Opening View: DJIA Bulls Cautious Ahead of Jobless Claims

By
A A A

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 average.

In equity news, Guess Inc. ( GES ) 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 ( JDSU ) 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. ( TIVO ) 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 $55.6 million.

Earnings Preview

On the earnings front, Aruba Networks Inc. ( ARUN ), bebe stores inc. ( BEBE ), Novell Inc. ( NOVL ), and OmniVision Technologies Inc. ( OVTI ) are scheduled to release their quarterly earnings reports today. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

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.

Market Statistics

Equity option activity on the Chicago Board Options Exchange ( CBOE ) 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.

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

Click here for the new summer issue of SENTIMENT magazine

Overseas Trading

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.

Overseas markets

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.

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

Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up here for free daily delivery, straight to your inbox, before the opening bell.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options


Schaeffer's Investment Research

Schaeffer's Investment Research
  • See all for Schaeffer's Investment Research
  • View Print Version

More from Schaeffer's Investment Research:

Related Videos

Stocks

Referenced

Most Active by Volume

57,375,820
  • $16.20 ▼ 0.80%
46,357,695
  • $102.13 ▲ 1.23%
39,856,106
  • $3.59 ▲ 0.84%
36,749,915
  • $19.21 ▲ 5.38%
35,094,671
  • $74.63 ▼ 1.75%
25,538,058
  • $48.06 ▼ 0.23%
24,241,250
  • $38.18 ▲ 1.03%
22,422,839
  • $11.20 ▲ 3.70%
As of 8/27/2014, 04:02 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com