U.S stock futures are trekking north this morning, as Wall
Street awaits a day chock-full of market-moving news. On the
domestic front, unemployment claims will take the spotlight, ahead
of tomorrow's delayed nonfarm payrolls report. Anticipation is
high, as yesterday's
promising ADP payrolls report
stoked a fresh round of bullish sentiment. Across the pond, fears
that
any snags in Greece's debt swap
could cause a disorderly default for the fiscally strapped nation
have been seemingly contained, with roughly 60% of private
investors indicating they will participate in the write-downs.
Against this optimistic backdrop, all three major market indexes
are on pace to continue with
yesterday's positive price action
.
In earnings news, Hot Topic (HOTT - 8.79) swung to an adjusted
fourth-quarter profit of $9 million, or 21 cents per share, from
its year-ago loss of $5.1 million, or 12 cents per share. The
company attributed this increase to a 3.2% climb in gross margins,
as its cost-cutting efforts have started to gain traction.
Meanwhile, net sales fell 1.2% to $209.9 million, despite a 1.3%
rise in same-store sales. The results surpassed analysts'
predictions for a profit of 20 cents per share on sales of $209.3
million. Looking ahead, HOTT is forecasting first-quarter earnings
of 2 cents to 5 cents per share, while Wall Street is predicting
that the retailer will break even. HOTT is up 7% in pre-market
trading.
The Men's Wearhouse, Inc. (MW - 40.18) said its fourth-quarter
loss narrowed to $3.8 million, or 7 cents per share, from last
year's deficit of $14.1 million, or 27 cents per share, on fewer
charges and higher domestic pricing. Excluding items, MW posted a
slimmer loss of 5 cents per share. A 9.3% jump in same-store sales
at the haberdasher's eponymous stores helped overall revenue
improve 3.7% to $562.2 million. The results were mixed, with Wall
Street predicting a loss of 13 cents per share on $563.2 million in
sales. The Texas-based retailer is calling for current-quarter
earnings of 53 cents to 54 cents per share, with analysts
projecting a bolder per-share profit of 62 cents.
On the heels of last week's blowout
same-store sales
report, Buckle (BKE - 47.88) today unveiled a fourth-quarter profit
of $56.1 million, or $1.18 per share -- up 13% from last year's
earnings of $49.5 million, or $1.05 per share. Sales for the
quarter improved 11% to $337.1 million, as online sales increased
31% to $27.6 million. The report was stronger than expected, with
consensus estimates calling for a profit of $1.14 per share on
$335.2 million in sales. BKE is trading 0.3% higher ahead of the
bell.
Earnings Preview
Today's earnings docket will also feature reports from
Aeropostale (
ARO
), Altera (
ALTR
), Anheuser Busch-InBev (
BUD
), Canadian Natural Resources (
CNQ
), Dynegy (
DYN
), Eagle Bulk Shipping (EGLE), Emergent BioSolutions (EBS), Fuel
Systems Solutions (FSYS), JinkoSolar (JKS), Kirkland's (KIRK),
Quiksilver (ZQK), Renren (RENN), Smith & Wesson (SWHC),
Smithfield Foods (SFD), Suntech Power (STP), and Williams-Sonoma
(WSM). Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
We'll hear the regularly scheduled update on initial
unemployment claims today. Tomorrow, the week wraps up on a busy
note, with the delayed release of the Labor Department's nonfarm
payrolls report for February, as well as the latest unemployment
rate, the trade deficit, and wholesale inventories.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 965,535 call contracts traded on Wednesday, compared to
907,120 put contracts. The resultant single-session put/call ratio
arrived at 0.63, while the 21-day moving average was 0.64.
Overseas Trading
Asian markets ended higher today, collecting their first daily
win this week. Traders cheered an apparently strong commitment to
Greece's debt swap among major bondholders, as well as the prospect
of additional monetary easing by the U.S. Fed. Tech stocks also
gained ground, with suppliers for Apple's (AAPL) newly launched 4G
iPad leading the way. Meanwhile, over in China, insurers and
resource issues recovered from steep losses earlier in the week. By
the close, Japan's Nikkei jumped 2%, Hong Kong's Hang Seng gained
1.3%, China's Shanghai Composite advanced 1.1%, and South Korea's
Kospi rose 0.9%.
Bulls have also taken the reins in Europe, where the Bank of
England and European Central Bank have both opted to keep interest
rates at their current record lows. Traders are optimistic that
Greece will be able to pull off its massive restructuring
initiative, with Bloomberg reporting that creditors holding 60% of
the country's eligible debt are ready to participate. Among
individual equities, EADS is on the upswing in Paris after the
aerospace giant unveiled stronger-than-expected fourth-quarter
earnings, and provided a promising forecast for fiscal 2012. At
last check, the German DAX is up 2.1%, France's CAC 40 has surged
2%, and London's FTSE 100 is 1.3% higher.
Currencies and Commodities
The greenback is trading lower this morning, with the U.S.
dollar index down 0.6% at $79.27. Crude oil, on the other hand, is
up 0.8% to flirt with $107 per barrel. Gold futures are on pace to
tack on additional gains
, with the malleable metal last seen 1% higher at $1,701 an
ounce.
Unusual Put and Call Activity:
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Education Center
topics on
Option Volume
and
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.
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