The Dow Jones Industrial Average (
DJIA
) could be on its way to its biggest single-session gain of the
year, as investors cheer the approval of plans in Europe to bail
out Greece and prop up the euro. In fact, futures on the DJIA and
the S&P 500 Index (
SPX
) are trading a whopping 391 points and 51 points above fair value,
respectively. Amazingly, this surge comes less than a week after
the Dow plummeted nearly 1,000 points to its lowest levels of 2010.
Such a move could put the DJIA back above its 10-week and 20-week
moving averages, while the SPX would come close to recapturing the
1,200 level. What's more, a rally of this magnitude could also pull
the CBOE Market Volatility Index (
VIX
) sharply lower. The VIX spiked more than 85% last week, closing
above the 40 level for the first time since April 2009.
In equity news, Dynegy Inc. (
DYN
) reported a first-quarter net profit of $145 million, or 24 cents
per share, as revenue declined 5.1% to $858 million. Analysts had
been expecting a loss of 12 cents per share. "While our
first-quarter results continued to be impacted by lower demand, we
view the emerging economic recovery as a precursor to demand growth
and potentially more favorable power pricing in the future," said
CEO Bruce Williamson. DYN shares are up roughly 12.6% in pre-market
trading.
NRG Energy (
NRG
) posted a first-quarter profit $58 million, or 22 cents per share,
while revenue rose to $2.22 billion from $1.66 billion. Analysts
expected earnings of 31 cents per share. Excluding mark-to-market
gains, NGR's adjusted EBITDA rose to $601 million from $477
million. Separately, the Tokyo Electric Power Company said it would
invest $155 million in Nuclear Innovation North America's STP
3&4 nuclear project.
Earnings Preview
On the earnings front, Dean Foods Co. (
DF
), DISH Network Corp. (
DISH
), Energy Conversion Devices Inc. (
ENER
), ReneSola Limited (
SOL
), Tyson Foods Inc. (
TSN
), LDK Solar Co., Ltd. (
LDK
), MBIA Inc. (
MBI
), priceline.com Inc. (
PCLN
), and Winn-Dixie Stores Inc. (
WINN
) are slated to release their quarterly earnings reports. Keep your
browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
Market Statistics
Equity option activity on the Chicago Board Options Exchange (
CBOE
) saw 2,220,791 call contracts traded on Friday, compared to
1,772,509 put contracts. The resultant single-session put/call
ratio arrived at 0.80, while the 21-day moving average rose to
0.53.
**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.**
Every morning, our research staff analyzes the prior day and
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Overseas Trading
Overseas trading is on fire this morning, as all 10 foreign
indexes that we track are in positive territory. The cumulative
average return on the collective stands at an impressive gain of
4.64%. In Asia, stocks climbed following news that global
policymakers unleashed a massive $1 trillion rescue package to
contain the Greek debt crisis. Meanwhile, European shares spiked
after their worst weekly drop in nearly 18 months. Overseas market
information comes to you courtesy of
Schaeffer's Daily Bulletin
.
Currencies and Commodities
Crude futures are following stocks higher this morning, as the
European bailout plan is perceived as helping to prop up demand. At
last check, the front-month crude contract was up $2.68 at $77.79.
However, the U.S. dollar and gold futures are headed sharply lower
on the news. The dollar has fallen sharply against the euro,
sending the U.S. Dollar Index 1.47% lower to 83.21 in pre-market
trading. Finally, gold futures have plunged $18 to $1,192.40 an
ounce in London.
Unusual Put and Call Activity:
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