Today's Market Take:
Broad Market Tone:
- Advance/Decline Line: Lower
- Sector Performance: Almost Every Sector Declining
- Market Leading Stocks: Underperforming
Equity Investor Angst:
- ISE Sentiment Index 73.0 -31.13%
- Total Put/Call .86 +17.81%
Credit Investor Angst:
- North American Investment Grade CDS Index 90.95 +1.9%
- European Financial Sector CDS Index 169.52 +.71%
- Western Europe Sovereign Debt CDS Index 101.17 +.27%
- Emerging Market CDS Index 262.55 +3.59%
- 2-Year Swap Spread 17.50 +.5 bp
- 3-Month EUR/USD Cross-Currency Basis Swap -20.25 -1.0 bp
Economic Gauges:
- 3-Month T-Bill Yield .06% -1 bp
- China Import Iron Ore Spot $134.20/Metric Tonne +.07%
- Citi US Economic Surprise Index 28.80 +1.6 points
- 10-Year TIPS Spread 2.53 -1 bp
Overseas Futures:
- Nikkei Futures: Indicating -115 open in Japan
- DAX Futures: Indicating -3 open in Germany
Portfolio:
- Slightly Lower: On losses in my retail, tech and biotech sector longs
- Disclosed Trades: Added to my (IWM)/(QQQ) hedges
- Market Exposure: Moved to 25% Net Long
Bloomberg:
- Cyprus Protesters Scuffle With Police as Anastasiades Seeks Deal.
Cypriot police scuffled with protesters, including employees of Cyprus
Popular Bank Pcl, outside Parliament as President Nicos Anastasiades
maneuvered at home and in Russia to stave off financial collapse. As the
Cabinet met in the capital, Nicosia, to discuss a proposed “investment
solidarity fund,” state-run CYBC television reported that Cyprus
Popular, the country’s second largest, would be shut down. The
Central Bank of Cyprus denied that the bank is closing, according to
central bank spokesperson Aliki Stylianou’s comment on CYBC. The
European Central Bank turned up the pressure on Anastasiades and
euro-area finance ministers to deliver a rescue package, saying it may
cut off emergency funds to Cypriot banks after March 25 unless a plan is
in place “that would ensure the solvency of the concerned banks.” The
finance ministers hold a teleconference tonight.
- Euro-Area Manufacturing, Services Shrank More Than Forecast. Euro-area services and manufacturing output contracted
more than economists estimated in March, adding to signs the currency
bloc’s economy is struggling to emerge from a recession. A
composite index based on a survey of purchasing managers in both
industries fell to 46.5 from 47.9 in February, London- based Markit
Economics said today. Economists had forecast a reading of 48.2,
according to the median of 23 estimates in a Bloomberg survey. A reading below 50 indicates contraction. The
data “indicate that the euro-zone economy has remained stuck in
recession in the first quarter,” said Martin Van Vliet, senior euro-area
economist at ING Groep NV in Amsterdam. “With fiscal austerity, tight
credit and high unemployment set to keep most peripheral economies in
recession, the
path back to growth will likely be slow and bumpy. Moreover, if the
situation surrounding Cyprus spirals out of control the onset of
recovery might well be delayed.” The euro-area
economy has contracted for five straight quarters and is forecast to
shrink 0.1 percent in the first three months of 2013.
- German Manufacturing Output Surprisingly Contracted in March. German manufacturing output
surprisingly contracted in March. A German index based on a survey of
purchasing managers in the manufacturing industry declined to 48.9 this
month from 50.3 in February, while a services gauge fell to 51.6 from
54.7, London-based Markit Economics said in an e-mailed report today. A reading below 50 indicates contraction. Economists had forecast a reading of 50.5 for the manufacturing index and 55.0 for the services gauge, according to the median estimates in
Bloomberg News surveys.
- Grillo Euro-Skeptic Party Seeks Mandate for Italy Government. Beppe
Grillo asked Italian President Giorgio Napolitano to give his party a
mandate to form a government as his deputies shunned an alliance with
rivals and restated their euro-skeptic views. “The Five Star
Movement asked for a full mandate to present its government agenda in
parliament,” Roberta Lombardi, the party’s chief whip in the lower house
of parliament, said today after she, Grillo and an ally from the Senate
met with Napolitano in the presidential palace in Rome. Grillo, 64,
is pushing ahead with his campaign promise to wrest political power from
established parties and re-evaluate positions, like euro membership,
that previously enjoyed near universal support in Parliament. His
resistance to compromise hurts rival Pier Luigi Bersani, who was
counting on some support from Five Star to claim the premiership, and
boosts Silvio Berlusconi’s push for influence over the next government.
