Opening View: DJIA Futures Sharply Higher as Voters Head to the Polls

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The Dow Jones Industrial Average (DJIA) made a run at its 2010 highs near 11,250 on Monday, as Wall Street cheered better-than-expected Chinese and domestic manufacturing data. Gains were held in check, however, as traders were unwilling to take a stand ahead of today's midterm elections and Wednesday's Federal Open Market Committee statement on monetary policy. Market bulls are determined, however, and with voters heading to the polls, futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 64 points and 8.9 points above fair value, respectively. Traders should keep a close eye on support at 11,050 and resistance near 11,250 for the Dow, while the SPX should continue to trade between 1,180 and 1,195.

In earnings news, Pfizer Inc. ( PFE ) said that its third-quarter net income fell 70% to $866 million, or 11 cents per share, from $2.9 billion, or 43 cents per share, in the year-ago period. Adjusted earnings rose to 54 cents per share, as revenue increased to $16.2 billion. Wall Street analysts expected PFE to earn 51 cents per share, on revenue of $16.8 billion. For 2010, the company now expects adjusted earnings ranging from $2.17 per share to $2.22 per share, versus the consensus estimate for $2.21 per share for 2010.

Elsewhere, Archer Daniels Midland Co. ( ADM ) earned $345 million, or 54 cents per share, in the first quarter, down from $496 million, or 77 cents a share, in the year-ago period. Analysts were looking for earnings of 74 cents per share.

Finally, Tenet Healthcare Corp. ( THC ) swung to a third-quarter profit of $932 million, or $1.68 per share, from a loss of $3 million, or 1 cent per share, a year earlier. Revenue was unchanged at $2.26 billion. Excluding items, the company would have lost 1 cent per share. Analysts had estimated profit of 4 cents per share. Looking ahead, the company raised the lower end of its adjusted 2010 profit forecast to $1.05 billion to $1.1 billion.

Earnings Preview

On the earnings front, The Clorox Co. ( CLX ), DineEquity Inc. ( DIN ), Dollar Thrifty Automotive Group Inc. (DTG), Kellogg Company (K), Marathon Oil Corp. (MRO), MasterCard Inc. (MA), Newmont Mining Corp. (NEM), The St. Joe Company (JOE), Teva Pharmaceutical Industries Ltd. (TEVA), Career Education Corp. (CECO), Hartford Financial Services (HIG), Leap Wireless International Inc. (LEAP), OpenTable Inc. (OPEN), STEC Inc. (STEC), and Wynn Resorts Limited (WYNN) will release their quarterly reports today. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

Today is devoid of economic reports, though it is election day, so get out there and vote. The big news tomorrow, aside from today's election results, will likely be the Federal Open Market Committee's decision on monetary policy and interest rates. Also on tap for Wednesday are the Institute of Supply Management's services index for October, October auto sales, September factory orders, and the weekly report on U.S. petroleum supplies. The weekly initial jobless claims report comes out on Thursday, and we round out the week with October's nonfarm payrolls and unemployment rate.

Market Statistics

Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,207,276 call contracts traded on Monday, compared to 761,749 put contracts. The resultant single-session put/call ratio arrived at 0.63, while the 21-day moving average rose to 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 fine shape 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 0.23%. In Asia, regional indexes finished cautiously higher ahead of U.S. midterm elections and tomorrow's Fed policy statement. Also in the region, Australia's central bank surprised investors with an interest rate increase, while a similar move by the Reserve Bank of India created pressure for real estate developers in Mumbai. Across the pond in Europe, regional markets are trading broadly higher, though Spanish stocks are being dragged lower by poor earnings at banking giant BBVA. In economic news, euro-zone manufacturing production accelerated for the first time in three months, as the Markit final manufacturing purchasing managers' index rose to 54.6 in October.

Overseas markets

Currencies and Commodities

The U.S. dollar remains weak heading into tomorrow's statement from the Federal Open Market Committee. While expectations for heavy quantitative easing have diminished, the prospects of a more moderate round of stimulus are still having a negative impact on the dollar. At last check, the U.S. Dollar Index was off 0.34% at 77.03. Commodities, which typically trade inversely to the dollar, have found some lift this morning, with crude futures up 36 cents at $83.31 per barrel, while gold futures have added $7.00 to $1,357.60 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: ADM , CLX , DIN , PFE , THC

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