U.S. stocks are following European markets higher this morning,
extending yesterday's
eleventh-hour bounce
. A lightly populated Wall Street will soon digest the latest batch
of economic data, with weekly jobless claims, gross domestic
product (
GDP
) estimates, and consumer confidence stats on tap. In the meantime,
a handful of companies have stepped into the earnings confessional,
with Bed Bath & Beyond (
BBBY
) and Micron Technology (
MU
) among the notables in the spotlight today. At last check, the Dow
Jones Industrial Average (DJIA) and S&P 500 Index (SPX) are
poised to add to their weekly gains of 2%.
On the earnings front, Bed Bath & Beyond (BBBY - 61.43)
reported third-quarter earnings of $228.5 million, or 95 cents per
share, representing a 21% rise over last year's earnings of $188.6
million, or 74 cents per share. Revenue improved 6.8% on a
year-over-year basis to $2.34 billion. The bottom-line results came
in better than expected, as analysts were forecasting earnings of
88 cents per share on $2.35 billion in sales. Looking forward, BBBY
is anticipating a fourth-quarter profit of $1.28 to $1.33 per
share, and increased its full-year outlook to a range between $3.86
and $3.92 per share. By comparison, analysts are calling for
fourth-quarter earnings of $1.30 per share, and fiscal 2011
earnings of $3.83 per share. In pre-market trading, BBBY is down
3%.
After the close last night, Micron Technology (MU - 5.54)
reported a fiscal first-quarter loss of $187 million, or 19 cents
per share, down from its profit of $155 million, or 15 cents per
share, in the year-ago period. Meanwhile, net sales fell 7.2% to
$2.09 billion, due to a 12% decline in average selling prices for
DRAM chips, and a 10% drop in prices for NAND flash memory chips.
Analysts, on average, were expecting a loss of just 7 cents per
share on revenue of $2.13 billion. At last look, MU is set to open
1.6% higher.
In equities news, Akamai Technologies (AKAM - 26.67) agreed to
acquire Cotendo Inc., which makes mobile-network acceleration
software, for roughly $268 million in cash. AKAM expects the deal
to close in the first half of 2012. "As we look to accelerate
growth across the dynamic landscapes of cloud and mobile
optimization, we are excited to be joining forces with Cotendo,"
said Akamai President and CEO Paul Sagan. Ahead of the bell, AKAM
is 0.4% higher.
Earnings Preview
Today's earnings docket will feature reports from American
Greetings (
AM
), Neogen (
NEOG
), CalAmp (CAMP), and Christopher & Banks (CBK). Keep your
browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
The economic calendar heats up with the release of the weekly
jobless figures, the Thomson Reuters/University of Michigan
consumer sentiment index, the Conference Board's index of leading
economic indicators, and the government's latest estimate on
third-quarter GDP. Finally, we head into the long holiday weekend
with data on durable goods, personal income and spending, and new
home sales for November.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 781,355 call contracts traded on Wednesday, compared to
568,110 put contracts. The resultant single-session put/call ratio
arrived at 0.73, while the 21-day moving average was 0.71.
Overseas Trading
Stocks in Asia ended lower across the board today, as traders
were less than impressed by record-setting
central bank loans in the euro zone
. Tech issues helped pace the regional decline, thanks in part to
poorly received earnings from U.S. software firm
Oracle
. Meanwhile, Toyota turned lower in Tokyo, with Moody's warning of
a potential downgrade after the automaker confessed to
disappointing sales results for calendar year 2011. By the close,
Japan's Nikkei shed 0.8%, China's Shanghai Composite and Hong
Kong's Hang Seng each lost 0.2%, and South Korea's Kospi gave up
0.05%.
On the other hand, the major European indexes are pointed higher
at midday. Equities are looking to erase Wednesday's losses, with
banking names and tech stocks rebounding from the prior session's
heavy selling. However, traders haven't completely rediscovered
their risk appetites, as defensive issues -- including
pharmaceuticals and grocery stocks -- are among the day's notable
gainers. At last look, the French CAC 40 is up 1.6%, London's FTSE
100 has added 1.1%, and the German DAX has risen 1.2%.
Currencies and Commodities
The greenback is paring yesterday's gains this morning, with the
U.S. dollar index down 0.2%. Crude oil, meanwhile, has continued
its recent ascent, with the front-month contract last seen 0.4%
higher at $99.05 per barrel. On the flip side, gold futures have
extended their pullback, with the malleable metal fractionally
lower to trade at $1,612.70 an ounce.
Unusual Put and Call Activity:
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