Opening View: DJIA Futures Edge Higher Ahead of Jobless Claims

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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. ( PEP ) announced that it will acquire 66% of Wimm-Bill-Dann Foods OJSC ( WBD ) 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 ( ARO ) 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 ( KKD ) 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.

Earnings Preview

On the earnings front, Del Monte Foods Company ( DLM ), 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 SchaeffersResearch.com for more news as it breaks.

Economic Calendar

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.

Market Statistics

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 0.57.

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 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.

Overseas markets

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.

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: ARO , DLM , KKD , PEP , WBD

Schaeffer's Investment Research

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