Opening View: DJIA Futures Edge Higher Ahead of Holiday, Data Deluge

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The Dow Jones Industrial Average (DJIA) plunged 142 points on Tuesday, but the battered and bruised blue chip barometer weathered the Korean conflict and Irish debt woes by closing above psychological support at the 11,000 level. While neither of those fears have been completely alleviated, the Dow appears poised to head higher today, though volume will be light ahead of tomorrow's Thanksgiving holiday. Heading into the open, futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 14 points and 2.2 points above fair value, respectively. Traders should not slip into an early tryptophan-induced complacency, however, as there is a veritable flood of economic data slated for release today, including durable goods, consumer sentiment, petroleum supplies, and weekly jobless claims, just to name a few.

In equity news, Deere & Company ( DE ) reported a fourth-quarter profit of $457 million, or $1.07 per share, as sales jumped 35% to $7.2 billion. Analysts were expecting a profit of 95 cents and sales of $6.3 billion.

Elsewhere, Tiffany & Co. ( TIF ) reported adjusted third-quarter earnings of 46 cents per share, as revenue rose to $681.7 million. Wall Street was looking for earnings of 37 cents per share and revenue of $650.3 million. Looking ahead, Tiffany said that it now expected to earn an adjusted $2.72 to $2.77 per share for fiscal 2011, up from its previous estimate of $2.60 to $2.65 per share. The consensus estimate for 2011 was set at $2.63 per share.

TiVo Inc. ( TIVO ) announced that its third-quarter loss widened to $20.6 million, or 18 cents per share, from a loss of $6.48 million, or 6 cents per share, in the year-ago period, as operating expenses increased. Service and technology revenue declined to $41.3 million from $42.1 million. Analysts were expecting a loss of 17 cents per share on service and technology revenue of $41.4 million.

Earnings Preview

The economic calendar is quiet for the rest of the week, due to the Thanksgiving holiday. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

The Street will be drenched in data today, with October's personal income and spending reports, October durable goods orders, weekly initial jobless claims, November's University of Michigan consumer sentiment index, October's new home sales, and weekly U.S. petroleum supplies. The market is closed for Thanksgiving on Thursday, and there are no economic reports slated for release on Friday.

Market Statistics

Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,114,862 call contracts traded on Tuesday, compared to 809,079 put contracts. The resultant single-session put/call ratio arrived at 0.73, while the 21-day moving average rose to 0.58.

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

Overseas Trading

Overseas trading is bouncing back this morning, as seven of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.22%. In Asian trading, Japan's Nikkei had a rude welcome back from yesterday's holiday hiatus, plunging nearly 1% as traders played catch-up with Tuesday's losses. However, the rest of the region rebounded, with investors snapping up oversold stocks on hopes that Korean tensions would be short lived. In Europe, regional markets headed broadly higher, as strong economic data out of Germany offset continuing concerns about sovereign debt in the euro zone. Specifically, the Ifo Institute's business-climate index tagged its highest level since Germany was reunified.

Overseas markets

Currencies and Commodities

Global uncertainty and light volume ahead of the Thanksgiving holiday is fueling gains for the U.S. dollar this morning. Extending yesterday's safe-haven rally, the U.S. Dollar Index has added 0.17% to trade at 79.82 in premarket activity. Surprisingly, crude futures, which typically trade inversely to the greenback, have gained 20 cents to $81.45 per barrel in electronic trading. Gold, however, has not been so lucky, with the malleable metal declining $3.00 to $1,376.70 an ounce in London.

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.

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This article appears in: Investing , Options

Referenced Stocks: CBOE , DE , TIF , TIVO

Schaeffer's Investment Research

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