Click Here for Today's Market Take:
Broad Equity Market Tone:
- Advance/Decline Line: Slightly Higher
- Sector Performance: Mixed
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- Volatility(VIX) 13.90 -.79%
- Euro/Yen Carry Return Index 135.36 +.15%
- Emerging Markets Currency Volatility(VXY) 10.26 -1.25%
- S&P 500 Implied Correlation 53.25 +1.45%
- ISE Sentiment Index 67.0 +13.56%
- Total Put/Call .88 -12.0%
Credit Investor Angst:
- North American Investment Grade CDS Index 78.19 +1.47%
- European Financial Sector CDS Index 158.64 +2.57%
- Western Europe Sovereign Debt CDS Index 96.0 -.10%
- Emerging Market CDS Index 319.64 -.87%
- 2-Year Swap Spread 17.25 +.25 bp
- 3-Month EUR/USD Cross-Currency Basis Swap -11.0 -1.25 bps
Economic Gauges:
- 3-Month T-Bill Yield .04% +1 bp
- China Import Iron Ore Spot $126.80/Metric Tonne +1.28%
- Citi US Economic Surprise Index -11.70 +.2 point
- Citi Emerging Markets Economic Surprise Index -37.70 -6.0 points
- 10-Year TIPS Spread 2.05 +2 bps
Overseas Futures:
- Nikkei Futures: Indicating +118 open in Japan
- DAX Futures: Indicating +6 open in Germany
Portfolio:
- Higher: On gains in my tech, medical and biotech sector longs
- Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my (EEM) short
- Market Exposure: Moved to 50% Net Long
Bloomberg:
- France Loses Top Credit Rating as Fitch Cites Lack of Growth. France
lost its top credit rating at Fitch Ratings, which highlighted concern
about lack of growth and the buildup of debt in Europe’s second-largest
economy. France was cut by one step to AA+ from AAA, Fitch said today,
joining Moody’s Investors Service and Standard & Poor’s in removing
France from the shrinking club of top-rated
governments. The outlook is stable. Budget risks “lie mainly to the downside, owing to the
uncertain growth outlook and the ongoing euro zone crisis, even
assuming no wavering in commitment to fiscal consolidation,”
Fitch said in a statement.
- Portuguese Bonds Tumble Amid Political Upheaval as Bunds Rally. Portugal’s bonds fell, with 10-year
bonds heading for the longest stretch of weekly declines since
at least 1997, amid concern a political dispute will result in
new elections and endanger the nation’s financial-aid program. Ten-year Portuguese yields climbed toward the highest since
November after the nation’s debt agency said it would sell bonds
regularly should market conditions be conducive. German, French
and Dutch bonds advanced after European Central Bank Executive
Board member Vitor Constancio said euro-region monetary policy
would stay accommodative. Ireland’s 10-year yields dropped the
most in a week after Standard & Poor’s raised its outlook for
the nation’s debt rating to positive. “Portugal is being sold on the back of the political
commentary,” said Marc Ostwald, a strategist at Monument
Securities Ltd. in London. “There doesn’t seem to be a lot of
common ground between the parties and with a small bond market
like Portugal, the move gets exaggerated.” Portuguese 10-year yield climbed 61 basis points, or 0.61
percentage point, to 7.51 percent at 4:54 p.m. London time,
after rising to 8.11 percent on July 3, the highest level since
Nov. 21.
- Portugal Credit-Default Swaps Soar to Highest Since November. The
cost of insuring Portuguese government debt rose as much as 75 basis
points to 562.
- China Squeezes Shadow Banking as Li Grapples With Cooling Growth. China made progress in curbing
shadow banking in June and slowed money-supply growth, as
Premier Li Keqiang seeks to rein in the credit boom that poses risks for the nation’s financial system.
Data for aggregate financing, the broadest measure of credit, showed
new yuan loans played the biggest role since September 2011, with
non-traditional sources of finance less prominent. M2 money supply rose
14 percent, down from 15.8
percent the previous month, People’s Bank of China numbers
showed in Beijing yesterday.
- India Factory-Output Unexpectedly Dips as Inflation Quickens. India’s industrial output contracted
unexpectedly in May, adding pressure for more government steps
to revive the economy as a sliding rupee curbs scope for further
interest-rate cuts. Production at factories, utilities and mines declined 1.6
percent from a year earlier after a revised 1.9 percent climb in
April, the Central Statistical Office said in New Delhi today.
