8 Market-Moving Stories Credit Suisse Is Watching Monday

Jayson Derrick
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  • Analysts at Credit Suisse recently discussed eight market moving stories.
  • Of note, the S&P 500 index bounced higher from its overnight lows, but then sold off during the trading session.
  • The markets were trading near flat early Monday afternoon.

    • Analysts at Credit Suisse discussed eight observations they have seen during Monday's trading session.

    1. S&P Futures

    S&P Futures bounce off overnight lows. S&P e-mini Futures flirted with the 2058 mark before rebounding higher by eight handles on M&A activity, no earnings "blow ups" and shares of Valeant Pharmaceuticals Intl Inc (NYSE: VRX) rebounding during the company's conference call.

    2. Market Sells Off

    After opening higher, most indices traded lower on: 1) weak home sales data, 2) Apple Inc. (NASDAQ: AAPL) and semiconductor weakness from DIALOG SEMICON ORD (OTC: DLGNF)'s earnings report semi read-through in Germany and 3) chatter of $13 billion of equities for sale heading into the end of the month as equities outperformed fixed income.

    Related Link: U.S. Stock Futures Edge Lower Ahead Of New Home Sales, Dallas Fed Manufacturing Data

    3. Near-Flat Trading Rebound

    Market rebounds to trade near flat. Healthcare stocks gained following Valeant's conference call, while Internet stocks gained as Chinese ADRs led the way.

    4. Hedge Fund Returns

    There's been a huge dispersion of October hedge fund returns. The analysts suggested that October could see elevates, or even an all-time high dispersion of monthly returns for equity long and short hedge funds.

    5. Dallas Fed Manufacturing

    Dallas Fed Manufacturing read -12.7, while the expected number was -9.5. Meanwhile, Richmond Fed survey will be released Tuesday.

    6. Monetary Policy

    Monetary policy remains in focus. Last week, the European and Chinese central banks were in focus, but now the Bank of Japan may face pressure to further ease its monetary policy.

    7. S&P Skew

    The S&P skew has fallen to the 28th percentile.

    8. Technical Levels

    Technical levels are in focus as the S&P 500 (December) extended its break above the key resistance level of 2033/54 to test the 78.6 percent retracement barrier at 2069. Extension above these levels put the 2103/08 level in focus. Support moves to 2058 ahead of price and 200-day average support at 2054/53.

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