Opening View: DJIA Futures Rally on Strong Earnings from JPMorgan Chase and Intel

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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. ( JPM ) and Intel Corp. ( INTC ), 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. ( JPM ) 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 ( INTC ) 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 $11 billion.

Finally, shares of CSX Corp. ( CSX ) 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.

Earnings Preview

On the earnings front, ASML Holding N.V. ( ASML ) and Apollo Group Inc. ( APOL ) will release their quarterly reports today. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

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.

Market Statistics

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.

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

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Overseas Trading

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%.

Overseas markets

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.

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: APOL , ASML , CSX , INTC , JPM

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