- European Stocks Drop on German Manufacturing Report.
European (SXXP) stocks dropped by the most in three weeks as a report
showed German manufacturing unexpectedly contracted this month, while
Cyprus’s President worked on a new plan to obtain a bailout from the
euro area. Lanxess AG fell the most in 17 months after predicting lower
first-quarter earnings before interest, taxes, depreciation and
amortization than in the previous year. SAP AG, the biggest maker of
business-management software, dropped 2.1 percent. Brenntag AG climbed
by the most since December after the chemical distributor reported
full-year results that beat analysts’ estimates. The Stoxx 600 retreated 0.7 percent to 294.47 at the close in London.
- Commodity Producers Decline on Earnings Concern: China Overnight.
Chinese stocks fell for the third
time this week in New York as PetroChina Co. (PTR)’s lower-than-
estimated 2012 earnings stoked concern other commodity producers may
also report disappointing results. The Bloomberg China-US Equity Index
(CH55BN) of the most-traded
Chinese stocks in the U.S. dropped 0.5 percent to 91.89 as of
12:34 p.m.
- China Copper Imports Drop to Lowest in 19 Months as Exports Gain.
Imports of refined copper by China, the biggest user, declined in
February to the lowest level in 19 months, while exports rose for a
sixth month. Inbound shipments were 214,949 metric tons last month, the
lowest since July 2011, data from the General Administration of
Customs showed today. Exports expanded to 38,569 tons, the
highest since May, from 26,213 tons in January, data compiled by
Bloomberg showed.
- Oil Falls as German Manufacturing Output Contracts. Oil dropped as German manufacturing
output unexpectedly contracted in March, signaling the euro-zone debt crisis is slowing growth in the region’s biggest economy. Futures fell as much as 1.8 percent after a purchasing managers’ index for Germany’s manufacturing slipped to 48.9 this
month.
- Median Household Debts Rise as Percentage Owing Shrinks. The percentage of U.S. households
in debt shrank over a decade, even while the median amount owed
shot to $70,000, the Census Bureau reported today. Almost three-quarters of American households reported
holding some form of debt in 2000. Eleven years later, the share
had fallen to 69 percent in the wake of the worst economic
downturn since the Great Depression, the first drop in median
household debt in more than a decade. The Census Bureau report underscores the fragile nature of
the U.S. economy and household income, which has remained
stagnant for a generation. Even after the 2008 financial crisis, median secured debt,
which includes real estate and auto loans, rose to $91,000 in
2011, a 30.5 percent increase from the median $69,749 amount
owed in 2000.
- Initial Jobless Claims in U.S. Rise Less Than Forecast. Applications for jobless benefits increased by 2,000 to 336,000 in the week ended March 16, Labor Department figures
showed today. Economists projected 340,000 claims, according to
the median estimate in a Bloomberg survey.
CNBC:
- Cypriot Banks Face Winding-Up If No Levy Agreed: EU Official. The European Union gave Cyprus till Monday to raise the billions of
euros it needs to secure an international bailout or face a collapse of
its financial system that could push it out of the euro currency zone. In stark twin warnings on Thursday, the European Central Bank
said it would cut off liquidity to Cypriot banks and a senior EU
official made clear to Reuters that the bloc was ready to see the
bankrupt island banished from the euro in the belief it could then
contain damage to the wider European economy.
Zero Hedge:
Business Insider:
Reuters:
- China "extremely concerned" about U.S.-Japan island talk. Japan
and the United States have started talks on military plans in case of
armed conflict over a group of East China Sea Islets claimed by Tokyo
and Beijing, Japanese media said on Thursday, prompting China to
complain of "outside pressure." The Pentagon confirmed talks
were being held on Thursday and Friday between Shigeru Iwasaki, head of
the Japanese Self-Defence Forces' joint staff, and Samuel Locklear,
commander of U.S. forces in the Asia-Pacific, but said they were meant
to discuss "the overall security environment in the Asia-Pacific
region." "China is extremely concerned by these reports ... The Chinese
government has
the determination and ability to maintain the nation's territorial
sovereignty," Chinese Foreign Ministry spokesman Hong Lei said. "No
outside pressure will affect the resolve and determination of the
Chinese government and people to maintain territorial sovereignty."
