U.S. stock futures are pointed south this morning. Despite last
week's unexpected dose of promising domestic data, coming in the
form of a
drop in unemployment
, investors seem unable to take their cues from anywhere but across
the pond. Italy has snagged the spotlight from Greece in the
ongoing European fiscal fiasco. Specifically, rumors are swirling
of Italian Prime Minister Silvio Berlusconi's resignation in the
face of Tuesday's scheduled budget vote. Against this backdrop, the
DJIA finds itself trading 24 points south of fair value, while the
broader S&P 500 Index (SPX) is set to open about 4 points
lower.
Meanwhile, Cracker Barrel (CBRL - 42.93) said today that it
expects fiscal first-quarter earnings to range between 99 cents and
$1.04 per share, with revenue predicted to dip 0.1% to $598.4
million. Analysts, meanwhile, were looking for a first-quarter
profit of 90 cents per share on $603.2 million in revenue. For the
full year, CBRL anticipates a profit of $4.10 to $4.25 per share,
up from its previous outlook of $4.05 to $4.20 per share. CBRL is
up over 2% in pre-market trading.
Earnings Preview
Today's earnings docket will also feature reports from American
Public Education (
APEI
), BroadSoft (
BSFT
), Cameco (
CCJ
), CareFusion (
CFN
), Coeur d'Alene Mines (
CDE
), Delcath Systems (DCTH), Demand Media (DMD), Eagle Bulk Shipping
(EGLE), Echostar (SATS), Hologic (HOLX), Limelight Networks (LLNW),
Progressive (PGR), Rackspace Hosting (RAX), and Vivus (VVUS). Keep
your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
The economic calendar kicks off today with the Fed's monthly
report on consumer credit, while the NFIB small business optimism
index is slated to hit the Street on Tuesday. Data on wholesale
inventories is due out Wednesday, along with the usual report on
domestic petroleum supplies. Thursday brings a relative onslaught
of economic news, including import/export prices, the U.S. trade
balance, the Treasury budget, and the weekly report on jobless
claims. The week wraps up on Friday with the Thomson
Reuters/University of Michigan consumer sentiment survey for early
November.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 828,748 call contracts traded on Friday, compared to
673,138 put contracts. The resultant single-session put/call ratio
arrived at 0.81, while the 21-day moving average was 0.68.
Overseas Trading
Stocks in Asia ended lower today, with exporters taking a hit
due to ongoing uncertainty in the euro zone. Greek Prime Minister
George Papandreou said he will step down from his post once a
coalition government is formed, and the newly elected slate of
lawmakers must still secure approval for the country's bailout
deal. Meanwhile, Chinese property stocks slipped, after Premier Wen
Jiabao confirmed that the government is looking to drive a
"reasonable correction" in the housing market. By the close, Hong
Kong's Hang Seng gave up 0.8%, China's Shanghai Composite fell
0.5%, South Korea's Kospi declined 0.5%, and Japan's Nikkei dipped
0.4%.
The major European indexes are trading south of breakeven at
midday, as traders keep a wary eye trained on Italy. In addition to
the political turmoil in Greece, new rumors indicate that Italian
Prime Minister Silvio Berlusconi may also be on his way out.
Speculation today suggests the famously loose-lipped politician
could be forced to resign, as he faces a rising mutiny among his
own party members ahead of a crucial budget vote on Tuesday. Stocks
have pared their early losses at last check, suggesting that many
Europeans are hoping for a changing of the guard in Rome.
Currently, the German DAX is down 0.04%, the French CAC 40 is 0.10%
lower, and London's FTSE 100 is off 0.4%.
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
.
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