There truly is no rest for the weary, as the Dow Jones
Industrial Average (
) may be headed for its sixth consecutive losing session. Poor
economic data sapped an early rally for the Dow on Wednesday, which
culminated in a 96-point plunge for the blue-chip barometer. What's
more, the venerable average plummeted roughly 10% during the second
quarter - its worst quarterly performance since 2009. The DJIA is
now trading just above its June 8 low near 9,750 - more than 100
points below May's "flash crash" low. The next layer of support for
the Dow rests near 9,700 - its October 2009 short-term bottom -
with 9,400 offering longer-term support on a steeper decline.
Meanwhile, the S&P 500 Index (
) is perched on its October 2009 low at 1,030. Short-term support
for the SPX lies near 1,020, while psychological support should
materialize near 1,000 on a sharp pullback. Heading into the open,
both the DJIA and the SPX are pointed lower, trading about 18
points and 2 points below fair value, respectively.
In equity news, Apollo Group Inc. (
) reported third-quarter net income of $179.2 million, or $1.18 per
share. Excluding one-time items, the company would have earned
$1.74 per share. Net revenue increased to $1.34 billion from $1.05
Elsewhere, Smith & Wesson (
) posted fourth-quarter earnings of $2.7 million, or 4 cents per
share. Revenue rose to $103.8 million from $99.5 million last year.
Analysts were looking for a profit of 4 cents per share on revenue
of $98.7 million.
Finally, Yahoo! Inc. (
) said that its board of directors authorized a $3 billion stock
repurchase program, which is to be implemented over the next three
years. Yahoo said in a regulatory filing that its board approved
the program last Thursday, and that the stock purchases may "take
place in the open market or in privately negotiated
On the earnings front, Constellation Brands Inc. (
) will post its quarterly results today. Keep your browser at
for more news as it breaks.
The usual weekly initial jobless claims report will arrive
today, as well as reports on May's construction spending and June's
auto sales. We round out the week tomorrow with the Big Kahuna:
nonfarm payrolls and the unemployment rate for June.
Equity option activity on the Chicago Board Options Exchange (
) saw 991,496 call contracts traded on Wednesday, compared to
603,515 put contracts. The resultant single-session put/call ratio
arrived at 0.61, while the 21-day moving average held at 0.66.
**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
Every morning, our research staff analyzes the prior day and
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Overseas trading continues to look sickly this morning, with
none of the 10 foreign indexes that we track in positive territory.
What's more, the cumulative average return on the collective stands
at a loss of 0.98%. In Asia, weakening economic data forced
regional markets sharply lower. Specifically, China's official PMI
for June fell to 52.1 from 53.9 in May. Additionally, Japanese
stocks tumbled for a fifth straight session, despite the Bank of
Japan's quarterly tankan survey showing sentiment among large
manufacturers turned positive for the first time in two years.
Across the pond in Europe, banks and commodities-related stocks are
leading a broad pullback, as traders react to poor economic data
out of China and the U.S. Overseas market information comes to you
Schaeffer's Daily Bulletin
Currencies and Commodities
The U.S. Dollar Index continues to slip lower this morning, as
the euro remains on its feet in the wake of the European Central
Bank's relief package. At last check, the index was off 0.53% at
85.57. Meanwhile, commodities are failing to take advantage of the
softening dollar. Crude futures, for example, have dropped 80 cents
to $74.83 per barrel, with traders concerned about weak
manufacturing data out of China, which could impact demand.
Additionally, gold futures have also given up some ground this
morning. In London, the front-month contract has fallen $2.10 to
$1,243.80 an ounce.
Unusual Put and Call Activity:
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