The Dow Jones Industrial Average (DJIA) suffered a sharp
sell-off on Tuesday, as complacency gave way to profit taking amid
overseas debt pressures. Today should pick up the pace a bit,
however, as jobless claims and weekly U.S. petroleum supplies are
on tap. Still, investors remain cautious, as futures on the DJIA
and S&P 500 Index (SPX) are trading only about 7 points and 1
point above fair value, respectively. Traders should continue to
keep their eyes focused overseas today, as European debt concerns
and a spike in China's trade surplus in September are driving
sentiment outside of Wall Street. Heading into the open, support
for the DJIA has shifted to the 11,300 region, with potential
resistance in the 11,400-11,450 region. As for the SPX, support
lies at 1,210, with resistance near 1,220.
In equity news, International Game Technology (
) posted a fiscal fourth-quarter profit of $20 million or 7 cents
per share, up from a loss of $29 million or 10 cents per share,
last year. On an adjusted basis, the company would have earned $53
million or 18 cents per share. Revenue came in at $496 million.
Wall Street was expecting a profit of 19 cents per share on revenue
of $496 million.
Elsewhere, MBIA Inc. (
) reported a third-quarter net loss of $213 million, or $1.06 per
share. Last year, the firm lost $728 million, or $3.50 per share.
MBIA said its adjusted pre-tax loss was $68 million in the latest
period. Chief Financial Officer Chuck Chaplin said insured losses
continued to moderate in the third quarter, versus the same periods
of 2008 and 2009.
Finally, Tesla Motors, Inc. (
) reported a third-quarter loss of $34.9 million, or 38 cents per
share, compared with a loss of $4.6 million, or 66 cents per share,
a year earlier. Sales came in at $31.2 million, down from $45.5
million, a year ago. Analysts were looking for a loss of 50 cents
per share with sales of $31.4 million.
On the earnings front, Maidenform Brands Inc. (
), Macy's Inc. (
), Polo Ralph Lauren Corp. (RL), Sara Lee Corp. (SLE), and Cisco
Systems Inc. (CSCO) will release their quarterly reports today.
Keep your browser at
for more news as it breaks.
The Street will receive the usual weekly report on crude
inventories today, along with the September trade balance figures
and the weekly initial jobless claims report. Friday rounds out the
week with the University of Michigan's first reading on November
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,628,409 call contracts traded on Tuesday, compared to
921,560 put contracts. The resultant single-session put/call ratio
arrived at 0.57, while the 21-day moving average held at 0.58.
**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 largely negative this morning, with only two
of the 10 foreign indexes that we track in positive territory. The
cumulative average return on the collective stands at a loss of
0.17%. Japan was one of the few bright spots in Asian trading, with
the Nikkei closing at a four-month high on strength in the banking
sector. However, worries about policy tightening in Beijing weighed
heavily on stocks in Shanghai and Hong Kong. Meanwhile, weakness in
the banking sector and concerns about sovereign debt has European
markets trading broadly lower.
Currencies and Commodities
The U.S. dollar remains front and center today, with the
greenback gaining ground on the euro in the wake of renewed
concerns for European debt. What's more, the dollar edged
fractionally higher versus the Japanese yen. At last check, the
U.S. Dollar Index was up 0.28% at 77.67. Due to their typically
inverse relationship with the dollar, gold and crude futures are
headed lower this morning. In electronic trading, crude for
December delivery has fallen 14 cents to $86.58 per barrel, while
gold futures are off $10.90 at $1,399.20 an ounce in London.
Unusual Put and Call Activity:
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