The median of 31 estimates in a Bloomberg News survey was for a
1.4 percent gain. Another report showed consumer-price inflation
accelerated to 9.87 percent in June. The rupee’s plunge to a record low against the dollar this
year threatens to stoke inflation and prompted the Reserve Bank
of India to leave borrowing costs unchanged last month, snapping
a run of three reductions.
- Treasuries Drop With Stocks as Plosser Calls for QE End. Treasuries
erased early gains as Federal Reserve Bank of Philadelphia President
Charles Plosser said the central bank should begin tapering its bond
purchases in September. U.S. stocks turned lower and the dollar
gained. Ten-year U.S. yields rose less than one basis point to 2.58
percent at 11:57 a.m. in New York after losing as much as five points
earlier. The Standard & Poor’s 500 Index (SPA) retreated 0.1
percent after jumping to a record yesterday. The Bloomberg Dollar Index
added 0.4 percent after sliding for two days. Portugal’s bonds and
stocks slid on concern political turmoil will threaten the nation’s
bailout. The Shanghai Composite Index lost 1.6 percent amid concern the
government will tolerate slower growth. Treasuries and stocks turned lower after Plosser, who has opposed the
Fed’s current round of asset purchases, said the central bank should
begin tapering its $85 billion in monthly bond buying in September and
end the unorthodox policy by year-end. “I don’t want to do it all at once, but I think we should begin to taper
very soon and hopefully end it by the end of this year,” Plosser said today in an interview in Jackson Hole, Wyoming. “That would be a healthy thing for the economy. We can do it gradually.”
- UPS(UPS) Cuts 2013 Earnings Forecast on U.S. Economic Slowdown.
United Parcel Service Inc. (UPS), the world’s biggest package delivery
company, cut its 2013 earnings forecast, saying a slowing U.S. economy
hurt second-quarter profit and revenue. The stock dropped the most since
2011. Adjusted earnings fell to $1.13 a share in the second quarter,
marking the first drop in more than three years and missing analysts’
estimate of $1.20, according to data compiled
by Bloomberg. Profit for the year will increase as little as 3
percent, Atlanta-based UPS said in a statement today. UPS fell 5.7 percent to $86.27 at 9:46 a.m. in New York,
after declining as much as 5.8 percent for the biggest intraday
drop since August 2011.
- Copper May Decline 13% on Death Cross Signal: Technical Analysis. Copper
in London may extend losses by 13 percent over the next two months to
the lowest level since 2010 after moving averages formed a death cross,
according to
technical analysis by Trading Central SA. Copper for delivery in three months on the London Metal
Exchange may drop to $6,050 a metric ton, said Ludwig Garric,
head of Commodity Research at the Paris-based company, who
correctly predicted the rally in soybeans to a record last year.
Wall Street Journal:
- Snowden to Seek Asylum in Russia for Now. Leaker to Seek Political Asylum There Until He Can Travel to Latin America.
The fugitive former U.S. government contractor Edward Snowden said
Friday that he would seek political asylum in Russia until he
could find a way to travel to one of several Latin American countries
that have offered him safe harbor.
- Pensions Sue Banks Over Credit-Default Swaps. Lawsuit Alleges Big Lenders Conspired to Fix Pricing, Control Market Access.
Big banks are facing new allegations they conspired to control pricing
and access in the lucrative credit-derivatives markets. Four Danish
pension funds filed a complaint Thursday in U.S. District
Court for the Northern District of Illinois, alleging antitrust
violations and saying the banks "unreasonably restrained competition" in
the $25 trillion credit-default-swaps market.
- China Orders Banks to Register Wealth Management Products. China's banking regulator tightens supervision over fast-growing segment. China's banking regulator has taken further steps to tighten its
oversight of wealth management products by asking banks to register
these products before selling them to the public, according to a
document seen by The Wall Street Journal on Friday.
The new rule would give the regulator increased information on these
high-yield products, though it could slow the speed at which they come
to market, a local banker who received the document said.
MarketWatch:
Zero Hedge:
Business Insider:
LA Times:
Reuters:
Financial Times:
- Jamie Dimon cautions on JPMorgan(JPM) loan profits. Jamie
Dimon, chief executive of JPMorgan Chase, warned of a “dramatic
reduction” in future mortgage profits from higher interest rates and
complained international rivals would benefit from tough US capital
rules, although the bank comfortably beat earnings estimates for the
second quarter.
