The Dow Jones Industrial Average (DJIA) once again flirted with
its 2010 highs in the 11,250 region on Monday. And though the
blue-chip barometer's rally eventually fizzled, the Dow still
posted its first close above the 11,150 level since May 3. That
same trepidation that turned stocks away from fresh annual highs is
lingering this morning, as futures on the DJIA and the S&P 500
Index (SPX) are trading roughly 14 points and 2 points below fair
value, respectively. Traders remain cautious ahead of economic
reports on consumer confidence and housing prices. Look for the
DJIA to remain between support at the 11,100 level and resistance
near 11,250. The SPX, meanwhile, has support at 1,180, and
resistance near 1,195.
In earnings news, Ford Motor Co. (
F
) said that its third-quarter net income rose to $1.7 billion, or
43 cents per share. Excluding items, net income totaled 48 cents
per share in the latest period. Revenue fell slightly to $29
billion from $30.3 billion. Wall Street analysts expected net
income of 38 cents per share on revenue of $27.9 billion. "This was
another strong quarter and we continue to gain momentum," said Ford
CEO Alan Mulally. "The key drivers for improvement in 2011 will be
our growing product strength, a gradually strengthening economy and
an unrelenting focus on improving the competitiveness of all our
operations."
Elsewhere, Texas Instruments (
TXN
) reported a third-quarter profit of $859 million, or 71 cents per
share, compared with a profit of $538 million, or 42 cents per
share, for the year-earlier period. Revenue was $3.7 billion, up
from $2.9 billion. Analysts had expected earnings of 69 cents per
share on revenue of $3.7 billion.
Finally, Coach Inc. (
COH
) posted a first-quarter profit of $188.9 million, or 63 cents per
share, as sales rose to $911.7 million from $761.4 million. The
company said it's "well positioned for the upcoming holiday season
and the balance of the fiscal year." It said it also remains
"confident" in its growth prospects and ability to drive sales and
earnings at a double-digit percentage pace. Analysts were looking
for a profit of 55 cents per share on sales of $845.7 million.
Earnings Preview
On the earnings front, AK Steel (
AKS
), ArcelorMittal (
MT
), Biogen Idec Inc. (BIIB), Bristol-Myers Squibb Co. (BMY), DuPont
(DD), Johnson Controls Inc. (JCI), Kimberly-Clark Corp. (KMB),
Lexmark International Inc. (LXK), U.S. Steel Corp. (X), Under
Armour Inc. (UA), Valero Energy Corp. (VLO), Broadcom Corp. (BRCM),
Massey Energy Co., (MEE), NetGear Inc. (NTGR), and Novellus Systems
Inc. (NVLS) will release their quarterly reports today. Keep your
browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
The Case-Shiller home price index for August and October's
consumer confidence index are on tap today. Tomorrow, September's
durable goods orders, September's new home sales, and the weekly
report on U.S. petroleum supplies are slated for release. Thursday
offers up the usual report on weekly initial jobless claims, while
Friday rounds out the week with an advance look at third-quarter
gross domestic product, October's Chicago purchasing managers'
index, and the final reading for the October University of Michigan
consumer sentiment index.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,220,092 call contracts traded on Monday, compared to
771,958 put contracts. The resultant single-session put/call ratio
arrived at 0.63, while the 21-day moving average held at 0.60.
**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.**
Overseas Trading
Overseas trading is in poor shape this morning, as only one of
the 10 foreign indexes that we track is in positive territory. The
cumulative average return on the collective stands at a loss of
0.37%. In Asia, regional markets were stuck in a rut, finishing
flat to lower following a session-long trading range. Of note,
Japanese stocks finished mostly lower, as the yen pressured
exporters by remaining near a 15-year high against the dollar. In
Europe, regional indexes were pressured by the basic resources
sector after ArcelorMittal (
MT
) forecast weakness for the group. Meanwhile, UBS (UBS) led
financials lower after reporting a disappointing quarterly
report.
Currencies and Commodities
The U.S. dollar has found a bit of a floor this morning, as the
greenback is headed higher versus most of its foreign competitors,
with the U.S. Dollar Index gaining 0.13% to 77.21 this morning.
However, those gains could be short-lived, as the Federal Open
Market Committee is widely expected to announce further
quantitative easing at next week's meeting. Both gold and crude
futures are struggling this morning, with yesterday's gains and the
dollar's bounce creating a bit of turbulence. At last check, gold
futures had slipped $2.80 to trade at $1,336.10 an ounce in London,
while the December crude contract has added a nickel to $82.57 per
barrel in electronic trading.
Unusual Put and Call Activity:
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