Futures on the Dow Jones Industrial Average (DJIA) are trading
sharply lower this morning, pointing toward a potential opening
loss of about 82 points. The S&P 500 Index (SPX) is also on the
rocks this morning, with futures trading about 9.4 points below
fair value. Yesterday's modest bump, following the release of
minutes from the Federal Open Market Committee's latest meeting,
has faded quickly, with a sharp drop in commodities and anxiety
ahead of today's ADP employment report taking center stage.
Technically, short-term resistance at the 11,700 level looms large
for the Dow, with the blue chip barometer closing a hair's breadth
below this hurdle on Tuesday. Look for the DJIA to struggle here
today, while support should materialize near the 11,550-11,600
region. Meanwhile, the SPX edged above 1,270 yesterday, but the
victory appears to be short lived. Resistance remains firm in the
1,275-1,280 area, with short-term support creating a floor near
1,255-1260.
In equities news, THQ Inc. (
THQI
) has announced a deal to develop video games based on popular
Mattel Inc. (
MAT
) toys like Barbie, Hot Wheels, and Fisher-Price. The companies
also said that they would like to expand current game and
interactive potential for brands like Rock 'Em Sock 'Em Robots,
Masters of the Universe, and more. THQ and Mattel hope to release
the first of the new games in time for the next holiday season.
Meanwhile, Family Dollar Stores Inc. (
FDO
) said that its first-quarter profit rose to $74.3 million, or 58
cents per share, from $67.6 million, or 49 cents per share, in the
year-ago period. Sales increased 9.5% to approximately $2 billion,
from $1.8 billion a year ago. Wall Street analysts were looking for
earnings of 61 cents per share on revenue of about $2 billion.
Looking ahead, Family Dollar expects 2011 earnings of $3.08 per
share to $3.23 per share, compared to the analyst target of $3.18
per share.
Finally, The Mosaic Co. (
MOS
) reported that it earned $1 billion, or $2.29 per share, in the
second quarter. Excluding items, Mosaic earned $1.01 per share,
compared to the 24 cents per share profit it earned in the same
quarter last year. Sales rose 59% to $2.7 billion, while gross
margin rose to 29% from 18%.
Earnings Preview
On the earnings front, Ruby Tuesday Inc. (
RT
) is slated to release its quarterly report. Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
The Institute for Supply Management offers up its December
services index today, while Challenger, Gray & Christmas and
ADP will provide separate looks at the employment picture. We'll
also get the usual weekly report on crude inventories. Tomorrow,
the weekly report on initial jobless claims hits the Street, while
Friday rounds out the week with December's nonfarm payrolls and
unemployment rate.
Market Statistics
Equity option activity on the CBOE saw 1,688,125 call contracts
traded on Tuesday, compared to 744,510 put contracts. The resultant
single-session put/call ratio arrived at 0.44, while the 21-day
moving average held at 0.51.
**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 weak 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
0.87%. Falling commodities' prices pressured stocks lower in Asian
trading, though Hong Kong's Hang Seng bucked the trend to finish
0.38% higher. The situation is similar heading into midday trading
in Europe, with commodities leading a steep retreat. Spanish
equities are among the weakest, after a Markit Spain Services
purchasing managers' index survey revealed that business activity
fell during December at its fastest pace in 12 months, tagging a
new six-month low.
Currencies and Commodities
The U.S. dollar is rebounding this morning, spelling more
trouble for commodities. At last check, the U.S. Dollar Index was
up 0.45% at 79.81, trading just below its 10-day moving average.
The greenback's strength has limited gold futures to a gain of only
about 30 cents to $1,379.10, while crude futures are down $1.16 to
$88.22 per barrel, their lowest level in more than a week.
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
.
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