The Dow Jones industrial Average (DJIA) staged a late-session
rebound on Tuesday, recovering from an 80-point loss to finish
above the 10,850 level for only the second time since May. Heading
into the open this morning, futures on the DJIA and the S&P 500
Index (SPX) are trading roughly 14 points and 1.5 points below fair
value, respectively, as Wall Street's attention turns toward the
falling U.S. dollar. The weak greenback has already helped push
gold futures to another record high above $1,300 an ounce, while
crude futures are trending higher ahead of this morning's report on
U.S. petroleum supplies. Look for the DJIA to find support at
10,750 again, with resistance looming overhead at 10,900. Finally,
the SPX maintains support at 1,135, while the 1,150 level could
remain a roadblock for the index.
In equity news, Family Dollar Stores Inc. (
) reported that its fourth-quarter net income rose 23% to $74
million, or 56 cents per share, as sales advanced 8% to $1.96
billion. Analysts had been expecting earnings of 51 cents per
share. Looking ahead, Family Dollar said it expects fiscal 2011
earnings of between $2.95 and $3.15 per share for fiscal 2011,
versus Wall Street's expectations for a profit of $2.96 per share.
The company also said its board has authorized the repurchase of up
to $750 million in stock.
Also in earnings news, Sealy Corp. (
) swung to a third-quarter net loss of $15.8 million, or 16 cents
per share. Excluding one-time items, the company would have earned
4 cents per share. Revenue decreased 1% to $346.2 million. Analysts
had forecast the company to earn 5 cents per share on revenue of
On the earnings front, Actuant Corp. (
), and American Greetings Corp. (
) are slated to release their quarterly earnings reports today.
Keep your browser at
for more news as it breaks.
The usual weekly report on U.S. petroleum supplies will hit the
Street later this morning, while tomorrow brings the weekly report
on initial jobless claims, the latest look at second-quarter gross
domestic product, and the Chicago purchasing managers' index.
Friday will be chock full of economic data. The Commerce Department
alone will report on August construction spending, personal income
and spending, and September auto sales, while the University of
Michigan will give us a final look at consumer sentiment in
September and the Institute for Supply Management will release its
September manufacturing index.
Equity option activity on the CBOE saw 1,070,489 call contracts
traded on Tuesday, compared to 646,093 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 the dumps this morning, with only three
of the 10 foreign indexes that we track in positive territory. The
cumulative average return on the collective stands at a loss of
0.09%. Asian markets finished mostly higher on Wednesday, with
Japanese stocks bolstered by the Bank of Japan's
better-than-expected September tankan survey. However, Chinese
stocks slipped as concerns persisted that Beijing could further
tighten policies in the wake of upbeat manufacturing data. Across
the pond in Europe, regional indexes staged a broad retreat,
despite signs of improvement in the European Commission's monthly
economic sentiment index.
Currencies and Commodities
The U.S. dollar extended its backslide versus the Japanese yen,
with the greenback pulling back toward the ¥82.85 level it hit just
before the Bank of Japan intervened in the currency markets. At
last check, the U.S. Dollar Index was off 0.30% at 78.78. The
dollar's weakness has helped propel gold futures to yet another
record high, with the December contract rising $2.90 to $1,311.20
in London. Finally, crude futures are also benefiting from the
weaker dollar, rising 0.22% to $76.35 per barrel.
Unusual Put and Call Activity:
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