The Dow Jones Industrial Average (DJIA) vaulted 3.2% last week,
taking out short-term resistance in the 10,350-10,400 region, as
well as besting its 200-day moving average. The S&P 500 Index
(SPX), meanwhile, toppled psychological resistance at the 1,100
level, but is still staring up at its own 200-day trendline in the
1,115 region. Activity is sluggish in pre-market trading this
morning, as Wall Street digests the results from the European
banking system stress tests. Heading into the open, futures on the
DJIA and the SPX are trading five points and one point above fair
value, respectively. Look for the DJIA to struggle near 10,450,
which is home to a 50% retracement of the Dow's July low and April
high, while the SPX could meet with resistance near 1,105-1,110.
Finally, the CBOE Market Volatility Index (VIX) has pulled back to
its 200-day moving average near the 23.50 level. The VIX has not
closed a session below this trendline since May 3.
In equity news, Gilead Sciences Inc. (
) announced that it will buy back at least $1 billion in common
stock, and fund the purchase by issuing $2.2 billion in convertible
senior notes. The company said that it will use the remainder of
the senior-note issue for general corporate purposes. The
repurchases will be privately negotiated and off-market
transactions from buyers of the notes.
In merger and acquisition news, Delta Petroleum Corp. (
) agreed to sell various non-core assets to Wapiti Oil & Gas
for $130 million. The assets include Delta's 31% working interest
in the Garden Gulch field of the Piceance Basin in Colorado, as
well as assets in Texas, and the firm's stake in Piper Petroleum.
The proceeds from the sale will be used to reduce debt.
Finally, Enterprise Products Partners (
) posted a second-quarter net profit of $357.2 million, or 46 cents
per unit, as revenue rose 39% to $7.54 billion. The company said
that its midstream systems were operating at or near record levels,
with natural gas pipeline volumes at a record 12.7 trillion British
thermal units per day. Analysts were expecting earnings of 44 cents
per share on sales of $7.56 billion.
On the earnings front Sohu.com Inc. (
), Lorillard Inc. (
), SL Green Realty Corp. (
), Albemarle Corp. (
), and Universal Health Services Inc. (
) are scheduled to release their quarterly earnings report today.
Keep your browser at
for more news as it breaks.
On the economic front, new home sales for June will arrive later
this morning. Tomorrow, we'll get the Case-Shiller home price index
for May and the Conference Board's Consumer confidence Index for
July. On Wednesday, the market will be graced with the weekly
report on U.S. petroleum supplies, while Thursday offers up weekly
initial jobless claims and the Fed's Beige Book. On Friday, we'll
get the latest numbers on second-quarter gross domestic product,
along with the Chicago Purchasing Managers' Index for July, and a
final look at July consumer confidence as measured by Reuters and
the University of Michigan.
Equity option activity on the Chicago Board Options Exchange (
) saw 1,123,923 call contracts traded on Friday, compared to
646,922 put contracts. The resultant single-session put/call ratio
arrived at 0.58, while the 21-day moving average slipped to
**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 is mixed 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 gain of
0.08%. In Asia, regional indexes moved higher, as the uncertainty
surrounding the European banking stress tests was finally lifted,
though modest doubts about certain lenders remained. Speaking of
Europe, regional indexes are mostly lower following news that seven
out of the 91 banks receiving stress testing failed.
Currencies and Commodities
Crude futures are headed lower this morning, despite a
relatively flat session in Asian trading. The front-month contract
was last seen lower by 0.85% at $78.31 per barrel. Elsewhere, gold
futures remain bound to a tight range this morning, with the
front-month contract down $1.40 at $1,186.40 an ounce. Finally, the
U.S. dollar is little changed this morning versus its major foreign
rivals. Specifically, the U.S. Dollar Index was last seen lower by
0.04% at $82.43.
Unusual Put and Call Activity:
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