The Dow Jones Industrial Average (DJIA) soared more than 128
points on Friday, as Wall Street cheered a round of
stronger-than-expected economic data, including the addition of
67,000 new private sector jobs. However, the Dow was unable to
overtake resistance in the 10,450 region, which is home to its
200-day moving average. This overhead resistance, combined with
pressure on overseas banks and a drop in Germany's manufacturing
orders in July, is having a negative impact on pre-market trading.
Specifically, futures on the DJIA and the S&P 500 Index (SPX)
are trading roughly 54 points and 8 points below fair value,
respectively. Look for support to materialize near 10,350 for the
Dow, while the SPX may find a short-term floor in the 1,095 region.
Finally, the CBOE Market Volatility Index (VIX) closed Friday at
its lowest level since May 3. While the VIX may benefit from
weakness in the equities market today, look for the index to meet
with resistance near the 23.50 region, which is home to its 200-day
In equities news, shares of Barclays PLC (
) have fallen more than 3% in London after the company said that
Robert Diamond, the head of its investment-banking arm, would
become its new group chief executive starting early next year.
Diamond will succeed John Varley, who has occupied the position
Elsewhere, shares of Oracle Corp. (
) have jumped more than 5% in pre-market trading after the company
announced that former Hewlett-Packard Co. (
) CEO Mark Hurd will become its new president. Hurd was also named
to Oracle's board.
On the earnings front, Casey's General Stores Inc. (
), Navistar International Corp. (
), The Pep Boys (
), and Phillips-Van Heusen Corporation (
) will release their quarterly earnings reports today. Keep your
for more news as it breaks.
There are no major economic reports scheduled for release on
today. The Fed's Beige Book for September will be released on
Wednesday, along with the usual weekly report on U.S. petroleum
supplies. We'll get the weekly report on new jobless claims, along
with the trade balance report from the Commerce Department. There
are no major economic reports scheduled or Friday.
Equity option activity on the Chicago Board Options Exchange (
) saw 926,551 call contracts traded on Friday, compared to 521,730
put contracts. The resultant single-session put/call ratio arrived
at 0.56, while the 21-day moving average held at 0.63.
**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 is in poor shape 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
0.55%. In Asia, regional markets finished mixed, with Japan's
Nikkei dipping sharply once again due to renewed strength in the
yen. Chinese steel companies, however, headed mostly higher on
hopes for higher steel prices. European markets, meanwhile, are
broadly lower after Germany's economics minister reported that
manufacturing orders dropped 2.2% in July from the previous month.
Analysts were expecting a rise of 0.5%.
Currencies and Commodities
Despite Friday's rally in the equities market, risk aversion is
once again taking hold of investors, and many are retreating to the
safe haven of the U.S. dollar. Heading into the open this morning,
the U.S. Dollar Index has added 0.66% to trade at 82.58. The rising
dollar has pummeled oil prices, with the lead crude contract down
2.28% at $72.90 per barrel. Finally, gold futures are down $3.50 at
$1,247.60 an ounce in London.
Unusual Put and Call Activity:
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