After
struggling to find a direction yesterday
, bulls have grabbed the reins heading into today's session, with
futures on all three major market indexes trading north of
breakeven. The slew of domestic economic reports slated to hit the
Street are driving the optimism, with traders eyeing key
manufacturing data and weekly jobless claims for additional signs
of an improving economy. With the stars seemingly aligning, the Dow
Jones Industrial Average (DJIA) is
seeking its seventh consecutive win
, while the broader S&P 500 Index (SPX) is on pace to shake off
yesterday's modest pullback. At last check, the SPX is set to jump
5 points right out of the gate.
In earnings news, Guess, Inc. (GES - 36.70) said its fiscal
fourth-quarter profit landed at $98.4 million, or $1.05 per share,
a 7.2% year-over-year drop from $105.4 million, or $1.11 per share.
Revenue saw a slight 2.5% rise to $775.8 million. The bottom-line
results were in line with analysts' expectations, while revenue
fell just shy of the $778.5 million called for by the Street. For
the current quarter, GES forecast a per-share profit of 25 cents to
28 cents on revenue ranging between $560 million and $575 million,
well below Wall Street's projection for earnings of 48 cents per
share on $609.7 million in sales. GES is trading 11% lower ahead of
the bell.
Vera Bradley (VRA - 37.14) banked a fiscal fourth-quarter profit
of $20.1 million, or 50 cents per share, up 41% from $14.2 million,
or 35 cents per share, in the year-ago period. Meanwhile, revenue
climbed by 23% to $134.5 million, boosted by a 9.3% increase in
same-store sales. Analysts, on average, were expecting earnings of
47 cents per share on sales of $130.0 million. Looking ahead, the
accessories designer is forecasting a first-quarter profit of 27
cents to 29 cents per share, with revenue ranging between $115
million and $117 million. Wall Street, however, is predicting
earnings of 32 cents per share on sales of $117 million. VRA is
down 6% in pre-market trading.
Finally, Winnebago Industries (WGO - 8.90) swallowed a fiscal
second-quarter loss of $912,000, or 3 cents per share, down from
its year-ago profit of $3.3 million, or 11 cents per share. Revenue
for the quarter improved 24% to $131.6 million, but WGO's bottom
line was dented "by increased discounts and continued aggressive
pricing strategies." Analysts were expecting a profit of 2 cents
per share on $120.1 million in revenue. WGO is looking to start the
session with a 0.2% drop.
Earnings Preview
Today's earnings docket will also feature reports from AMC
Networks (
AMCX
), Casual Male Retail (
CMRG
), Cato (
CATO
), dELiA's (
DLIA
), Pharmacyclics (
PCYC
), TravelCenters of America (TA), Dole Food (DOLE), and Primo Water
(PRMW). Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
Today's round-up will include weekly jobless claims, the Empire
State manufacturing index, the Philadelphia Fed's manufacturing
index, and the producer price index (PPI). The week wraps up on
Friday with the consumer price index (CPI), industrial production
and capacity utilization, and the Thomson Reuters/University of
Michigan consumer sentiment index for mid-March.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,606,379 call contracts traded on Wednesday, compared
to 898,903 put contracts. The resultant single-session put/call
ratio arrived at 0.61, while the 21-day moving average was
0.64.
Overseas Trading
Stocks in Asia ended mixed today, tracking Wednesday's
hot-and-cold finish on Wall Street. Japanese exporters gained
ground as the dollar strengthened against the yen, with Mazda,
Honda, and Canon among the notable beneficiaries. On the other
hand, developers continued to struggle in China, after Premier Wen
Jiabao reaffirmed the government's commitment to property curbs
earlier this week. By the close, Japan's Nikkei rose 0.7%, Hong
Kong's Hang Seng added 0.2%, South Korea's Kospi retreated 0.06%,
and China's Shanghai Composite gave up 0.7%.
Meanwhile, European equities are relatively flat at midday, with
traders on pins and needles ahead of U.S. employment and
manufacturing data due out later in the session. Auto stocks are a
pocket of weakness, after an industry group said the euro zone's
car market contracted by 11.8% in February. London-listed equities
are also struggling, as Fitch lowered its outlook on the U.K.'s
triple-A credit rating to negative -- suggesting a downgrade is not
out of the question. At last look, London's FTSE 100 is 0.09%
lower, the French CAC 40 is down 0.01%, and the German DAX has
tacked on 0.3%.
Currencies and Commodities
The U.S. dollar index is pulling back this morning, after
gaining momentum on the
Fed's unchanged monetary policy
. At last check, the greenback was trading 0.1% lower at $80.46.
Conversely, crude oil
is on the rebound
, with the front month contract up 0.1% at $106.06 per barrel. Gold
futures are on the mend, as well, with the malleable metal 0.3%
higher at $1,647.50 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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