Opening View: DJIA Futures Fall, as 'Cyber Monday' Follows Black Friday Lower

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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 ( M ) 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 MarketWatch .

Meanwhile, look for Amazon.com Inc. ( AMZN ) and eBay Inc. ( EBAY ) 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. ( KFT ) initiated an arbitration proceeding to challenge Starbucks Corp.'s ( SBUX ) 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 35%.

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 deal.

Earnings Preview

There are no major earnings reports slated for release today. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

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.

Market Statistics

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.

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 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.

Overseas markets

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 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: AMZN , EBAY , KFT , M , SBUX

Schaeffer's Investment Research

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