North American Investment Grade CDS Index 103.25 bps -.24%
European Financial Sector CDS Index 111.83 bps -4.09%
Western Europe Sovereign Debt CDS Index 151.84 bps -.74%
Emerging Market CDS Index 249.77 bps -1.08%
2-Year Swap Spread 20.0 unch.
TED Spread 16.0 unch.
Economic Gauges:
3-Month T-Bill Yield .13% unch.
Yield Curve 223.0 +3 bps
China Import Iron Ore Spot $139.70/Metric Tonne -.21%
Citi US Economic Surprise Index -16.90 +.4 point
10-Year TIPS Spread 1.82% +7 bps
Overseas Futures:
Nikkei Futures: Indicating +26 open in Japan
DAX Futures: Indicating -1 open in Germany
Portfolio:
Slightly Higher: On gains in my Biotech, Retail and Medical long positions
Disclosed Trades: None
Market Exposure: 75% Net Long
BOTTOM LINE: Today's overall market action is mildly bullish as the S&P 500 is trading near session highs despite tech sector weakness. On the positive side, Education, Oil Service and Defense shares are especially strong, rising 1.25%+. The 10-year yield is rising +4 bps to 2.80%. The Spain sovereign cds is dropping -3.22% to 226.90 bps. The total put/call is high at 1.25. On the negative side, Wireless, Semi, Computer, Steel, Utility, Alt Energy, Bank and Disk Drive shares are down on the day. Small-caps are underperforming. (XLF) has also underperformed throughout the day. Copper is falling -.97%. The Greece sovereign cds is rising +1.02% to 919.49 bps. Breadth is mediocre and volume is very light again today. Developing weakness in the tech sector is a concern. With much more economic data on tap and investors returning from vacation next week, a more clear picture of the market's health should develop. I expect US stocks to trade mixed-to-lower into the close from current levels on profit-taking, technical selling, eurozone bank worries and increasing terrorism fears ahead of 9/11.
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