Opening View: DJIA Looks to Solidify Hold on 11K as Earnings Season Ramps Up

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After closing above the 11,000 level for the first time since May, the Dow Jones Industrial Average (DJIA) appears to be headed higher once again this morning. In fact, futures on the DJIA and the S&P 500 Index (SPX) are trading roughly 19 points and 2 points above fair value, respectively. With the first full week of third-quarter earnings season upon us, Wall Street is turning its attention to corporate quarterly reports. While there are no major reports slated for today, Intel Corp. ( INTC ), JPMorgan Chase & Co. ( JPM ), and Google Inc. ( GOOG ) are just a few of the heavy hitters preparing to step into the limelight later this week. Looking at technical levels, the DJIA has tentative support at 11,000, with more solid footing at 10,900. Resistance could emerge near 11,150. As for the SPX, 1,170 could emerge as a ceiling, with 1,150 providing key support.

In equity news, LDK Solar Co., ( LDK ) lifted its third-quarter revenue shipments estimates. The company now expects revenue of $610 million to $640 million, versus its prior view for $570 million to $600 million. Wall Street is looking for $568.3 million in revenue for the quarter. Wafer shipments should total 550 megawatts to 570 megawatts, the company said, compared with its previous estimate of 520 megawatts to 550 megawatts. Module shipments, meanwhile, should reach 80 megawatts to 90 megawatts, above prior guidance for 75 megawatts to 85 megawatts.

Also in the solar sector, Canadian Solar Inc., ( CSIQ ) named Andrew Chen as chief financial officer. The company also affirmed its third-quarter and 2010 outlooks. For the quarter, CSIQ said that it would ship 190 megawatts to 200 megawatts at a gross-profit margin of 14.5% to 15.5%. For fiscal 2010, Canadian Solar estimates that shipments reached the middle to the high end of its earlier estimate of 700 megawatts to 800 megawatts.


Finally, ImmunoGen Inc. ( IMGN ) said it expects to report a net loss of between $60 million and $64 million for the fiscal year. The firm also announced that Novartis AG ( NVS ) will pay it $45 million, with potential milestone and royalty payments, to license its targeted antibody payload technology. Separately, IMGN said that an early-stage clinical trial of its lorvotuzumab mertansine anticancer compound showed encouraging early data, with 29% of patients showing a reduction of tumor volume and 22% showing no discernible increase.

Earnings Preview

On the earnings front, Global Payments Inc. ( GPN ) will release its quarterly report today. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

There are no major economic reports scheduled today, while the Fed's Federal Open Market Committee will release the minutes of its most recent meeting on Tuesday. On Wednesday, we'll get September import and export data, and the Treasury's budget numbers for September. Weekly initial jobless claims and the weekly report on U.S. petroleum supplies arrive on Thursday, along with the September producer price index and the August trade balance. Friday will be busy once again, with the September consumer price index, retail sales, the New York Fed's Empire State manufacturing index, and the University of Michigan's consumer sentiment index for October.

Market Statistics

Equity option activity on the CBOE saw 1,325,149 call contracts traded on Friday, compared to 817,937 put contracts. The resultant single-session put/call ratio arrived at 0.62, while the 21-day moving average held at 0.59.

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

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Overseas Trading

Overseas trading has a bullish bias 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 0.33%. Led by metals and mining stocks, Asian markets finished mostly higher, though Japan slipped roughly 1% as the yen continued to appreciate versus the U.S. dollar. In Hong Kong and mainland China, regional indexes rallied despite a Reuters report that China lifted banks' reserve requirements by half-a-percentage point to 17.5%. Across the pond in Europe, regional indexes rallied on hopes that the U.S. Federal Reserve and other central banks would step in to provide lift for the global economy.

Overseas markets

Currencies and Commodities

The U.S. dollar is treading water versus its major foreign competitors, as questions continue to surface regarding the future of U.S. monetary policy. With the greenback weakening versus the yen, and rising against the euro, the U.S. Dollar Index has added a mere 0.08% to trade at 77.25. Meanwhile, gold futures are trading modestly higher in London, adding $3.50 to $1,348.80 an ounce. Finally, crude futures are headed lower, slipping 20 cents to $82.46 per barrel.

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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