The Dow Jones Industrial Average (DJIA) may have gained only
about 18 points on Monday, but the rally pushed the venerable
average past resistance at the 10,200 level and marked the fifth
straight gain for the Dow. The DJIA is also trading above its
10-week moving average, and given the historical upside bias of
expiration weeks, it has a good chance of closing the week above
this trendline for the first time since late April. The S&P 500
Index (SPX) wasn't as lucky as the Dow, closing below resistance in
the 1,080-1,085 region and its 10-week moving average. Today's
session looks promising, however, as futures on the DJIA and SPX
are trading 64 points and 9 points above fair value, respectively,
as traders react to a strong quarterly performance from Alcoa Inc.
). Alcoa shares are up more than 4% in pre-market trading, which
bodes well for Wall Street, as the stock's post-earnings reaction
has been a
for overall market direction.
Speaking of Alcoa, the aluminum giant said that it swung to a
second-quarter profit of $136 million, or 13 cents per share, due
to lower costs and stronger aluminum demand. The results were in
line with analyst expectations. Revenue rose 22% to $5.2 billion
from the year-earlier quarter, topping the consensus analyst target
of $4.97 billion. The company also raised its 2010 forecast for
global aluminum consumption.
Elsewhere, CSX Corp. (
) said its second-quarter profit from continuing operations came in
at $414 million, or $1.07 per share. Revenue climbed 22% to nearly
$2.7 billion. CSX was expected to earn 96 cents per share on
revenue of $2.62 billion.
Finally, Novellus Systems Inc. (
) reported a second-quarter profit of $63.3 million, or 66 cents
per share. Revenue was $321.4 million, up from $119.2 million.
Analysts had expected the company to report earnings of 60 cents
per share, on revenue of $312 million.
The Fastenal Co. (
), Infosys Technologies Limited (
), Intel Corp. (
), and Yum! Brands Inc. (
) are scheduled to release their quarterly earnings report today.
Keep your browser at
for more news as it breaks.
May's trade balance and June's Treasury budget arrive today.
Tomorrow, the market will be graced with the weekly report on U.S.
petroleum supplies, as well as June's retail sales, June's
import/export prices, May's business inventories, and the minutes
from the most recent Federal Open Market Committee meeting.
Inflationary data is on tap for Thursday, with the release of
June's producer price index (PPI) and the core PPI reading.
Furthermore, weekly initial jobless claims, July's Empire State
manufacturing index, June's industrial production/capacity
utilization report, and the July Philadelphia Fed's manufacturing
index are all slated for release. Finally, Friday finishes off a
week packed full of data with June's consumer price index (
), the core CPI, and the University of Michigan's consumer
sentiment index for July.
Equity option activity on the Chicago Board Options Exchange (
) saw 1,016,963 call contracts traded on Monday, compared to
644,961 put contracts. The resultant single-session put/call ratio
arrived at 0.63, while the 21-day moving average held at 0.65.
**The volume data shown above is from the Nasdaq and NYSE
exchanges only. It does not include regional volume activity,
which means that other daily volume quotes you see may be
Every morning, our research staff analyzes the prior day and
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Overseas trading is mostly positive this morning, as seven of
the 10 foreign indexes that we track are in positive territory. The
cumulative average return on the collective stands at a gain of
0.67%. In Asian trading, regional indexes erased early gains after
Chinese leadership in Beijing denied that it would relax its
tightening policies on the property market. Meanwhile, European
markets are broadly higher, as traders cheer strong earnings
outlooks from Alcoa Inc. and BMW. Furthermore, data out of the U.K.
pointed toward slowing inflationary pressures, though less than
expected. Specifically, consumer prices rose 0.1% in June and were
3.2% higher on a year-over-year basis, the Office for National
Statistics said. Economists had forecast a flat monthly reading and
a 3.1% annual rise. Overseas market information comes to you
Schaeffer's Daily Bulletin
Currencies and Commodities
The U.S. dollar is trading fractionally lower this morning due
to a mix of data, including news that Moody's downgraded Portugal's
government debt rating by two notches. The euro is trading lower as
a result, but the dollar is being eschewed in favor of equities
this morning following last night's quarterly report from Alcoa
Inc. As a result, the U.S. Dollar Index is off 0.05% at 84.17
heading into the open. Commodities, meanwhile, are taking advantage
of the lower greenback. Specifically, gold futures have risen $8.20
to $1,206.90 an ounce in London, while crude oil has added 44 cents
to $75.39 per barrel in electronic trading.
Unusual Put and Call Activity:
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