MNI:
- France March Services PMI 41.9. France March Manufacturing PMI 43.9.
Telegraph:
- Cyprus bail-out: live. Eurozone ministers openly discussed Cyprus leaving the euro in an emergency
call on Wednesday, as alarm over the bailout crisis escalates.
Handelsblatt:
- The German government sees little leeway to grant concessions to
Cyprus if the country does not participate in its own bailout to the
extent demanded. A softening of the EU's stance on austerity risks
undermining confidence among bondholders already dented by the banking
crisis in Cyprus.
Ansa:
- Italy's Napolitano Won't Give Mandate Without Majority. Ansa
cites Northern League's Giacomo Stucchi as saying after govt-making
talks with Italian President Napolitano. Italian press say Napolitano
may appoint someone else as PM should Democratic Party leader Bersani no
have enough support.
Expansion:
- Spain Deposit Tax May Raise Up to EU3 Billion. A tax of .1% to
.2% of bank deposits may raise from EU1.5b to EU3b, citing bank of Spain
data. Budget Minister Cristobal Montoro said yesterday the tax was
designed to "impose order" on Spain's banking system after regional
governments sought to raise revenue from deposits.
People's Daily:
- Chinese, Iranian FMs meet on bilateral ties. Chinese
Foreign Minister Yang Jiechi met in Beijing Monday with his Iranian
counterpart Ali Akbar Salehi, exchanging views on the Iranian nuclear
issue and the situation in west Asia and north Africa. During the
meeting, Yang praised the smooth development of bilateral relations in
recent years. This year marks the 40th anniversary of the establishment
of
China-Iran diplomatic ties, said Yang, adding China will work with Iran
to push forward the development of bilateral relations. Salehi said Iran attaches great importance to developing ties with China
and is willing to take the opportunity of the 40th anniversary to
further expand bilateral friendly cooperation.
Style Underperformer:
Sector Underperformers:
- 1) Software -2.63% 2) Networking -1.90% 3) Homebuilders -1.84%
Stocks Falling on Unusual Volume:
- SCHL, CBD, CHKR, ORCL, MXF, TUMI, JBL, ARG, RJF, MOV, GES, FDX, TLYS, SNY, TRLG, TOT, IHS, WAC, GLP, BKW, CHTR, TOT, EXLP, CATO, SAP, LEN and BAM
Stocks With Unusual Put Option Activity:
- 1) HUM 2) XHB 3) JDSU 4) FDX 5) NKE
Stocks With Most Negative News Mentions:
- 1) BKW 2) JNPR 3) NAV 4) EBAY 5) SCHL
Charts:
Style Outperformer:
Sector Outperformers:
- 1) Gold & Silver +1.79% 2) Coal +.25% 3) Steel +.18%
Stocks Rising on Unusual Volume:
Stocks With Unusual Call Option Activity:
- 1) ORCL 2) CTXS 3) CIM 4) ISIS 5) JBL
Stocks With Most Positive News Mentions:
- 1) COV 2) WFT 3) HPQ 4) GIS 5) ARG
Charts:
Evening Headlines
Bloomberg:
- Osborne Pledges Five More Years of U.K. Austerity.
U.K. Chancellor of the Exchequer George Osborne held firm to his
austerity plan as the economy continues to stagnate, saying government
spending cuts will carry on for three years after the 2015 election. As official growth forecasts were further downgraded, Osborne sought in his budget speech to Parliament yesterday to
regain voters’ support. He announced tax cuts for low earners
and companies and measures to boost home ownership, all financed
by a squeeze on departmental budgets and a renewed crackdown on
tax avoiders.
- Italy President Meeting Draws Grillo to Government Talks. Beppe Grillo, the ex-comic and
anti-austerity crusader, is being drawn into talks over the
formation of an Italian government after three weeks in which
the country’s political vacuum gave his influence room to grow. Leaders of Grillo’s Five Star Movement will meet President
Giorgio Napolitano today as the head of state seeks to build
consensus in a divided parliament. The grizzled entertainer, who
punctuated campaign speeches with jokes and profanity, has kept
his distance from rivals even as they adjust their programs to
win his backing. Grillo will be asked once more to submit to an
alliance during his meeting with Napolitano at the presidential
palace in Rome. “He will behave properly, but he will say no,” said
Giovanni Orsina, a history professor at Luiss Guido Carli
University.
