The Dow Jones Industrial Average (DJIA) retreated nearly 100
points on Friday, closing below its 10-day moving average and the
11,100 level in the process. What's more, the Dow appears poised to
extend those losses today, with futures on the DJIA and the S&P
500 Index (SPX) trading roughly 53 points and 6.7 points below fair
value, respectively. News of a $113 billion bailout package for
Ireland has failed to attract buyers in the early going, as
sovereign debt in the euro zone remains a concern.
Even a better-than-expected turnout for Black Friday has fallen on
deaf ears. According to the National Retail Federation, roughly 212
million shoppers visited a store or a website during the Black
Friday weekend, 8.7% more than last year. Look for the DJIA to
potentially test support at the 11,000 level once again, with
resistance holding firm at 11,200. The SPX, meanwhile, has support
at 1,175 and resistance near 1,200.
With Black Friday sales likely topping expectations, the
spotlight on the retailing sector could intensify today. In
particular, Macy's Inc.'s (
) flagship store in New York's Herald Square saw 7,000 shoppers
waiting outside before the doors opened, compared with 5,000 last
year, Chief Executive Terry Lundgren said in an interview with
Meanwhile, look for Amazon.com Inc. (
) and eBay Inc. (
) to attract a wealth of attention today, with "Cyber Monday" in
full swing. AMZN tagged a fresh all-time high of $178.38 on Friday,
before pulling back to close at $177.20.
Elsewhere, Kraft Foods Inc. (
) initiated an arbitration proceeding to challenge Starbucks
) attempt to end its retail grocery coffee business with the firm.
Kraft says that under the agreement, Starbucks must compensate it
for the fair market value of the business plus a premium of up to
Finally, Cardinal Health Inc. (CAH) announced that it purchased
privately held Zuellig Pharma China for $470 million. The
acquisition is expected to add to Cardinal's adjusted 2011
earnings. Cardinal assumed about $60 million in debt as part of the
There are no major earnings reports slated for release today.
Keep your browser at
for more news as it breaks.
There are no major economic reports scheduled for release today.
Tomorrow, the Case-Shiller 20-city index for September will be
released, along with the Chicago purchasing managers' index for
November, and the November consumer confidence survey. Wednesday
will be busy. ADP and Challenger, Gray & Christmas will kick
off three successive days of jobs data, with the former reporting
on private sector growth in November, and the latter releasing data
on layoffs. The Institute for Supply Management's (ISM)
manufacturing index for November is also on tap for Wednesday, as
is the October construction spending and auto sales reports.
Weekly initial jobless claims arrive on Thursday, while Friday
brings the much anticipated nonfarm payrolls and the unemployment
rate for November, which will be accompanied by October factory
orders and the ISM's services index for November.
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 425,612 call contracts traded on Friday, compared to
280,807 put contracts. The resultant single-session put/call ratio
arrived at 0.66, while the 21-day moving average held at 0.57.
**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 mixed this morning, with only four of the 10
foreign indexes that we track in positive territory. The cumulative
average return on the collective stands at a loss of 0.14%.
Japanese stocks closed at a five-month high on Monday, as exporters
benefited from a declining yen. However, tensions between North and
South Korea limited gains in the region. Across the pond in Europe,
an initial rally following the approval of a bailout package for
Ireland gave way to selling pressure.
Currencies and Commodities
The Irish bailout is also having a negative effect on the euro
this morning. In fact, the European currency was last seen hovering
near a fresh two-month low versus the U.S. dollar. Against this
backdrop, the U.S. Dollar Index has gained 0.29% to trade at 80.59
in premarket activity, the index's highest level since Sept. 21.
Meanwhile, crude futures, which typically trade inversely to the
greenback, are showing strength in the face of a rising dollar. At
last check, the December crude contract was up 87 cents at $84.63
per barrel in electronic trading. Gold futures, however, have not
been as lucky, slipping $1.70 to trade at $1,362.60 an ounce in
Unusual Put and Call Activity:
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