Telegraph:
- Portugal asks troika to postpone audit. Portugal has called on its international creditors to postpone their
assessment of the heavily indebted country's accounts from July 15 to the
end of August, amid a political crisis.
Style Underperformer:
Sector Underperformers:
- 1) Gold & Silver -2.35% 2) Coal -2.34% 3) Steel -2.01%
Stocks Falling on Unusual Volume:
- TI, S, EVC, RH, MDCO, UPS, KMP, RLD, BA, ENTA, CPHD, FDO, DG, FDX, TCO, BTI, CLFD, SODA, ECYT, CODE, UFS, PCP, BUD, BEAV, GOLD, ACRX and TXI
Stocks With Unusual Put Option Activity:
- 1) MRO 2) MNST 3) TXN 4) UPS 5) BA
Stocks With Most Negative News Mentions:
- 1) VMW 2) TGT 3) SPG 4) C 5) BBBY
Charts:
Style Outperformer:
Sector Outperformers:
- Airlines +1.04% 2) Homebuilders +.88% 3) Semis +.74%
Stocks Rising on Unusual Volume:
- WBMD, ATHN, ALNY, SPRD, INFY, QSII, VVUS, NOW, VLO, DWA, HRB, XLNX, NFLX, DECK, ITMN, SSNC, EW, FFIV, REGN, TA, CALX and EBIX
Stocks With Unusual Call Option Activity:
- 1) KLAC 2) DECK 3) CWH 4) TXN 5) XLNX
Stocks With Most Positive News Mentions:
- 1) XLNX 2) QSII 3) FFIV 4) ALK 5) WEN
Charts:
Evening Headlines
Bloomberg:
- China Finance Chief Lou Says 6.5% Growth Wouldn’t Pose Problem. Chinese
Finance Minister Lou Jiwei said a 6.5 percent economic-growth rate
wouldn’t be a “big problem,” signaling the government may tolerate a
slower pace of expansion than officials have previously indicated.
Lou, speaking yesterday at the U.S.-China Strategic and Economic
Dialogue in Washington, also said he’s confident in achieving a 7
percent growth rate this year. That’s lower than the government’s 2013
target of 7.5 percent, given in March. First-half expansion was probably
below 7.7 percent “but not too far from it,” he said. His comments
suggest China is prepared to allow the economy to slow further from a
pace that’s already at risk of falling to a 23-year low this year as
Premier Li Keqiang’s government focuses on policy changes to create
more-sustainable expansion. The statistics bureau reports second-quarter
gross domestic product on July 15, with the median estimate of analysts
for a 7.5 percent increase from last year. “We don’t think 6.5 percent
or 7 percent will be a big
problem,” Lou said at a press briefing in response to a
question on whether there’s a limit on slower growth that
officials will tolerate. “It’s difficult to give you a limit.
But from the data we have, we have the confidence.”
- Toxic China Lake Incites Next Generation. “My parents were more focused on putting food on the table,” said
Chen, sitting in one of his Mr. Cake shops sporting black Ray-Ban
sunglasses and a Bluetooth headset. “But for us, we’re living very well
and we want a better quality of life. We want the things we’re eating to
be the best, we want the place we’re living in to be the best, we want
the air we’re breathing to be the best.” Chen’s concerns help
explain why China’s new leaders have signaled they are willing to endure
the pain of slower growth as they push a more durable economic model
that buttresses the Communist Party’s legitimacy. The nation is entering
uncharted territory -- navigating the demands of a newly vocal middle
class without the democratic and civil institutions that helped Japan
and the U.S. clean up environmental damage in the 1970s.
- China Swap Rate Rises in Week as PBOC Refrains From Adding Funds. China’s
one-year interest-rate swap climbed this week on speculation the
central bank will refrain from adding funds to markets after inflation
quickened in June. The People’s Bank of China didn’t inject capital
into the financial system this week for the first time since May, data
compiled by Bloomberg show. Consumer prices in Asia’s largest economy
rose 2.7 percent in June from a year earlier, the most
in four months, official figures showed July 9.
- Asian Stocks Extend U.S. Jump on Stimulus as Copper Gains.
Asian stocks rose, with the regional benchmark headed for its biggest
weekly gain since April, on optimism policy makers from the U.S. to
Japan will maintain stimulus. Metals led commodities lower, while the
won climbed. The MSCI Asia Pacific Index added 0.2 percent to 135.39 at 12:31 p.m. in Tokyo.
