Opening View: DJIA Futures Rally on Fed Move; 2010 Highs in Sight

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The Dow Jones Industrial Average (DJIA) closed at a two-year high on Wednesday, as Wall Street digested the midterm election results and the Fed's plan to purchase $600 billion in bonds. What's more, the blue chip barometer appears to be poised to take out its 2010 intraday high today, as futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 77 points and 10 points above fair value, respectively. Weekly initial jobless claims, slated for release early this morning, may be the only hurdle for the Dow today, as the rest of the economic calendar is clear. Look for the DJIA to find support in the 11,150-11,200 area, while resistance may materialize near 11,300-11,350. As for the SPX, 1,200-1,205 is an area to watch for technical resistance, while support could emerge near 1,195.

In earnings news, Sirius XM Radio Inc. ( SIRI ) said that it swung to a third-quarter profit of $67.6 million, or a penny per share, compared with a loss of $151.5 million, or 4 cents per share, in the year-ago period. Revenue rose to $717.5 million from $618.7 million. Analysts were looking for breakeven earnings on revenue of $719.1 million.

Elsewhere, Whole Foods Market Inc. ( WFMI ) reported fiscal fourth-quarter net income rose 58% to $57.5 million, or 33 cents per share. Analysts had expected the grocer to earn 28 cents. Sales rose 15% to $2.1 billion.

Finally, QUALCOMM Inc. ( QCOM ) reported a fiscal fourth-quarter profit of $865 million, or 53 cents per share, compared with a profit of $803 million, or 48 cents per share, for the year-earlier period. Revenue was $2.95 billion, up from $2.69 billion. Adjusted income was 68 cents per share. Analysts had expected the company report earnings of 59 cents per share, on revenue of $2.85 billion.

Earnings Preview

On the earnings front, DIRECTV ( DTV ), Frontier Oil Corp. ( FTO ), Fuel Systems Solutions Inc. (FSYS), Liz Claiborne Inc. (LIZ), PG&E Corp. (PCG), Suncor Energy Inc. (SU), Time Warner Cable Inc. (TWC), Activision Blizzard Inc. (ATVI), bebe stores inc. (BEBE), Blue Nile Inc. (NILE), CF Industries Holdings Inc. (CF), Crocs Inc. (CROX), Isis Pharmaceuticals Inc. (ISIS), Kraft Foods Inc. (KFT), SandRidge Energy Inc. (SD), and Starbucks Corp. (SBUX) will release their quarterly reports today. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

The weekly initial jobless claims report is the lone piece of economic data slated for release today, and we round out the week tomorrow with October's nonfarm payrolls and unemployment rate.

Market Statistics

Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,445,460 call contracts traded on Wednesday, compared to 800,243 put contracts. The resultant single-session put/call ratio arrived at 0.55, while the 21-day moving average held at 0.61.

Volatility indices

NYSE and Nasdaq summary

**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.**

Dow, S&P and Nasdaq futures

Overseas Trading

Overseas trading is in rally mode this morning, with all 10 foreign indexes that we track in positive territory. The cumulative average return on the collective stands at an impressive gain of 1.64%. Regional indexes in both Asia and Europe are trading sharply higher in the wake of the U.S. Fed's $600 billion bond buyback program, which fell largely in line with expectations. Europe is receiving a bit of extra lift, following strong quarterly reports from Unilever, BNP Paribas, and Swiss Re.

Overseas markets

Currencies and Commodities

The U.S. dollar has extended its recent run lower in the wake of yesterday's Fed announcement. Specifically, the U.S. Dollar Index has dropped 0.68% to 75.96, just above a fresh annual low for the index. Commodities are reveling in the greenback's demise, with crude futures up $1.16 at $85.85 per barrel, and gold rising a hefty $24.90 to $1,362.50 an ounce in London.

Currencies and commodities

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 .

Unusual options activity - puts

Unusual options activity - calls

Every morning, our research staff analyzes the prior day and the overnight markets, and monitors the morning wires to give you an accurate preview of the day to come. If you enjoyed today's edition of Opening View, sign up here for free daily delivery, straight to your inbox, before the opening bell.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Options

Referenced Stocks: DTV , FTO , QCOM , SIRI , WFMI

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