Despite rallying more than 100 points early in the session, the
Dow Jones Industrial Average (
) flopped in afternoon trading, shedding roughly 20 points and
closing back below the 10,200 level. The Dow continues to find
resistance at its 10-month moving average, which is currently
resting just below 10,300, while support can loosely be defined by
the 10,000 and 9,800 levels. Meanwhile, the S&P 500 Index (
) was neatly rejected by its 200-day moving average on Monday. This
trendline is currently hovering just below the 1,110 area, while
support could emerge near the 1,080 or 1,060 levels. Heading into
the open, we are seeing a positive bias similar to yesterday
morning, with futures on the DJIA and the SPX trading 51 points and
6 points above fair value, respectively. Finally, I should point
out that the end of the week brings about "triple witching," when
equity options, stock index options, and stock futures contracts
expire simultaneously. According to Todd Salamone in this week's
Monday Morning Outlook
, 71% of the 17 triple-witching expiration weeks since 2006 have
produced positive returns, though only 40% of June triple-witching
expiration weeks have been positive, with the average loss totaling
In earnings news, FactSet Research Systems Inc. (
) reported third-quarter net income of $38.7 million, or 81 cents
per share. Excluding a one-time gain of 3 cents per share, FactSet
earned 78 cents per share, as revenue rose 4% to $160.3 million.
Looking ahead, the firm sees fourth-quarter earnings of 78 cents to
80 cents per share, including a charge of a penny per share.
Finally, the hits keep coming for BP plc (
). This morning, Fitch Ratings downgraded BP's credit rating to BBB
from AA, and put the company on negative watch. The ratings firm
cited the recent push by U.S. authorities for BP to escrow
significant funds preemptively, ahead of any agreed claims process,
as well as recent indications that U.S. government scientists have
uncovered a significantly higher spill rate than previously
On the earnings front, Best Buy Co., Inc. (
) is slated to report is quarterly figures today. Keep your browser
for more news as it breaks.
The economic calendar offers up the Empire State Manufacturing
Index for June as well as May's import/export data. Wednesday
brings the release of weekly crude inventories, May housing starts,
the May Producer Price Index (
) and core PPI, and May industrial production data. Thursday will
be chock full of economic data. Traders will get a look at initial
jobless claims, the May Consumer Price Index (
) and core CPI, the Conference Board's leading indicators index for
May, and the Philadelphia Fed Index for June. Friday closes with no
major economic reports.
Equity option activity on the Chicago Board Options Exchange (
) saw 1,183,695 call contracts traded on Monday, compared to
700,951 put contracts. The resultant single-session put/call ratio
arrived at 0.59, while the 21-day moving average held at 0.67.
**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 in good shape this morning, as nine of the
10 foreign indexes that we track are in positive territory. The
cumulative average return on the collective stands at a gain of
0.33%. In Asia, stocks remained range-bound in cautious trading
following Moody's downgrade of Greece's debt to junk status.
Meanwhile, European shares bounced back from early losses, but
banking stocks remained among the biggest losers. Overseas market
information comes to you courtesy of
Schaeffer's Daily Bulletin
Currencies and Commodities
With confidence growing in the U.S. and overseas, traders are
forsaking safe-haven investments and turning toward riskier
options. For instance, the U.S. Dollar Index has dipped 0.10% to
86.42 in pre-market trading, with the euro gaining ground.
Meanwhile, gold futures are basically flat this morning, with the
most active contract down 20 cents at $1,224.30 an ounce in London.
Crude, however, has taken off in pre-market trading. The lead
contract has gained more than 75 cents, or 0.98%, to trade at
$77.03 in electronic trading this morning.
Unusual Put and Call Activity:
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