- Gold Heads for Best Week Since October 2011 on Stimulus Outlook. Spot gold traded at $1,283.62 an ounce by 11:50 a.m. in
Singapore from $1,286.20 yesterday, when prices climbed for a
fourth day to $1,298.73, the highest since June 24. The metal is
poised for a 4.9 percent gain this week. Holdings in the SPDR
Gold Trust, the biggest bullion-backed exchange-traded product,
were unchanged yesterday after declining for four days.
- Rubber Set for First Weekly Loss in Four as Yen Reduces Appeal.
Rubber declined, heading for the
first weekly loss in four, after Japan’s currency rebounded,
weakening the appeal of yen-denominated futures. Rubber for delivery in
December on the Tokyo Commodity Exchange lost as much as 1.2 percent to
242.2 yen a kilogram ($2,440 a metric ton) after settling yesterday at
the highest level since July 5. Futures traded at 242.7 yen at 10:33 a.m.,
extending losses for this week to 1 percent.
- Draghi
Impotent as Fed Trumps ECB on Yield Curve: Euro Credit. The widest gap
between two- and 10- year German yields in more than a year suggests the
European Central Bank is struggling to protect the region's economy
from a U.S.-led surge in borrowing costs. "The steeper yield curve in
the euro area effectively means an increase in funding costs for both
sovereign and corporate borrowers without an associated change in
inflation or growth," said Lyn Graham-Taylor, a fixed-income strategist
at Rabobank Intl. in London.
- Loose Lips Sink Euro Bond Markets in Crisis: Cutting Research. Loose
lips can cost Europe’s bond markets. A European Central Bank paper
released last week used 25,000 news media releases between January 2009
and October 2011 to investigate how much political communications
affected sovereign bond yields during the region’s fiscal crisis.
The ECB study focused on public pronouncements on fiscal policy and
state finances by officials. It found in the short term that certain
types of commentary had a quantifiable effect on the spread between the
bond yields of Greece, Ireland and Portugal over German bunds. The
impact was biggest for Greece.
- Cross-Border Swaps Deal to End U.S.-Europe Regulation Overlap. U.S. and European Union financial regulators took a step
toward bringing derivatives trading under an integrated framework of
global regulation designed to reduce risks in the $633 trillion swaps
market. The accord, announced jointly yesterday in Brussels and
Washington by the EU and the U.S. Commodity Futures Trading Commission,
broke a deadlock over whether the U.S. could impose its rules on trades
booked in Europe. Banks and other swaps traders said the deal reduces
the chance they will be forced to comply with conflicting regulatory
regimes. “This shows that the CFTC recognizes that other
countries and other jurisdictions have equally made a lot of progress
and that they have to recognize those rules,” Ken Bentsen, president of
the Securities Industry and Financial Markets Association, said in a
telephone interview. “The devil’s in the details. But it would appear to
be a shift in a positive way.”
- Mortgage Applications for New U.S. Homes Dropped 15% in June. Loan applications for purchases of
new U.S. homes tumbled last month, a sign rising mortgage rates
may have damped demand for builders, according an index released
today by the Mortgage Bankers Association. The Builder Application Survey showed a 15 percent decline
in loan submissions in June from the previous month, the
Washington-based group said in a statement. The newly created
gauge tracks application volume predominantly from mortgage
units of large homebuilders across the country. The survey may be an indicator of new-home sales, since the
mortgage application is typically made around the time the sales
contract is signed, said Michael Fratantoni, vice president of
research and economics at the Mortgage Bankers Association. A
jump in mortgage rates, spurred by expectations that the Federal
Reserve will reduce its stimulus program, has sparked concern
that housing demand will weaken as buying costs increase.
- Obama Gets Negative Marks From Voters Upset With Policies. The Quinnipiac University survey showed 48 percent of respondents disapproving of Obama’s job performance and 44
percent approving, virtually unchanged from the 49 percent
negative rating and 45 percent positive mark for him in a May
poll. In an April poll, Obama was given a positive grade by 49
percent and a negative one by 45 percent.
Wall Street Journal:
- Spain Prepares Cuts in Renewable-Energy Subsidies. Moving to Curb the Threat to Public Coffers, the Government
Will Estimate Projects' 'Reasonable Profitability'. Spain is preparing cuts in subsidies for renewable-energy production
in an attempt to diminish their threat to public coffers, according to
people familiar with an industry overhaul expected to be announced as
early as Friday. They said the government would unveil a more complex formula for
determining the guaranteed income that producers receive for the
electricity they generate from wind- and solar-energy projects. That
formula would be based on the government's estimate of a level of
"reasonable profitability" for each project, depending on several
factors including its age, cost, and the amount of subsidies it has
already received.
