The Dow Jones Industrial Average (DJIA) held support at the
10,000 level yesterday, and even managed to finish in positive
territory despite a fresh round of weak economic data. The Dow
still faces some stiff technical hurdles, including the 10,100
level, not to mention another round of economic reports today, with
jobless claims, and tomorrow, with second-quarter gross domestic
product. That said, Wall Street appears to have recovered its
footing after yesterday's trip below 10,000 on the DJIA, and some
bargain hunting may finally be taking place. Heading into the open,
futures on the DJIA and S&P 500 Index (SPX) are trading roughly
17 points and 2 points above fair value, respectively. Finally, the
CBOE Market Volatility Index (VIX) was turned back by resistance in
the 28 region. This area is home to the VIX's 80-day moving
In equity news, Guess Inc. (
) reported record quarterly net earnings of $66.8 million, or 72
cents per share, on net revenue of $577.1 million. Comparable-store
sales increased 1.7% in local currency and 3.5% in U.S. dollars.
Guess was expected to earn 68 cents per share in the period.
Elsewhere, JDS Uniphase (
) swung to a profit for its fourth fiscal quarter on a strong jump
in sales of the company's optical networking products. For the
quarter, the firm reported non-GAAP earnings of 15 cents per share
on revenue of $398.1 million. Analysts were expecting earnings of
14 cents per share on revenue of $398.5 million.
Finally, TiVo Inc. (
) said that its second-quarter loss widened to $15.3 million, or 13
cents per share, from $2.7 million, or 3 cents per share, a year
ago. Revenue declined to $51.5 million from $57.6 million a year
ago. Analysts estimated a loss of 15 cents per share on revenue of
On the earnings front, Aruba Networks Inc. (
), bebe stores inc. (
), Novell Inc. (
), and OmniVision Technologies Inc. (
) are scheduled to release their quarterly earnings reports today.
Keep your browser at
for more news as it breaks.
Weekly initial jobless claims will arrive later this morning,
while tomorrow rounds out the week with a second look at
second-quarter U.S. gross domestic product and the final reading on
the University of Michigan's August consumer sentiment index.
Equity option activity on the Chicago Board Options Exchange (
) saw 1,068,964 call contracts traded on Wednesday, compared to
664,930 put contracts. The resultant single-session put/call ratio
arrived at 0.62, 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 is in fine shape this morning, 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
0.36%. In Asia, regional markets rebounded from their recent lows,
with Japan leading the way higher on speculation that the country
may directly intervene in the yen's rise versus the U.S. dollar.
Turning to Europe, Wall Street's resilience in snapping a
four-session losing streak provided confidence for buyers, while
strong earnings from French banking concern Credit Agricole added
to the bullish momentum.
Currencies and Commodities
With investors slowly returning to the equities market, the U.S.
dollar is beginning to lose its safe-haven appeal. However,
indications that Japan is closer to taking direct action in
limiting the yen's rise versus the greenback has provided some lift
for the U.S. currency. At last check, the U.S. Dollar Index was
down 0.38% at 82.94. Given crude's steep decline during the past
several days, commodities traders have been more than happy to go
bargain hunting, especially in the wake of a weakening U.S. dollar.
In electronic trading, the front-month crude contract is up 85
cents at $73.37 per barrel. Finally, gold futures are also on the
rise, with the lead contract up $4.30 at $1,245.60 an ounce in
London - the metal's highest point since June 30.
Unusual Put and Call Activity:
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