Stocks are set to
extend their winning streak
this morning, with investors taking their cues from across the
pond. At midday, European indexes are on the upswing, as traders
cheer a surprise round of quantitative easing from the Bank of
England, and look to European financial leaders for a plan to shore
up the region's banks. On the home front, however, Wall Street is
also mourning the passing of Apple Inc. (AAPL ) co-founder Steve
Jobs, who succumbed to cancer at the age of 56. Calling Jobs "among
the greatest of American innovators," President Obama noted that
"the world has lost a visionary." However, while AAPL shares are
pointed lower ahead of the bell, the major market indexes are set
to start the session in the black.
As alluded to earlier, Apple Inc. (AAPL - 378.25) is pointed
lower this morning, as investors digest the passing of Steve Jobs.
Said Microsoft (
MSFT
) co-founder Bill Gates of his colleague: "The world rarely sees
someone who has had the profound impact Steve has had, the effects
of which will be felt for many generations to come. For those of us
lucky enough to get to work with him, it's been an insanely great
honor. I will miss Steve immensely." At last check, the shares of
AAPL are set to start the session with a 1.8% drop.
In earnings news, Marriott International (MAR - 28.18) swallowed
a fiscal third-quarter loss of $179 million, or 52 cents per share,
reversing its year-ago profit of $83 million, or 22 cents per
share. On an adjusted basis, MAR earned 29 cents per share, while
revenue increased 8.5% to $2.87 billion. Wall Street was looking
for an adjusted profit of 27 cents per share on $2.83 billion in
revenue.
Elsewhere, DragonWave (DRWI - 49.44) swung to a fiscal
second-quarter loss of $2.2 million, or 6 cents per share, while
revenue was cut in half to $13.6 million. However, the results
actually surpassed analysts' expectations, which called for a
steeper loss of 21 cents per share on $12.8 million in revenue. The
firm's third-quarter forecast was slightly less impressive, though
-- DRWI is targeting revenue of $12 million to $15 million, just
short of Wall Street's consensus estimate of $15.5 million.
Finally, Ruby Tuesday (RT - 7.16) said its first-quarter
earnings fell to $3.1 million, or 5 cents per share, down 75% from
its year-ago profit of $12.4 million, or 19 cents per share.
Excluding items, RT reported earnings of 3 cents per share,
compared to an adjusted profit of 17 cents per share a year
earlier. Despite a 4.1% decrease in same-store sales, revenue rose
9.1% to $330.3 million. The results fell below expectations, as
analysts were looking for a profit of 5 cents per share on revenue
of $334 million. Looking ahead, RT predicted an adjusted
second-quarter loss of 4 cents to 8 cents per share, while Wall
Street is targeting a profit of 5 cents per share. The
Tennessee-based restaurateur also cut its full-year earnings
forecast to a range of 60 cents to 75 cents per share, down from
its July prediction of 75 cents to 85 cents per share.
Earnings Preview
Today's earnings docket will also feature reports from
AngioDynamics (
ANGO
), Constellation Brands (
STZ
), Helen of Troy (
HELE
), and International Speedway (
ISCA
). Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
Weekly jobless claims and same-store sales reports are on the
docket today. Tomorrow's marquee event is the Labor Department's
nonfarm payrolls report for September, though the Street will also
digest wholesale inventories and consumer credit for August.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,023,835 call contracts traded on Wednesday, compared
to 709,097 put contracts. The resultant single-session put/call
ratio arrived at 0.69, while the 21-day moving average was
0.72.
Overseas Trading
Bulls are also in the driver's seat in Europe, after the Bank of
England unveiled plans to purchase 75 billion pounds' worth of
assets as part of a quantitative easing initiative. On the other
hand, the European Central Bank (ECB) opted to stand pat on rates,
despite signs of rising inflation. Nevertheless, traders remain
upbeat about a plan to shore up the struggling financial sector.
"We are now proposing member states to have a coordinated action to
recapitalize banks and so to get rid of toxic assets they may
have," said European Commission President Jose Manuel Barroso in an
interview. At last check, London's FTSE 100 has added 2.3%, the
French CAC 40 has gained 2.4%, while the German DAX is 2.1%
higher.
Currencies and Commodities
The greenback is trading modestly higher this morning, with the
U.S. dollar index up 0.2% at last check. Meanwhile, after enjoying
their biggest single-session incline since May on Wednesday, crude
oil futures have extended their rebound to beyond $80 per barrel,
with the front-month contract last seen 1.5% higher. Elsewhere,
gold futures have also continued yesterday's upward momentum, with
the malleable metal tacking on $12.20, or 0.7%, to wink at
$1,653.80 an ounce.
Unusual Put and Call Activity:
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