- EU to Curb Banker Bonuses After Clinching Deal on Basel III Law. The European Union is to press
ahead with planned banker bonus curbs that were opposed by the
U.K. after Britain failed to water down a tentative agreement
from last month. European Parliament lawmakers and Ireland, which holds the
rotating presidency of the EU, kept bonus restrictions
unchanged, as they sealed a deal yesterday overhauling bank
capital and liquidity rules for the 27-nation EU.
- Japan Posts Longest Run of Trade Deficits in Three Decades.
Japan posted its longest run of trade deficits in three decades as
exports fell in February, underscoring challenges for Bank of Japan
(8301) Governor Haruhiko Kuroda in reviving the world’s third-biggest
economy. Shipments dropped 2.9 percent from a year earlier, the
Finance Ministry said in Tokyo today. The median estimate of 22
economists surveyed by Bloomberg News was for a 1.7 percent decrease. Imports rose 11.9 percent, leaving a trade shortfall of 777.5 billion yen ($8.1 billion). Exports
to China fell 15.8 percent as Asia’s largest economy celebrated the
week-long Lunar New Year holiday in February, while shipments to Asia
dropped 5.2 percent. Exports
to the U.S. rose 5.7 percent, while those to the European Union
fell 9.6 percent.
- FedEx(FDX) Pares Asia Flights Amid Shift to Cheaper Deliveries. FedEx Corp. plans to cut cargo
flights to Asia as customers accelerate their shift to the
company’s slower, less expensive international services. The shipping company is making the changes after missing
analysts’ estimates yesterday on both fiscal third-quarter
profit and its full-year forecast. An economic bellwether that
moves goods as varied as medical supplies and auto parts, FedEx
had already begun a $1.7 billion restructuring to make up for a
move away from its fastest, most expensive deliveries. “The trade lane between Asia and the U.S., in particular,
remains weak in terms of air freight,” said Logan Purk, a St.
Louis-based analyst at Edward Jones & Co. who has a buy rating
on the shares. “With FedEx leveraged more to a discretionary
air-freight model, they suffer.” The company, which operates a shipping hub at Guangzhou,
China, and plans to open one in Osaka, Japan, is also studying
grounding some planes.
- Gillard Faces Leadership-Contest Call as Australia’s Labor Lags. Senior Labor Party lawmakerSimon Crean called on Australian Prime MinisterJulia Gillard to hold
a leadership ballot, saying the government can’t win elections
due in six months from its current position in opinion polls. Crean said he doesn’t expect Gillard to agree and urged
Labor lawmakers in that instance to petition the prime minister
for a leadership ballot. Crean told reporters in Canberra he
would stand for the position of deputy and urged former leader
Kevin Rudd to put his name forward for the leadership.
- Tencent Falls as Analysts Cut Share Price Forecasts. Tencent
Holdings Ltd (700), China’s largest Internet company, fell the most in
17 months in Hong Kong trading after at least seven analysts cut share
price
forecasts on the stock.
The shares fell as much as 8.7 percent to HK$240, the most
since October 2011, before trading at HK$255.40 as of 9:47 a.m.
in Hong Kong.
- Bernanke Saying He’s Dispensable Suggests Tenure Ending. Federal Reserve Chairman Ben S. Bernanke said he’s “spoken to the president a bit” about his
future and that he feels no personal responsibility to stay at
the helm until the Fed winds down its unprecedented policies to
stimulate the economy. “I don’t think that I’m the only person in the world who
can manage the exit,” Bernanke said when asked at a news
conference in Washington if he’s discussed his plans with President Barack Obama. His term expires at the end of January.
- Aluminum May Extend Losses on Bear Flag: Technical Analysis.
Aluminum prices, down 6.5 percent
this year, probably will extend the slump to the lowest since October on
the London Metal Exchange, according to technical analysis by Matt
McKinney at Zaner Group LLC. After touching a low of $1,934.85 a metric ton on March 11,
prices jumped two days later to $1,996.25, creating a so-called
bear flag pattern that signals a drop by the end of this month
to $1,887, the lowest since Oct. 29, McKinney said.
