Opening View: Can JPMorgan Chase Lift the DJIA to Eight Wins in a Row?

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The Dow Jones Industrial Average (DJIA) extended its winning streak to seven in a row on Wednesday, marking only the 19th time the Dow has enjoyed such good fortune in the past 20 years. What's more, the DJIA has added more than 7% since July 2, when the current uptrend began. However, the blue-chip barometer is still staring up at short-term resistance at the 10,400 level, as well as its 200-day moving average. Look for this region to remain oppressive, with 10,600 capping any breakout rallies. Meanwhile, the S&P 500 Index (SPX) logged a minor loss yesterday, as the broad-market index continues to do battle with the 1,100 level. The SPX has not closed a session above this region since June 21. Should 1,100 fall, longer-term resistance should materialize near 1,112, which is home to the SPX's 200-day moving average. Heading into the open, we have a slight upside bias, as futures on the DJIA and the SPX are trading 13 points and roughly 2 points above fair value, respectively.

Headlining equity news this morning, JPMorgan Chase & Co. ( JPM ) said that its second-quarter net profit jumped 76%, due in part to a reduction in its loan loss reserves. For the quarter, JPM earned $4.8 billion, or $1.09 per share, as total net revenue fell 2% to $25.1 billion. The company said that the results include a benefit from a $1.5 billion reduction in its loan loss reserves, which was partly offset by a $550 million charge to cover the U.K.'s tax on employee bonuses. Analysts were expecting earnings of 74 cents per share. In pre-market trading, JPM has risen about 1.3%.

Also in earnings, Marriott International ( MAR ) reported that its second-quarter net income was $119 million, or 31 cents per share, as revenue rose 8% to $2.8 billion. Analysts had forecast Marriott to earn 29 cents per share on revenue of $2.75 billion. MAR is inactive in pre-market trading, but rose 0.25% in after-hours trading on Wednesday.

Finally, the privately held Carlyle Group is set to purchase nutritional supplements company NBTY Inc. ( NTY ) in a deal valued at $3.8 billion. Under the terms of the agreement, Carlyle will acquire all outstanding NBTY common shares for $55 per share in cash. The deal, which was unanimously accepted by the company's board, must still be approved by NBTY shareholders.

Earnings Preview

On the earnings front, Novartis AG ( NVS ), PPG Industries Inc. ( PPG ), Advanced Micro Devices Inc. ( AMD ), and Google Inc. ( GOOG ) are scheduled to release their quarterly earnings report today. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

Inflationary data is front and center on the earnings calendar today, 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 ( CPI ), the core CPI, and the University of Michigan's consumer sentiment index for July.

Market Statistics

Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,270,417 call contracts traded on Wednesday, compared to 741,030 put contracts. The resultant single-session put/call ratio arrived at 0.58, while the 21-day moving average held at 0.64.

Volatility indices

NYSE and Nasdaq summary

**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 higher.**

Dow, S&P and Nasdaq futures

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Overseas Trading

Overseas trading remains weak this morning, as only four of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a loss of 0.43%. In Asia, the various markets closed in the red after regional markets were unable to fully recover from early losses in reaction to Chinese economic data. China's pace of economic growth slowed to 10.3% in the second quarter from a year earlier, slightly weaker than expected. June consumer price inflation rose 2.9%, versus a 3.1% rise in May and a forecast for a 3.3% rise. On the other hand, European share were higher, after JPMorgan Chase beat market expectations with its second-quarter earnings. Overseas market information comes to you courtesy of Schaeffer's Daily Bulletin .

Overseas markets

Currencies and Commodities

The U.S. dollar took a hit in overnight trading, as the Bank of Japan held rates steady but boosted it growth outlook for the country. As a result, the U.S. Dollar Index has dropped 0.59% to trade at 82.94, the index's first trip below the 83 level since May 3. Commodities are taking full advantage of the dollar's decline, with gold futures adding $6.40 to trade at $1,213.40 an ounce. Elsewhere, crude futures have risen 34 cents to $77.79 per barrel in electronic trading.

Currencies and commodities

Unusual Put and Call Activity:

For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations .

Unusual options activity - puts

Unusual options activity - calls

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