After what can only be characterized as a volatile week, today
is probably not going to be much different. There are several key
economic reports due out today, notably July retail sales and
August consumer confidence. Analysts are expecting consumer
confidence to fall to a reading of 62 in August from 63.7 in July.
However, today's consumer confidence report will not reflect
Friday's S&P downgrade -- so it seems that things will
ultimately get worse before they get better. Ahead of today's
reports, futures on the Dow Jones Industrial Average (DJIA ) and
S&P 500 Index (SPX ) are trading just a few points above fair
value.
In earnings news... Nvidia (NVDA - 13.41) swung to a
second-quarter profit of $151.6 million, or 25 cents per share --
neatly reversing its year-ago loss of $141 million, or 25 cents per
share. Excluding items, NVDA earned 32 cents per share, while
revenue climbed 25% to $1.02 billion. Analysts, by contrast, were
expecting a profit of 25 cents per share on $1.01 billion in
revenue. Looking ahead, NVDA predicted third-quarter revenue to
arrive between $1.06 billion and $1.08 billion, north of Wall
Street's forecast for $1.05 billion. Ahead of the open, NVDA is up
nearly 13%.
Nordstrom (JWN - 42.33) banked a second-quarter profit of $175
million, or 80 cents per share, up 20% from its year-ago earnings
of $146 million, or 66 cents per share. Revenue for the period
improved 12% to $2.81 billion, boosted by a 7.3% gain in same-store
sales. Wall Street was looking for a profit of 74 cents per share
on $2.7 billion in revenue. For the full year, Nordstrom upped its
earnings forecast to a range between $2.95 and $3.10 per share,
thanks to stronger-than-anticipated same-store sales trends. The
consensus estimate among analysts currently stands at $3.05 per
share.
Finally, DeVry Inc. (DV - 53.39) reported a fourth-quarter
profit of $75.2 million, or $1.08 per share, compared to $71.6
million, or 99 cents per share, in the year-ago period. Meanwhile,
revenue for the quarter rose 8% to $546.70 million. Analysts had
estimated a slimmer profit of $1.03 per share on revenue of $546
million. Chief Executive Officer Daniel Hamburger expressed
displeasure with the results, explaining, "We were not satisfied
with our short-term enrollment performance this quarter as total
students declined to around 119,000." The CEO went on to explain
that the recent regulations on for-profit institutions, along with
the struggling economy, have had an adverse effect on enrollment.
Traders are not pleased with this news, with the shares down 8.8%
ahead of the open.
Earnings Preview
Today's earnings docket will feature reports from J.C. Penney (
JCP
), Century Casinos (
CNTY
), Mentor Graphics (
MENT
), and Tree.com (
TREE
). Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
Aside from the aforementioned retail sales report for July and
Reuters/University of Michigan consumer sentiment index for August,
today's agenda also features a report on June's business
inventories.
Market Statistics
Equity option activity on the Chicago Board Options Exchange (
CBOE
) saw 1,485,474 call contracts traded on Thursday, compared to
930,061 put contracts. The resultant single-session put/call ratio
arrived at 0.63, while the 21-day moving average was 0.73.
The summer 2011 issue of
SENTIMENT
magazine is now available here.
Overseas Trading
Asian markets ended mixed today, with automakers and other
exporters taking a hit amid ongoing concerns about the health of
the global economy. However, Canon bucked the downtrend in Tokyo
after unveiling a healthy stock buyback program. On the other hand,
energy issues led the path higher in China, where stocks racked up
their third straight winning session. By the close, South Korea's
Kospi lost 1.3%, Japan's Nikkei declined 0.2%, Hong Kong's Hang
Seng added 0.1%, and China's Shanghai Composite added 0.5%.
Banking stocks are leading the charge in Europe, with markets
firmly higher at midday. Regulators in France, Italy, Belgium, and
Spain have now banned short selling in an attempt to curb
out-of-control volatility, and beaten-down financial names have so
far been the primary beneficiaries of this move. At last check, the
German DAX is up 2.2%, the French CAC 40 has gained about 2%, and
London's FTSE 100 is 1.5% higher.
Currencies and Commodities
Crude futures are trading slightly lower this morning, giving
back a portion of Thursday's gains. Oil ended yesterday's session
at its highest level all week, as bulls cheered an upbeat report on
jobless claims. Ahead of the open, crude futures are trading 0.1
point, or 0.2%, lower. Conversely, gold has edged higher this
morning, bouncing back after Thursday's news that CME Group had
increased its margin requirements. This news sparked a sell-off on
gold, but this morning, gold futures have rebounded 4.7 points, or
0.3%, to hover around $1,756.20 an ounce. Finally, the U.S. dollar
index is down 0.1 point, or 0.2%, as U.S. investors await today's
slew of economic reports.
Unusual Put and Call Activity:
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topics on
Option Volume
and
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.
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