Wall Street Journal:
- Lenders Reject New Plans to Assist Cyprus. Tapping Pensions for Bailout Spurned; Moscow Cool to Gas-for-Cash Proposal. Cyprus on Wednesday was left with narrowing options to rescue its
outsize financial-services sector from collapse—something that could end
its membership in the euro zone—after international lenders rejected an
alternative government plan to secure a multibillion-euro bailout and
Russian officials remained cool to a Cypriot gas-for-cash deal.
- Stagnant Japan Rolls Dice on New Era of Easy Money. Japan's new central bank governor, Haruhiko Kuroda, begins work Thursday
on a feat no one before has managed: reversing nearly two decades of
falling prices to lift wages and profits in the world's third largest
economy.
- U.S. to Shift Drone Command. Mounting Criticism Sparks Push to Move Lethal Program to Military From CIA. The White House is working to shift control of the Central
Intelligence Agency's lethal drone program to the military, U.S.
officials say, a move that redefines the widely contested campaign that
targets suspected terrorists. The new directive is intended to shift the covert drone program to
one that is subject to international laws of war and undertaken with the
consent of host governments.
The draft document reflects a growing
consensus within the Obama administration that the long-term future of
the program lies with the military, where U.S. officials say it will be
on firmer legal footing and be more transparent. The drone program has
drawn fire from both Democrats and Republicans who say it is secretive
and unpredictable.
Fox News:
MarketWatch.com:
- Cyprus mulls plan to stem capital flight. Doubt over Cyprus’ financial future showed no sign of lifting Thursday,
with officials reportedly set to introduce new legislation to try to
prevent capital exiting the country, amid negotiations to shore up the
country’s finances.
CNBC:
- North Korea Military Threatens US Bases as 'Within Target'. North Korea's supreme military command said on Thursday its
"precision attack" weapons have U.S. navy bases in Guam and Okinawa in
their sights and will attack them if it is provoked. "The
United States is advised not to forget that our precision target tools
have within their range the Anderson Air Force base on Guam where the
B-52 takes off, as well as the Japanese mainland where nuclear powered
submarines are deployed and the navy bases on Okinawa," the North Korean
command spokesman was quoted by KCNA news agency. North Korea
earlier made a threat to stage a nuclear attack on the United States,
something that is well outside of its current military capacity,
although the U.S. Pacific bases are in range of its medium range
missiles.
- South Korea: Chinese Address Source of Cyberattack. A
Chinese Internet address was the source of a cyberattack on one of the
South Korean companies hit in a massive computer shutdown
that affected five other banks or media companies, initial findings
indicated Thursday.
- Guess(GES) profit falls, issues weak forecast. Guess Inc.'s fiscal fourth-quarter dropped 24 percent as the company
discounted more clothing due to economic pressures on European shoppers
and fewer customers in North America. It issued a disappointing forecast
and shares fell in after-hours trading.
Zero Hedge:
Business Insider:
- Why You Should Ignore The Strong China Flash PMI Report. Furthermore, he points to non-recurring items and the fact that the
report conflicts with the recent slew of disappointing data out of the
world's second largest economy. "That said, there are significant distortions on PMI readings around
the Lunar New Year (LNY) holiday, so investors should view those
volatilities in PMI with caution. Other leading indicators such as daily
power output suggest that March manufacturing activities remain
relatively weak and street economists will likely cut their 1Q13 GDP
growth forecasts."
Reuters:
- Exclusive: German union chief to VW Tennessee workers - Join UAW. The United Auto
Workers has won the backing of the head of an influential German union
in its effort to represent the hourly workers at Volkswagen AG's Chattanooga, Tennessee, assembly plant. "In Chattanooga, you need union
representation" to negotiate working conditions, IG Metall President
Berthold Huber said in a letter distributed in early March to the
plant's 2,350 hourly employees. A copy of the letter was obtained by
Reuters. "We
strongly recommend that the eligible employees at Volkswagen,
Chattanooga, decide that the UAW should represent them," he added.
- Cyprus scrambles to avert meltdown, EU threatens cutoff.
Cyprus considered
nationalizing pension funds and ordered banks to stay shut till next
week to avert financial chaos after it rejected the terms of a European
Union bailout and turned to Russia for aid. Crisis talks among the
political leadership in Nicosia are set to resume on Thursday after
late-night meetings to discuss a "Plan B" broke up on Wednesday without
result. EU officials voiced frustration but little sympathy for an
ambitious but now bust banking system that extended itself well beyond
the island; Russia, whose citizens have billions to lose in those
Cypriot banks, called the EU a "bull in a china shop".
