Opening View: DJIA Futures Fall as Irish Bailout Fails to Ease Concerns

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The Dow Jones Industrial Average (DJIA) clawed its way back above the 11,200 level on Friday, but the blue chip barometer's victory may be short-lived. Specifically, futures on the DJIA and the S&P 500 Index (SPX) are trading 19.5 points and 1.6 points below fair value, respectively, pointing toward a weak start to the regular session of trading. European debt concerns remain front and center, as some on Wall Street believe that a bailout of Ireland will not be enough to stabilize the region. Additionally, Moody's Investors Service said that a "multi-notch downgrade" of Ireland's Aa2 rating is now the "most likely" outcome of its credit review. Technically, the DJIA should find support near 11,100, with resistance holding firm in the 11,200-11,250 area. The SPX, meanwhile, should trade between the 1,200 and 1,190 levels.

In equity news, Tyson Foods Inc. ( TSN ) reported fourth-quarter net income of $208 million, or 57 cents per share, compared to a loss of $457 million, or $1.23 per share a year ago. Adjusted earnings were 64 cents per share. Sales rose to $7.44 billion from $7.24 billion last year. Analysts were expecting a profit of 56 cents per share on sales of $7.71 billion.

Elsewhere, Green Mountain Coffee Roasters Inc. ( GMCR ) announced that it will restate its financial performance for fiscal years 2007 to 2009 and the first three quarters of fiscal 2010 due to errors. The errors were found while the company prepared for its year-end audit and conducted an internal investigation prompted by the Securities and Exchange Commission. The adjustments are expected to lower cumulative net income by 4 cents to 5 cents per share, the company said. In pre-market trading, GMCR shares were last seen up nearly 12%, as investors were expecting the adjustments to be much worse.

Earnings Preview

On the earnings front, Analog Devices Inc. ( ADI ), Brocade Communications Systems Inc. ( BRCD ), Focus Media Holding Limited ( FMCN ), Hewlett-Packard Company (HPQ), Jack in the Box Inc. (JACK), La-Z-Boy Inc. (LZB), and Pacific Sunwear of California Inc. (PSUN) will release their quarterly reports today. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

There are no reports slated for release today, while tomorrow offers up the second estimate on third-quarter gross domestic product, accompanied by October's existing home sales and the minutes from the most recent Federal Open Market Committee (FOMC) meeting. The Street will be drenched in data on Wednesday, 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 1,692,728 call contracts traded on Friday, compared to 975,261 put contracts. The resultant single-session put/call ratio arrived at 0.58, while the 21-day moving average held at 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 struggling this morning, as only three of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a loss of 0.01%. In Asian trading, Japanese stocks logged their fourth consecutive winning session, as the yen weakened against the U.S. dollar. Meanwhile, Chinese stocks declined slightly after the country's central bank indicated that there is room for the yuan to appreciate against the greenback. In Europe, regional indexes are trading in the red, but are off their session lows after Ireland petitioned the European Union and the International Monetary Fund for aid.

Overseas markets

Currencies and Commodities

The U.S. dollar is trading lower this morning, after China's top banking official said that there is room for appreciation in the yuan versus the dollar, while Ireland finally petitioned for aid. As a result, the U.S. Dollar Index has slipped 0.24% to 78.32 in premarket trading. Against this backdrop, gold futures have added $3.30 to trade at $1,355.60 an ounce London, while crude for December delivery had risen 43 cents to $82.41 per barrel.

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: ADI , BRCD , FMCN , GMCR , TSN

Schaeffer's Investment Research

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