The Dow Jones Industrial Average (DJIA) rallied 103 points on
Monday, snapping a five-day losing streak for the blue-chip
barometer. Despite the upturn in investor sentiment, the Dow met
with staunch resistance near the 10,500 level yesterday. The area
is home to the DJIA's 200-day moving average, and could become a
considerable technical hurdle for the bulls. Support, meanwhile,
continues to play out at the 10,300 level, with Wall Street
refusing to allow the Dow to slip below this round-number region.
As for the S&P 500 Index (SPX), the broad-market index is
staring up at psychological resistance in the 1,100 region, though
support could materialize just below 1,090 at the SPX's 50-day
moving average. Heading into the open, we could see these
short-term support levels tested, as futures on the DJIA and the
SPX are trading about 26 points and 2 points below fair value,
respectively. Finally, the CBOE Market Volatility Index (VIX)
gapped below support/resistance at the 25 level yesterday. The VIX
could now be range-bound between this potential technical hurdle
and support at its 200-day trendline (near 23.50).
In equity news, Deere Co. (
) reported third-quarter earnings of $617 million, or $1.44 per
share, as sales rose 16% to $6.84 billion. Analysts were looking
for earnings of $1.20 per share, on sales of $6.52 billion. For the
fourth quarter, Deere forecast net income of about $375 million,
below Wall Street's current outlook for $388.9 million.
Meanwhile, BHP Billiton's (
) attempted takeover of Potash Corp. of Saskatchewan (
) has gone hostile, with BHP taking its $130-per-share offer
directly to POT shareholders. Potash rejected BHP's offer on
Wednesday, calling the plan "grossly inadequate." Potash also
adopted a poison-pill antitakeover measure. BHP called the proposal
On the earnings front, BJ's Wholesale Club Inc. (
), Chico's FAS Inc. (
), Target Corp. (
), Applied Materials Inc. (
), Brocade Communications Systems Inc. (
), Hot Topic Inc. (
), and Limited Brands Inc. (
) are scheduled to release their quarterly earnings report today.
Keep your browser at
for more news as it breaks.
The usual weekly report on U.S. petroleum supplies is due out
later today, while the weekly report on initial jobless claims will
be released on Thursday, along with the Conference Board's Leading
Indicators Index for July, and the Philadelphia Fed Index for
August. There are no major economic reports scheduled for
Equity option activity on the Chicago Board Options Exchange (
) saw 1,092,171 call contracts traded on Tuesday, compared to
691,409 put contracts. The resultant single-session put/call ratio
arrived at 0.63, while the 21-day moving average held at 0.61.
**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 struggling 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
0.02%. In Asia, regional indexes finished mixed, with Japanese
stocks advancing due to strong earnings reports from technology and
automobile exporters. Across the pond in Europe, markets are mostly
lower, with traders consolidating their positions following strong
gains on Monday.
Currencies and Commodities
Crude prices are headed lower in pre-market activity, as
investors weigh yesterday's U.S. petroleum supplies data from the
American Petroleum Institute and gains in the U.S. dollar in Asian
trading. At last check, the front-month contract was down 98 cents
at $75.18 per barrel. Despite overnight strength in Asia, the U.S.
dollar is weakening in pre-market trading. At last check, the U.S.
Dollar Index was seen lower by 0.15% at 82.10. Finally, gold
futures are retreating heading into the open, with the most active
contract off $2.60 at $1,225.70 an ounce in London.
Unusual Put and Call Activity:
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Senior Equities Analyst Andrea Kramer will be live blogging
from the Schaeffer's booth at the San Francisco Money Show
later this week. Click
for an advance look at what to expect at this premier investor
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