Thanks to a late-session buying spree, the Dow Jones Industrial
Average (DJIA) rebounded from a triple-digit loss to close down 78
points. The blue-chip barometer also maintained key support at the
10,750 level. Wall Street is looking brighter this morning, as
traders digest the Bank of Japan's surprise interest rate cut and
prepare for the Institute for Supply Management's (
) services index. Futures on the DJIA and the S&P 500 Index
(SPX) are trading roughly 33 points and 4.4 points above fair
value, respectively. Look for the Dow to hold support at the 10,750
level, while resistance remains at 10,900. As for the SPX, the
index should find a floor at 1,135, while 1,150 remains a
potentially significant roadblock.
In equity news, Wolverine World Wide Inc. (
) reported that third-quarter net income rose 27% to $34.1 million,
or 70 cents per share. Analysts were looking for earnings of 67
cents per share. For the year, WWW now expects to earn $2.04 to
$2.08 per share, compared to Wall Street's expectations for a
full-year profit of $2.07 per share.
Elsewhere, The Mosaic Co. (
) reported first-quarter net income of $297.7 million, or 67 cents
per share. Revenue increased to $2.19 billion from $1.46 billion.
Analysts had forecast earnings of 71 cents per share on revenue of
On the earnings front, Yum! Brands, Inc. (
) will release its quarterly earnings report today. Keep your
for more news as it breaks.
The Institue of Supply Management (
) offers up its services index for September today. We'll get the
usual weekly report on U.S. petroleum supplies on Wednesday, along
with the ADP report on September private sector employment. On
Thursday, the Labor Department will release the weekly new jobless
claims figures, while the Federal Reserve will report on consumer
credit use in August. Finally, September's nonfarm payrolls report
and unemployment rate will arrive on Friday, as will the Commerce
Department's report on August wholesale inventories.
Equity option activity on the CBOE saw 979,163 call contracts
traded on Monday, compared to 599,286 put contracts. The resultant
single-session put/call ratio arrived at 0.61, while the 21-day
moving average held at 0.59.
**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 solid this morning, as seven of the 10
foreign indexes that we track are in positive territory. The
cumulative average return on the collective stands at a gain of
0.33%. In Asia, regional markets were broadly higher after the Bank
of Japan unexpectedly cut interest rates to near zero. China's
markets remained closed for the National Day holiday, and will
reopen on Friday, Oct. 8. In Europe, stocks are headed toward the
end of a six-session losing streak, as the Japanese rate cut
bolstered investor sentiment across the region.
Currencies and Commodities
Gold is back in the headlines this morning, as the malleable
metal tagged yet another record high after the Japanese rate cut.
Gold for December delivery rose to an intraday high of $1,329.60 an
ounce in London, but was last seen up $10 at $1,326.80 an ounce.
Meanwhile, the U.S. Dollar Index is threatening to break below the
78 level for the first time since January. The greenback received a
short-lived boost from the rate cut, but the dollar has refused to
move far from its early morning lows. At last check, the index was
off 0.48% at 78.07. Finally, crude futures are taking advantage of
the weak dollar, rising 56 cents to $82.03 per barrel - just shy of
their August peak.
Unusual Put and Call Activity:
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