Dow Jones Industrial Average (
) bulls have their work cut out for them this week, as the Dow is
currently hovering fewer than 150 points above key support at the
10,000 level. Meanwhile, the DJIA is staring up at stiff overhead
resistance in the 10,300 area, as well as the 10,350 region, with
the Dow's 200-day moving average residing in the latter area.
Meanwhile, if we learned one thing about the S&P 500 Index (
) last week, it's that the index's break above its 200-day moving
average was a short-term "sell" signal; much like it was in June
2009. For support, the SPX is holding firm above the 1,065-1,070
area, which was home to the index's May lows. Resistance, however,
resides at the 1,100 level, and near 1,110, which is home to the
index's 200-day moving average. Heading into the open, futures on
the DJIA and SPX are trading 43 points and 6 points above fair
value, respectively. On a final note, I found it quite interesting
that Friday's exceptional volume and breadth of trading resulted in
very little directional movement in either the DJIA or SPX. One
could make the argument that Friday's trend mirrored the past
month's trading activity, with the SPX closing within about 5
points of its May 20th finish.
In equity news, Noble Corp. (
) announced that it is buying privately held FDR Holdings Ltd. in a
cash deal valued at $2.16 billion. Noble said it expects the deal
to close by the end of July. Separately, the company also signed
two 10-year ultra-deepwater-drillship contracts with Shell and
extended another one for three years.
Finally, U.S. consumer products giants Kellogg Co. (
) and Procter & Gamble Co. (
) both issued product recalls this weekend. Kellogg issued a
voluntary recall on 28 million boxes of cereal, citing
"uncharacteristic off-flavor and smell" that it blamed on package
liners. Meanwhile, P&G recalled about 35,000 bottles of Scope
mouthwash, citing faulty child-resistant caps.
On the earnings front, Barnes & Noble Inc. (
) and Micron Technology Inc. (
) will release their quarterly reports today. Keep your browser at
for more news as it breaks.
The economic calendar kicks the week off this morning with May's
personal income and personal spending reports, while tomorrow
offers up the Case-Shiller home price index for April and the the
Conference Board's consumer confidence index. The usual weekly U.S.
petroleum supplies will arrive on Wednesday, accompanied by ADP
private sector employment numbers for June and the Chicago
Purchasing Managers' Index for June. Thursday brings the usual
weekly initial jobless claims, as well as reports on construction
spending in May and auto sales in June. We round out the week with
the Big Kahuna: nonfarm payrolls and the unemployment rate for
Equity option activity on the Chicago Board Options Exchange (
) saw 992,969 call contracts traded on Friday, compared to 645,656
put contracts. The resultant single-session put/call ratio arrived
at 0.65, while the 21-day moving average rose to 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
Every morning, our research staff analyzes the prior day and
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Overseas trading is moderately positive this morning, with eight
of the 10 foreign indexes that we track in positive territory. The
cumulative average return on the collective stands at a gain of
0.42%. In Asia, stocks were range-bound as traders digested
commentary from the weekend's Group of 20 meeting. Across the pond
in Europe, regional indexes rebounded in morning trading, driven
higher by a rally in auto makers and oil-related stocks. Overseas
market information comes to you courtesy of
Schaeffer's Daily Bulletin
Currencies and Commodities
The U.S. dollar is headed higher this morning, benefiting from a
weakening euro in the wake of this weekend's Group of 20 meaning.
The G-20 leaders reached agreement on goals for debt and deficit
reduction, but did not discuss currency issues directly. The lack
of attention benefited stronger currencies, and the U.S. Dollar
Index has added 0.16% to trade at 85.45 as a result. Elsewhere,
gold futures are basically flat in London trading, with the
front-month contract rising 70 cents to $1,256.90 an ounce.
Finally, economic uncertainty continues to weigh on crude futures
this morning, with the lead contract down 65 cents at $78.21 per
barrel in pre-market trading.
Unusual Put and Call Activity:
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