After yesterday's
data-induced rally
, stocks are taking a breather this morning, with futures flat
ahead of the bell. On the heels of yesterday's
promising employment and manufacturing reports
, investors are cautiously awaiting the results of today's weekly
jobless claims and testimony from Fed Chairman Ben Bernanke. With a
slew of earnings releases on tap, as well as tomorrow's
ever-important nonfarm payrolls, Wall Street is anticipating a
flood of information. Against this busy backdrop, both the Dow
Jones Industrial Average (DJIA) and the broader S&P 500 Index
(SPX) are set to open with marginal losses.
After Wednesday's close, Facebook raised the curtain on its
long-awaited initial public offering (IPO). According to paperwork
filed with the Securities and Exchange Commission (SEC), Facebook
earned $1 billion last year, with revenue arriving at $3.7 billion.
The social networking site did not specify how many shares it would
sell in its offering, or at what price, but the "placeholder" value
of the IPO is currently pegged at $5 billion -- right in line with
the prevailing market speculation. Facebook will trade under the
ticker FB, although the company has yet to determine whether it
will trade on the New York Stock Exchange or the Nasdaq.
In earnings news, Green Mountain Coffee Roasters Inc. (GMCR -
53.63) banked a fiscal first-quarter profit of $104.4 million, or
66 cents per share, a marked improvement over last year's profit of
$2.4 million, or 2 cents per share. Excluding items, earnings rose
a year-over-year 233% to 60 cents per share. Thanks to surging
sales in its K-Cup line, revenue soared 102% to $1.16 billion. The
results came in far above analysts' expectations for adjusted
earnings of 36 cents per share on $1.06 billion in revenue. Looking
ahead, GMCR is calling for adjusted second-quarter earnings of 60
cents to 65 cents per share on sales growth of 45% to 50%. The
outlook is more cautious than Wall Street's projection for a
per-share profit of 73 cents on 59% revenue growth. GMCR is set to
soar today, trading 22% higher in pre-market action.
Elsewhere, Chipotle Mexican Grill (CMG - 370.41) reported a
fourth-quarter profit of $57.5 million, or $1.81 per share, up
23.7% from $46.4 million, or $1.47 per share, in the year-ago
period. Meanwhile, revenue rose 24% to $596.7 million, boosted by
an 11.1% increase in same-store sales. The results were mixed, as
analysts, on average, expected a healthier profit of $1.83 per
share on revenue of $591.2 million. CMG is down 2% ahead of the
bell.
Finally, thanks to strong revenue from its Asia-based
properties, Las Vegas Sands (LVS - 50.18) said its fourth-quarter
earnings increased 34% to $435.3 million, or 39 cents per share,
from last year's profit of $325.5 million, or 34 cents per share.
On an adjusted basis, earnings rose to 57 cents from 42 cents per
share. Revenue increased 26% to $2.54 billion. LVS' bottom-line
results fell right in line with analysts' estimates, while revenue
surpassed expectations of $2.47 billion. LVS was last seen 1%
lower.
Earnings Preview
Today's earnings docket will also feature reports from
International Paper (
IP
), Kellogg (
K
), MasterCard (
MA
), Merck (
MRK
), Allergan (
AGN
), Gilead Sciences (GILD), Boston Scientific (BSX), Cardinal Health
(CAH), Beazer Homes (BZH), M/I Homes (MHO), Blackstone Group (BX),
Acme Packet (APKT), NetSuite (N), Cavium (CAVM), Digital River
(DRIV), CME Group (CME), Diamond Offshore Drilling (DO), Sunoco
(SUN), Dow Chemical (DOW), Edwards Lifesciences (EW), Genworth
Financial (GNW), New York Times (NYT), Royal Caribbean Cruises
(RCL), and Starwood Hotels & Resorts (HOT). Keep your browser
at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
Today's docket is relatively light, featuring the regularly
scheduled data on weekly jobless claims. Finally, the Labor
Department's marquee report on nonfarm payrolls will dominate
headlines on Friday, and traders will also digest the latest data
on factory orders and the ISM's services index.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,366,876 call contracts traded on Wednesday, compared
to 843,124 put contracts. The resultant single-session put/call
ratio arrived at 0.62, while the 21-day moving average was
0.60.
Overseas Trading
Asian markets ended higher today, following suit with Wall
Street's Wednesday rally. In Japan, automakers Toyota and Honda
gained ground after reporting healthy January sales figures, while
investment giant Nomura surged on the heels of its
stronger-than-expected quarterly earnings figures. Commodity stocks
were also among the day's notable advancers, thanks to
well-received manufacturing reports from the U.S. and Europe. By
the close, Japan's Nikkei added 0.8% and South Korea's Kospi rose
1.3%, while China's Shanghai Composite and Hong Kong's Hang Seng
gained 2% apiece.
On the other hand, European equities are modestly lower at
midday, despite some initial enthusiasm over a potential
Glencore-Xstrata merger. Bulls were spooked by a gloomy outlook
from consumer products company Unilever, along with earnings misses
from the likes of AstraZeneca, Deutsche Bank, and Royal Dutch
Shell. At last check, the French CAC 40 is down 0.03%, the German
DAX is off 0.05%, and London's FTSE 100 has dipped 0.3%.
Currencies and Commodities
The greenback is headed higher this morning, with the U.S.
dollar index up 0.3% at $79.15. Crude oil, on the other hand, is
looking to extend its stay in the red, with the front-month
contract down 1.1% to trade at $96.54 per barrel. Elsewhere, gold
futures are on track to
pare some of their recent gains
, with the malleable metal last seen 0.1% lower at $1,747.10 an
ounce.
Unusual Put and Call Activity:
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Education Center
topics on
Option Volume
and
Open Interest Configurations
.
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