Wall Street's nerves are rattled this morning, as global
economic fears have taken the forefront. With
China's downwardly revised growth target
, and a greater-than-anticipated contraction in the
euro-zone purchasing managers index (PMI)
still fresh in traders' minds, all three major market indexes
are set to continue their trek into the red
. Adding to the negative mood are concerns that not enough private
creditors will participate in Greece's impending bond swap, putting
the struggling nation once again at risk for default. The debt
holders have until Thursday to consent to a 53.5% haircut on their
Greek bonds. Against this skittish backdrop, the Dow Jones
Industrial Average (DJIA) is set to plunge 70 points right out of
the gate, while the broader S&P 500 Index is looking at a
9-point drop.
In earnings news, Dick's Sporting Goods (DKS - 45.57) raked in a
fourth-quarter profit of $111.1 million, or 88 cents per share, up
from last year's earnings of $87.5 million, or 71 cents per share.
Meanwhile, revenue improved 6.1% to $1.61 billion, as a decline in
same-store sales at brick-and-mortar Dick's locations was offset by
strength in the retailer's online business. The results fell right
in line with analysts' expectations. For the full fiscal year, DKS
anticipates a profit of $2.38 to $2.41 per share, compared to the
consensus estimate of $2.40 per share. DKS is 2.4% lower ahead of
the bell.
Elsewhere, VeriFone Systems (PAY - 46.55) reported a fiscal
first-quarter loss of $3.1 million, or 3 cents per share, down from
its profit of $32.0 million, or 35 cents per share, in the
comparable quarter of 2011. Excluding items, earnings came in at 58
cents per share, while revenue rose by 49.7% to $425.2 million.
Analysts, on average, were expecting a profit of 52 cents per share
on sales of $417.5 million. Looking ahead, the company raised its
full-year earnings forecast to a range between $2.60 and $2.66 per
share, up from its earlier guidance of $2.53 to $2.60 per share.
PAY is up 0.5% in pre-market trading.
Finally, NutriSystem, Inc. (NTRI - 11.88) swallowed a
fourth-quarter loss of $1.2 million, or 4 cents per share, versus
last year's profit of $7.1 million, or 25 cents per share. Revenue
for the quarter fell to $66.9 million, down 24% from $87.9 million
in the year-ago quarter. The results were mixed, as analysts were
calling for a slimmer loss of 2 cents per share on $64.4 million in
sales. Going forward, NTRI is calling for a current-quarter loss of
5 cents to 10 cents per share, compared to Wall Street's
expectations for earnings of 10 cents per share. NTRI is set to
drop 11% right out of the gate.
Earnings Preview
Today's earnings docket will also feature reports from
AeroVironment (
AVAV
), Analogic (
ALOG
), Chesapeake Utilities (
CPK
), MAKO Surgical (
MAKO
), Pandora Media (
P
), Shuffle Master (SHFL), STAAR Surgical (STAA), United Natural
Foods (UNFI), and Vail Resorts (MTN). Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
While there are no economic reports of note today, Wednesday's
jam-packed docket brings us weekly crude inventories, ADP's
private-sector payrolls figure for February, fourth-quarter
productivity, and the Federal Reserve's consumer credit report.
Jobs data continues to trickle in on Thursday, when we'll hear the
regularly scheduled update on initial unemployment claims. We'll
wrap up the week 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 991,630 call contracts traded on Monday, compared to
727,007 put contracts. The resultant single-session put/call ratio
arrived at 0.73, while the 21-day moving average was 0.62.
Overseas Trading
Asian markets finished south of breakeven today, as Monday's
softer growth forecast from China applied pressure to stocks across
the board. Steel and aluminum issues were among the hardest hit,
with traders pricing in expectations for lower infrastructure
spending from the key emerging economy. Meanwhile, insurance
company AIA Group continued to struggle in Hong Kong, after
American International Group (AIG) priced its stock offering at the
low end of its projected range. By the close, Hong Kong's Hang Seng
lost 2.2%, China's Shanghai Composite fell 1.4%, South Korea's
Kospi declined 0.8%, and Japan's Nikkei shed 0.6%.
European equities are also in the red, with resource stocks and
automakers leading the way amid anxiety over China's tamer economic
forecast. Traders are also on edge ahead of the Thursday deadline
for Greece's private bond holders to participate in a debt
restructuring swap, as any snags in the process could endanger the
country's bailout funding. At last check, France's CAC 40 is down
1.5%, the German DAX is 1.4% lower, and London's FTSE 100 is off
1%.
Currencies and Commodities
The U.S. dollar index has gained momentum this morning, with the
greenback last seen 0.5% higher at $79.71. Conversely, crude oil is
in retreat mode, with the front-month contract down 0.5% to trade
at $106.19 per barrel. Gold futures
continue to pull back
, with the malleable metal 0.9% lower at $1,689.30 an ounce.
Unusual Put and Call Activity:
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