- Moody's downgrades Brazil's BNDES, Caixa on eroding capital. Moody's Investors Service
lowered on Wednesday the long-term issuer ratings of Brazilian
state banks BNDES and Caixa Econômica Federal, citing their
eroding capital position after years of rapid credit expansion. Analysts led by Alexandre Albuquerque cut ratings on state
development bank BNDES and on Caixa, the
country's largest mortgage lender, to "Baa2" from "A3,"
according to a statement. Both rankings, which are within
investment-grade ratings, bear a positive outlook - meaning that
an upgrade would be likely to happen within 12 to 18 months.
- Oracle(ORCL) blames sales force for Q3 miss, stock drops. Oracle Corp
blamed its rapidly expanding salesforce for a severe miss in
third-quarter software sales and warned that its ailing hardware
business will lose more ground this quarter, driving its shares
8 percent lower on Wednesday.
- Brazil flat steel inventory rises, sales fall in February. Steel
distribution companies in Brazil sold 317,900 tonnes of flat products
in February, a drop of 13.8 percent from the prior month, industry group Sindisider said in a report
on Wednesday. February sales were 7.5 percent below the amount sold a year
earlier. Distributors bought 8.7 percent less steel in February
from the previous month. Inventory rose 2.4 percent from
September to the equivalent of 3.1 months of sales, or 970,400
tonnes, Sindisider said.
Telegraph:
Yomiuri:
- Japan plans to request the EU to keep arms embargo on China, citing a Japanese government official.
VOA:
- Japan and the U.S. will draft a plan to counter Chinese military
action to seize disputed island in East China Sea, citing a U.S. defense
official. Shigeru Iwasaki, Chief of Joint Staff of Japanese Self
Defense Forces, and Samuel Locklear, commander of the U.S. Pacific
Command, will meet in Hawaii this week.
Want China Times:
Evening Recommendations
Oppenheimer:
- Rated (GY) Outperform, target $20.
Night Trading
- Asian equity indices are -.25% to +.75% on average.
- Asia Ex-Japan Investment Grade CDS Index 118.25 -3.25 basis points.
- Asia Pacific Sovereign CDS Index 82.5 unch.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
8:30 am EST
- Initial Jobless Claims are estimated to rise to 340K versus 332K the prior week.
- Continuing Claims are estimated to rise to 3050K versus 3024K prior.
8:58 am EST
- The Preliminary Markit US PMI for March is estimated to rise to 54.8 versus 54.3 in February.
9:00 am EST
- The House Price Index forJanuary is estimated to rise +.7% versus a +.6% gain in December.
10:00 am EST
- The Philly Fed for March is estimated to rise to -3.0 versus -12.5 in February.
- Existing Home Sales for February are estimated to rise to 5.0M versus 4.92M in January.
- Leading Indicators for February are estimated to rise +.4% versus a +.2% gain in January.
Upcoming Splits
Other Potential Market Movers
- The Eurozone PMI, Bloomberg Economic Expectations Index for March,
weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas
inventory report, JP Morgan Insurance Conference, (AZN) investor day and the (PANW) analyst day could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by automaker and consumer shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.
Broad Market Tone:
- Advance/Decline Line: Higher
- Sector Performance: Most Sectors Rising
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- ISE Sentiment Index 119.0 -37.68%
- Total Put/Call .78 -19.59%
Credit Investor Angst:
- North American Investment Grade CDS Index 89.09 +8.8% (new series)
- European Financial Sector CDS Index 166.51 +2.69%
- Western Europe Sovereign Debt CDS Index 100.90 -.10%
- Emerging Market CDS Index 244.35 -.73%
- 2-Year Swap Spread 17.0 -1.0 bp
- 3-Month EUR/USD Cross-Currency Basis Swap -19.25 +2.0 bps
Economic Gauges:
- 3-Month T-Bill Yield .07% +1 bp
- China Import Iron Ore Spot $134.10/Metric Tonne -.22%
- Citi US Economic Surprise Index 27.20 +.3 point
- 10-Year TIPS Spread 2.54 +2 bps
Overseas Futures:
- Nikkei Futures: Indicating +169 open in Japan
- DAX Futures: Indicating +9 open in Germany
Portfolio:
- Slightly Higher: On gains in my retail, tech, medical and biotech sector longs
- Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back
- Market Exposure: 50% Net Long
