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TODAY’S S&P 500 SET-UP - September 28, 2010

As we look at today’s set up for the S&P 500, the range is 17 points or -0.71% downside to 1134 and 0.77% upside to 1151. Equity futures have turned higher following comments by Fitch that Ireland may avoid further downgrades if it comes out with a credible cost plan for Anglo Irish Bank.  Earlier today, Ireland reiterated it would not default on ANGL senior debt.

  • American Capital Agency (AGNC) plans to sell 10m shares in secondary offering
  • Cognex (CGNX) raises 3Q rev. forecast to $74m-$76m vs estimate $66.7m
  • Entropic Communications (ENTR) plans to offer 10m shares
  • LaSalle Hotel Properties (LHO) said CFO Hans S. Weger will leave the company by February 28
  • Pfizer (PFE) discontinued phase 3 trial evaluating Sutent drug with prednisone for castration- resistant prostate cancer
  • Viacom (VIA/B US) CEO Philippe Dauman, told CNBC that ad market is “strong,” sees “sequential growth” over next two quarters 

PERFORMANCE

  • One day performance: Dow (0.44%), S&P (0.57%), Nasdaq (0.48%), Russell (0.41%)
  • Month-to-date: Dow +7.96%, S&P +8.85%, Nasdaq +12.1%, Russell +11%
  • Quarter-to-date: Dow +10.62%, S&P +10.81%, Nasdaq +12.35%, Russell +9.65%
  • Year-to-date: Dow +3.68%, S&P +2.43%, Nasdaq +4.43%, Russell +6.86%

EQUITY SENTIMENT:

  • ADVANCE/DECLINE LINE: -485 (-2465)
  • VOLUME: NYSE: 920.44 (-14.04%)  
  • SECTOR PERFORMANCE: Other than continued M&A there was not much news flow yesterday; neither major economic data points nor big corporate releases. European bank/credit concerns pressured the financial sector, which was the worst performing sector. Technology and utilities were positive and Financials was the worst performing sector.  
  •  MARKET LEADING/LAGGING STOCKS YESTERDAY: Southwest Air 8.71%, Juniper +4.20% and Pulte +3.56%/M&T Bank -7.04%, Intuitive -5.01% and Monsanto -4.17%
  • VIX: 22.54 +3.82% - YTD PERFORMANCE +3.97%
  • SPX PUT/CALL RATIO: 1.73 from 1.57 +9.93%

CREDIT/ECONOMIC MARKET LOOK:

  • TED SPREAD: 14.84 -1.116 (-6.997%)
  • 3-MONTH T-BILL YIELD: 0.16% +0.1%
  • YIELD CURVE: 2.10 from 2.17

COMMODITY/GROWTH EXPECTATION:

  • CRB: 284.14 +0.18% - up 4 days in a row.
  • Oil: 76.52 +0.04%
  • COPPER: 359.70 -0.58%
  • GOLD: 1,297.02 +0.08%

CURRENCIES:

  • EURO: 1.3479 -0.10%
  • DOLLAR: 79.338 -0.07%

OVERSEAS MARKETS:

Europe

  • FTSE 100: (0.40%); DAX (0.16%); CAC 40 (0.19%)
  • Equities are trading lower as concerns over the economies resurface following negative news flow concerning Spain, Greece and Ireland.
  • Automobiles, Construction & Materials and Banks are among the worst performing sectors.
  • UK Q2 Final GDP +1.2% q/q vs consensus +1.2%
  • UK Q2 Final GDP +1.7% y/y vs consensus +1.7%
  • France August Consumer Spending (1.6%) m/m vs consensus +0.2%
  • France July Consumer Spending +2.7% m/m vs consensus +0.6% and prior revised (1.5%) from (1.4%)
  • Germany Oct GfK Consumer Sentiment Indicator +4.9 vs consensus +4.2 and prior revised +4.3  

Asia

  • Asian Markets: Nikkei (1.12%); Shanghai Composite (0.63%)
  • Most Asian markets followed Wall Street down today.
  • Australia was also flat.
  • South Korea slipped as carmakers and tech stocks gave up recent gains.
  • China declined when weakness in financials and profit-taking in airlines outweighed strong performances by agricultural stocks.
  • The combination of a weak performance by Wall Street and a strong yen sent Japan lower, though expectations for further monetary easing by the Bank of Japan provided some support.
  • The yen is trading at 84.20 to the US dollar. 

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