three days each.
  • Taiwan went up. Sinopac rose 1% when Taiwan’s financial regulator approved MOUs between it and a Chinese partner.
  • South Korea opened down, but ended posting a small gain.
  • Hong Kong finished little-changed. Large-cap property developers gained 2% as property prices are not falling even as transaction volumes do.
  • In low volume, profit-taking in banks and miners took Australia down, though recouped most of their losses in light trade by the time the day ended.
  • Losses in pharmaceuticals were partially offset by gains in banks in China.
  • Japan was closed for Respect for the Aged Day.
  • The yen is trading at 85.66 to the US dollar.
Howard Penney
Managing Director

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