The Dow Jones Industrial Average (DJIA) edged 35 points higher
on Tuesday, with the blue chip barometer even making a run at
11,700 early in the session. We could see the Dow test this
short-term technical hurdle once again today, as futures on the
DJIA are trading roughly 58 points above fair value. Following
suit, S&P 500 Index (SPX) futures are trading 6.6 points above
fair value. Dovetailing with yesterday's news that Japan would be
buying European debt, Portugal conducted a successful auction of
government bonds this morning, passing a key credit test and
lifting sentiment on Wall Street.
Technically, the DJIA rebounded from its 20-day moving average on
Tuesday, reclaiming its 10-day trendline in the process. Look for
the blue chip barometer to trade between the 11,600 and 11,750
levels for the short term. As for the SPX, the broad-market index
continues to be squeezed into resistance in the 1,275 area, as
support from its 10-day moving average rises into the area.
In earnings news, Chevron Corp. (
) said that it sees its fourth-quarter results topping the $3.77
billion profit it posted in the previous quarter. CVX also noted
that margins in its "downstream" refining and marketing business
will likely to show an improvement.
Also, Lululemon Athletica Inc. (
) raised its fourth-quarter profit outlook to between 55 cents to
57 cents per share. The company said that it sees sales in the
range of $237 million to $239 million.
Elsewhere, J.P. Morgan Cazenove downgraded Goldman Sachs Group
) to "neutral" from "overweight" this morning. The brokerage firm
said that it now prefers European investment banks to their U.S.
peers. Analyst Kian Abouhossein said in a note to clients that the
downgrade is due to valuation, but noted that Goldman also has the
most to lose from new U.S. regulations.
Finally, ITT Corp. (
) announced that its board has unanimously approved a plan to split
the company into three publicly traded firms. ITT will spin off its
water-related businesses and defense technology segment into two
new companies, leaving the manufacturing and engineering operations
within the existing company. ITT said its shareholders will own
stock in all three companies once the plan is completed, which is
expected to happen before the end of the year.
On the earnings front, Clarcor Inc. (
) and Infosys Technologies Limited (INFY) are slated to release
their quarterly reports. Keep your browser at
for more news as it breaks.
The Fed will release its Beige Book for January later today,
though the weekly report on U.S. petroleum supplies will hit the
Street first. Tomorrow offers up the weekly report on initial
jobless claims as well as December's producer price index, while
Friday rounds out the week with December's consumer price index,
retail sales figures, and industrial production numbers.
Equity option activity on the CBOE saw 1,483,651 call contracts
traded on Tuesday, compared to 798,543 put contracts. The resultant
single-session put/call ratio arrived at 0.54, while the 21-day
moving average held at 0.52.
**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
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Overseas trading looks strong this morning, as all 10 foreign
indexes that we track are in positive territory. The cumulative
average return on the collective stands at a gain of 1.09%. Asian
markets finished broadly higher on Wednesday, with
commodities-related stocks providing strength. Meanwhile, European
stocks are in rally mode, after Portugal auctioned 1.25 billion
euros in 2014 and 2020 government bonds, passing a key test for
credit markets. Later this week, Spain is auctioning 2016 bonds,
and Italy will auction 2026 government bonds.
Currencies and Commodities
The U.S. dollar is down versus the euro this morning, as the
16-nation currency gained strength in the wake of Portugal's bond
auction. At last check, the U.S. Dollar Index was down 0.07% at
80.79. Commodities have rolled over from strength in Asian trading,
despite the greenback's weakness. Crude futures have slipped 27
cents to $92.09 per barrel in electronic trading, while gold has
edged $1.20 lower to $1,383.10 an ounce in London.
Unusual Put and Call Activity:
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