While the Dow Jones Industrial Average (DJIA) has hovered above
support at the 11,000 level all week, the blue-chip barometer may
be ready to leave this safety net behind this morning. Rallying on
better-than-expected reports from JPMorgan Chase & Co. (
) and Intel Corp. (
), as well as hopes for another round of quantitative easing by the
Federal Reserve, future on the DJIA are trading roughly 61 points
above fair value. The S&P 500 Index (SPX) is also in rally
mode, jumping 6.9 points above fair value. The Dow appears poised
to challenge short-term resistance at the 11,100 level, while the
SPX could trade above 1,180 for the first time since early May. As
for support, look for the DJIA to find a floor near 11,000, and
10,900 if things should go sour. For the SPX, buyers should emerge
near 1,160 if Wall Street decides to take profits.
In earnings news, JPMorgan Chase & Co. (
) shares have risen 1.4% after the company said that its
third-quarter net income rose 23% to $4.42 billion, or $1.01 per
share. Revenue dropped to $23.8 billion, from $26.6 billion.
Revenue on a managed basis totaled $24.3 billion in the latest
quarter. Wall Street was expecting a profit of 90 cents per share
on revenue of $24.3 billion.
Elsewhere, Intel (
) has climbed 1.11% in electronic trading after the company posted
a third-quarter profit of $2.96 billion, or 52 cents per share.
Revenue for the quarter was $11.1 billion, up from $9.4 billion.
Analysts had expected earnings of 50 cents per share, on revenue of
Finally, shares of CSX Corp. (
) have spiked nearly 5% in premarket trading, as traders cheer the
company's third-quarter report. For the period, CSX posted a profit
of $414 million, or $1.08 per share, as revenue climbed 16% to
about $2.7 billion. Analysts had forecast earnings of $1.04 per
share on revenue of $2.66 billion.
On the earnings front, ASML Holding N.V. (
) and Apollo Group Inc. (
) will release their quarterly reports today. Keep your browser at
for more news as it breaks.
September's import and export data and the Treasury's budget
numbers for September will arrive today. The usual weekly report on
U.S. petroleum supplies, weekly initial jobless claims, September's
producer price index, and the August trade balance are on tap for
Thursday. Friday will be busy once again, with September the
consumer price index, retail sales, the New York Fed's Empire State
manufacturing index, and the University of Michigan's consumer
sentiment index for October.
Equity option activity on the CBOE saw 1,222,569 call contracts
traded on Monday, compared to 728,197 put contracts. The resultant
single-session put/call ratio arrived at 0.60, 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 is in fine shape this morning, as all 10
foreign indexes that we track are in positive territory. The
cumulative average return on the collective stands at a gain of
1.15%. Asian markets finished broadly higher on Wednesday, with
Japanese stocks receiving a boost from a surprise rise in machinery
orders, while trading in China was hindered by weaker-than-expected
September trade data. Expectations for action by the U.S. Federal
Reserve is providing lift for European trading this morning. Also
improving sentiment is a euro zone report indicating that
industrial production rose 1% in August, versus expectations for a
gain of 0.7%.
Currencies and Commodities
A resurgence in global equities markets and the promise of
additional quantitative easing by the Federal Reserve has sapped
the U.S. dollar's strength this morning. At last check, the U.S.
Dollar Index was off 0.36% at 77.09. Commodities are taking
advantage of the greenback's weakness, with gold futures jumping
$11.80 to $1,358.50 an ounce in London, while crude futures have
added 93 cents to $83.38 per barrel.
Unusual Put and Call Activity:
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