The Dow Jones Industrial Average (DJIA) is sitting on a weekly
gain of more than 2% after the blue-chip barometer soared more than
200 points on Thursday. The DJIA is cautiously higher this morning,
with futures trading about 22 points above fair value, as investors
digest another round of corporate earnings while awaiting bank
stress tests out of Europe. The Dow is still staring up at stiff
technical resistance in the 10,350-10,400 area, which could limit
today's advance. Support, meanwhile, should manifest near 10,200,
or 10,000 should Europe's banking tests spook investors. Turning to
the S&P 500 Index (SPX), the SPX is trading above support near
1,085, but the index must still contend with the 1,100 level if it
is to stage any serious rally ahead of the weekend. Finally, the
CBOE Market Volatility Index (VIX) is being squeezed into support
near the 23-24 region. The VIX has not closed a session below the
23 level since May 3, though a strong rally on Wall Street could
finally send the "fear" index to multi-week lows.
In earnings news, Ford Motor Co. (
) reported second-quarter net income of $2.6 billion, or 61 cents
per share. Adjusted net income was 68 cents per share. Revenue rose
to $31.3 billion, from $26.8 billion. Wall Street analysts expected
earnings of 40 cents per share, on revenue of $29.5 billion. Ford
expects third-quarter production to rise by 126,000 units from
year-ago levels, "reflecting continued strong demand for Ford
products, maintenance of competitive stock levels, and the
non-recurrence of prior-year stock reductions."
Elsewhere, Microsoft Corp. (
) said that its fiscal fourth-quarter net income rose to $4.5
billion, or 51 cents per share, as revenue rose to $16.04 billion.
Analysts were expecting earnings of 46 cents per share, and $15.2
billion in revenue.
Finally, Amazon.com Inc.'s (
) second-quarter earnings jumped 45% to $207 million, or 45 cents
per share, as grew 41% to $6.57 billion. Analysts were looking for
earnings of 53 cents per share on revenue of $6.5 billion. For the
third quarter, Amazon predicts revenue to come in the range of $6.9
billion to $7.6 billion. Analysts had been looking for $7.16
billion for the third quarter.
On the earnings front Honeywell International Inc. (
), Johnson Controls Inc. (
), Schlumberger Limited (
), Verizon Communications Inc. (
), and Kimberly-Clark Corp. (
) are scheduled to release their quarterly earnings report today.
Keep your browser at
for more news as it breaks.
We end the week today as we began it, with no economic reports
on the docket.
Equity option activity on the Chicago Board Options Exchange (
) saw 1,435,420 call contracts traded on Thursday, compared to
769,983 put contracts. The resultant single-session put/call ratio
arrived at 0.54, while the 21-day moving average held at 0.64.
**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
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Overseas trading looks strong heading into the weekend, as eight
of the 10 foreign indexes that we track are in positive territory.
The cumulative average return on the collective stands at a gain of
0.60%. Gains in U.S. markets provided lift for Asian markets, with
Chinese shares soaring to their sixth consecutive winning session
and Japanese stocks nearly erasing losses from earlier in the week.
Across the pond in Europe, regional indexes were mixed due to
activity in the financial sector ahead results from banking stress
tests in the region.
Currencies and Commodities
The U.S. Dollar Index continues to backslide from gains posted
earlier in the week. Despite the decline of the past few sessions,
the index is hovering just above support near the 82 level. Heading
into the open, the U.S. Dollar Index is off 0.33% at 82.32. Crude
futures are also trading lower in electronic trading, with the lead
contract off 28 cents at $79.02 per barrel. Finally, gold futures
are benefiting from the dollar's weakness, with the malleable metal
up $2.50 at $1,198.10 an ounce in London.
Unusual Put and Call Activity:
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