- Hospitals Prescribe Big Data To Track Doctors at Work. Technology is making it easier to monitor doctors' work as patients'
details are compiled electronically instead of on paper charts. Software
makers are selling new tools to crunch the data. Software called
Crimson offered by the Advisory Board Co. ABCO +3.55% now includes
information on more than a half-million doctors, up from fewer than
50,000 in 2009.
- U.S., Firms Draw a Bead on Chinese Cyberspies. The U.S. government gave American Internet providers addresses linked
to suspected Chinese hackers earlier this year as part of a previously
undisclosed effort aimed at blocking cyberspying, current and former
U.S. officials said. The push reflects a significant shift in levels of cooperation
between the government and Internet companies amid rising concerns over
hacking. It also marks a bold move by the U.S. as it takes part in
high-level meetings on cybersecurity and other matters with the Chinese
this week in Washington. Each side accuses the other of cyberespionage.
Fox News:
MarketWatch.com:
CNBC:
- ECB's Constancio Sees Long Period of Slow Euro Zone Growth. The euro zone is likely to see an extended period of slow economic
growth and European Central Bank's policy will have to stay loose for a
long time, ECB Vice-President Vitor Constancio said on Friday. Constancio,
in the text of a speech to be given in Singapore, also criticized the
European Commission's proposal for shutting down failing banks, saying
that the planned authority should be given access to a public credit
line.'
- US Senators Introduce Bill to Break Up Megabanks. A small bipartisan group of U.S. senators on Thursday introduced
legislation that would break up Wall Street's megabanks by separating
traditional banking activity from riskier financial services.
Zero Hedge:
Business Insider:
New York Times:
- Consumer Frugality Adds to Woes in France. “It used to be elbow to elbow here,” said Hamidou Debo, a shoe vendor
who sat quietly in his outdoor stall as a handful of people browsed
through silver-hued sandals and black leather high-tops before shuffling
away without buying. “Now the crowds are around half what they used to
be.” For Mr. Debo and 2,500 other merchants in the 17-acre market on the
northern edge of Paris, an economic slowdown has gripped business, and
there is no telling when things might turn around. Last year, he said,
he regularly made 300 to 400 euros, or $390 to $520, in sales by
lunchtime. Now he barely makes 100 euros.
Reuters:
- Bomb, gun attacks across Iraq kill at least 44. Bombers
and gunmen attacked policemen and a wake in Iraq among other targets,
killing at least 44 people across the country on Thursday, in the latest
burst of violence that has raised concerns about a return to civil
strife.
Gunmen opened fire on two checkpoints guarding oil installations on the
road between Haditha and Baiji, 180 km (111 miles) north of the
capital, killing 11 people, police said.
In the town of Muqdadiya, 80 km northeast of Baghdad, a further 11
people were killed when a car bomb exploded at a wake. As survivors
gathered to evacuate the wounded, a suicide bomber blew himself up,
police said.
- Google's(GOOG) Schmidt says relationship with AppleAAPL) has improved. The
relationship between Google Inc and Apple Inc has improved over the
past year with the rival technology companies and sometimes partners
conducting "lots and lots" of meetings, Google Executive Chairman Eric
Schmidt said. Schmidt did not provide details about the nature of
the meetings during comments to reporters at the annual Allen and Co
media
conference in Sun Valley, Idaho on Thursday. He noted that Google Chief
Business Officer Nikesh Arora, who joined him at the press briefing, was
leading many of the discussions. The two companies are in
"constant business discussions on a long list of issues," Schmidt said.
- Ford(F) says auto industry needs more Europe output cuts. Ford
Motor Co's European chief Stephen Odell on Thursday said that the
industry production cuts of 1.5 million to 2 million vehicles in Europe
that have occurred or are announced still leave output well above demand. Ford estimates that Europe's auto industry, after those cuts
are realized, will still be making at least 4 million vehicles a
year - more than market demand. Ford expects to lose $2 billion in Europe in 2013.
- Valero(VLO) sees lower Q2 earnings as costs rise.
U.S. refining company Valero Energy Corp on Thursday said it expects
lower second-quarter earnings as the price of some of the crude oil it
processes rose. Shares of Valero fell 4 percent to $33.15 after the close of
regular trading.
