The Dow Jones Industrial Average (DJIA) leapt more than 2%
higher yesterday, breaking back above former resistance at the
11,250 level. What's more, the Dow could add a bit of cushion to
Wednesday's gains, as futures on the DJIA and the S&P 500 Index
(SPX) are trading roughly 25 points and 5 points above fair value,
respectively. Wall Street will be focused on commentary out of the
euro zone today, with European Central Bank President Jean-Claude
Trichet slated to provide clues on how the bank will address the
region's sovereign debt crisis. Additionally, traders will receive
their second dose of employment data this week, with the release of
weekly initial jobless claims this morning.
Technically, the DJIA could find support at the 11,250 level today,
while resistance could emerge near 11,300-11,350. As for the SPX,
the broad-market index has a short-term floor near 1,205, with
resistance just overhead at the 1,215 level.
In equity news, PepsiCo Inc. (
) announced that it will acquire 66% of Wimm-Bill-Dann Foods OJSC (
) for $3.8 billion, pending the required government approvals.
Additionally, PepsiCo said that it will offer to acquire the
remaining shares "at such time and on terms as are mandated by
Russian law." The deal will raise the company's annual global
revenue to nearly $13 billion, the company said.
Elsewhere, Aeropostale (
) reported third-quarter profit of $58.5 million, or 63 cents per
share, compared to earnings of $62.6 million, or 61 cents per
share, in the same quarter last year. Revenue rose 6% to $602.8
million. Analysts expected the company to earn 66 cents per share
on revenue of $605 million.
Finally, Krispy Kreme Doughnuts (
) said it swung to a third-quarter profit of $2.4 million, or 3
cents per share, from a net loss of $2.4 million, or 4 cents per
share, in the same quarter last year. Revenue rose 7.9% to $90.2
million. Analysts expected the company's earnings to break even on
revenue of $87.8 million.
On the earnings front, Del Monte Foods Company (
), The Kroger Co. (KR) Toll Brothers Inc. (TOL), Coldwater Creek
Inc. (CWTR), Novell Inc. (NOVL) and VeriFone Systems Inc. (PAY) are
slated to release their quarterly reports. Keep your browser at
for more news as it breaks.
Weekly initial jobless claims arrive today, alongside October's
pending home sales. Tomorrow, the much anticipated nonfarm payrolls
report and the unemployment rate for November will arrive,
accompanied by October factory orders and the Institute for Supply
Management's services index for November.
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,368,010 call contracts traded on Wednesday, compared
to 620,540 put contracts. The resultant single-session put/call
ratio arrived at 0.45, while the 21-day moving average slipped to
**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
Overseas trading is trading broadly higher once again this
morning, with all 10 foreign indexes that we track in positive
territory. The cumulative average return on the collective stands
at a gain of 0.87%. Asian stocks were bolstered by gains in Japan,
where the Nikkei rose to its highest level in five months on the
strength of exporters. Meanwhile, European markets were higher due
to a rally in the commodities sector, though traders remained
cautious ahead of this morning's European Central Bank meeting.
Currencies and Commodities
The euro has extended its rebound from a two-month low versus
the U.S. dollar this morning, as currency traders look to the
European Central Bank to address the region's sovereign debt
crisis. At last check, the U.S. Dollar Index was off 0.17% at
80.58. In commodities, crude futures are not taking advantage of
the weakening dollar, slipping 15 cents to $86.60 per barrel in
electronic trading. Gold futures, meanwhile, have added $3.40 to
trade at $1,391.70 an ounce in London.
Unusual Put and Call Activity:
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