- U.S. Fed balance sheet grew in latest week. The U.S. Federal Reserve's
balance sheet grew in the latest week as the U.S. central bank
added to its holdings of Treasury debt, Fed data released on
Thursday showed.
The Fed's balance sheet liabilities, which are a broad gauge
of its lending to the financial system, stood at $3.462 trillion
on July 10, compared with $3.450 trillion on July 3.
Telegraph:
- China’s great economic leap forward hits the wall. This was supposed to be the Asian century, but the Eastern boom is dying of
exhaustion.
So here’s how it looks. Years of unsustainable, credit-fuelled growth are
brought to a halt by a crushing financial crisis which exposes deep
structural flaws at the heart of the economy. Rarely has the assumption of
ever-rising living standards looked so vulnerable, with younger generations
forced to pay not just for the crippling legacy of debt their parents leave
behind, but for the mounting costs of an ageing population and the
consequences of decades-long environmental degradation. Economic decline,
austerity and inter-generational recrimination seem to beckon as populations
adjust to the true mediocrity of their circumstances.
Yomiuri:
- Tepco
Fukushima Plant's Cesium-137 Levels Above Limit. Tepco detected level
of radioactive Cesium-137 near Fukushima Dai-Ichi No. 3 reactor's
turbine building was ~1m times higher than the regulatory limit, citing
co.
Shanghai Securities News:
- China Should Not Artificially Stimulate Growth. Ba Shusong, a
researcher at the State Council Development Research Center, said China
should not artificially stimulate economy for the time being, citing
Ba's speech at a meeting. Stimulus will only lead to asset bubbles, Ba
said. 2Q GDP growth will slow to .4% and the trend of slowdown will
continue for the next few months, citing Ba.
Evening Recommendations
Morgan Stanley:
- Cut Wynn Macau to Underweight, target HK$22.
Night Trading
- Asian equity indices are -.50% to +.50% on average.
- Asia Ex-Japan Investment Grade CDS Index 146.0 -10.5 basis points.
- Asia Pacific Sovereign CDS Index 110.0 -8.75 basis points.
- NASDAQ 100 futures -.08%.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
8:30 am EST
- The Producer Price Index for June is estimated to rise +.5% versus a +.5% gain in May.
- The PPI Ex Food & Energy for June is estimated to rise +.1% versus a +.1% gain in May.
9:55 pm EST
- Preliminary Univ. of Mich. Consumer Confidence for July is estimated to rise to 84.7 from 84.1 in June.
Upcoming Splits
Other Potential Market Movers
- The
Fed's Williams speaking, Fed's Bullard speaking, Fed's Plosser
speaking, Eurozone Industrial Production data and the BoJ Economic
Situation report could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by commodity and technology shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.
Broad Equity Market Tone:
- Advance/Decline Line: Substantially Higher
- Sector Performance: Almost Every Sector Gaining
- Market Leading Stocks: Outperforming
Equity Investor Angst:
- Volatility(VIX) 13.90 -2.18%
- Euro/Yen Carry Return Index 134.99 +.17%
- Emerging Markets Currency Volatility(VXY) 10.49 +.48%
- S&P 500 Implied Correlation 51.36 +2.01%
- ISE Sentiment Index 61.0 -14.08%
- Total Put/Call 1.05 +2.94%
Credit Investor Angst:
- North American Investment Grade CDS Index 77.98 -4.14%
- European Financial Sector CDS Index 154.66 -2.09%
- Western Europe Sovereign Debt CDS Index 96.09 +.10%
- Emerging Market CDS Index 323.86 -3.86%
- 2-Year Swap Spread 17.0 unch.
- 3-Month EUR/USD Cross-Currency Basis Swap -9.75 unch.
Economic Gauges:
- 3-Month T-Bill Yield .03% unch.
- China Import Iron Ore Spot $125.20/Metric Tonne +1.05%
- Citi US Economic Surprise Index -11.90 -1.7 points
- Citi Emerging Markets Economic Surprise Index -31.70 +2.0 points
- 10-Year TIPS Spread 2.03 -2 bps
Overseas Futures:
- Nikkei Futures: Indicating +137 open in Japan
- DAX Futures: Indicating +36 open in Germany
Portfolio:
- Higher: On gains in my tech, retail, medical and biotech sector longs
- Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short
- Market Exposure: Moved to 75% Net Long
