U.S. stocks are pointed modestly lower this morning, with the
bulls taking a breather in the face of lingering concerns about
European debt. Specifically, Fitch Ratings reportedly called on the
European Central Bank (ECB) to do more to avert a
"cataclysmic" euro-zone collapse
, which -- along with a fourth-quarter economic contraction in
Germany -- has weighed on stocks both at home and abroad. On this
side of the pond, investors are also awaiting the Federal Reserve's
Beige Book -- set to hit the Street at 2 p.m. EST -- but are biding
their time by digesting headlines surrounding Eastman Kodak (EK),
Apple Inc. (
AAPL
), and Crocs (
CROX
), to name a few. At last check, the Dow Jones Industrial Average
(DJIA) is set to open with a 38.5-point drop, while the broader
S&P 500 Index (SPX) is lingering 5.4 points south of fair
value.
In equities news,
cash-strapped Eastman Kodak
(EK - 0.60) filed patent lawsuits against Apple Inc. (AAPL -
423.24) and HTC Corp. in the U.S. District Court in Rochester,
N.Y., and at the International Trade Commission in Washington, D.C.
Separately, EK said it's dividing its film group into its two other
business units, creating two business segments from the current
three. In pre-market trading, EK is set to soar 15.3%, while AAPL
is trading 0.3% lower.
In earnings news, Crocs, Inc. (CROX - 15.95) last night said its
fourth-quarter revenue will be at the high end of its guidance of
$200 million to $205 million. For comparison, Wall Street is
calling for current-quarter revenue of $204.5 million. Furthermore,
the footwear concern said it expects full-year sales to exceed $1
billion for the first time ever, topping analysts' expectations.
The company is slated to unveil its fourth-quarter and full-year
figures in late February. At last look, CROX is poised to open 5.3%
higher.
Finally, Synnex (SNX - 32.09) reported a fourth-quarter profit
of $50.2 million, or $1.37 per share, up from $37.5 million, or
$1.04 per share, in the year-ago period. Meanwhile, revenue rose
15.1% to $2.84 billion. Analysts, on average, were expecting a
profit of $1.14 per share on revenue of $2.82 billion. Looking
ahead, the company is expecting first-quarter earnings between 89
cents and 93 cents per share on revenue ranging from $2.48 billion
to $2.58 billion. This falls roughly in line with analysts'
predictions for a profit of 89 cents per share on revenue of $2.55
billion. Ahead of the bell, SNX is flirting with a 4.4% lead.
Earnings Preview
Today's earnings docket will also feature reports from 99 Cents
Only Stores (NDN), Lennar (
LEN
), SemiLEDs (
LEDS
), and SUPERVALU (
SVU
). Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
The Fed's Beige Book report will hit the Street today, and
traders will also be treated to speeches from central bankers
Charles Evans, Dennis Lockhart, and Charles Plosser. Thursday
brings us the weekly update on jobless claims, accompanied by
Commerce Department reports on business inventories and December
retail sales. The week wraps up with the mid-month Thomson
Reuters/University of Michigan consumer sentiment index, plus the
Labor Department's report on the trade deficit and import/export
prices.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,286,359 call contracts traded on Tuesday, compared to
735,292 put contracts. The resultant single-session put/call ratio
arrived at 0.57, while the 21-day moving average was 0.69.
Overseas Trading
Stocks in Asia ended mostly higher today, though widespread
profit-taking sent Shanghai-listed equities to their first drop in
four days. Resource-related securities paced the advancing equities
in China, with Angang Steel adding 4.4% on the heels of a
sector-wide upgrade to "overweight" at UOB KayHian. Elsewhere,
shares of Nomura Holdings muscled 3.2% higher in Japan, despite a
Wall Street Journal
report suggesting a looming departure for the firm's joint deputy
president. By the close, Japan's Nikkei tacked on 0.3%, Hong Kong's
Hang Seng gained 0.8%, and China's Shanghai Composite gave back
0.4%.
Meanwhile, the major European benchmarks are lower at midday,
after ratings agency Fitch reportedly nudged the ECB to increase
its purchases of euro-zone debt to avoid a collapse of the euro.
This news came just ahead of tomorrow's ECB meeting, where the
committee is expected to keep interest rates at their current lows
while holding back on any further monetary easing. Elsewhere,
traders are also digesting the latest economic data from Germany,
which showed the nation's economy grew 3% in 2011 - as expected -
but contracted slightly in the final quarter of the year. At last
look, the German DAX has fallen 0.4%, while the French CAC 40 and
London's FTSE have each surrendered 0.6%.
Currencies and Commodities
The greenback is on the rebound this morning, with the U.S.
dollar index up about 0.6%. Meanwhile, crude futures have pared a
portion of
yesterday's gains
, giving back 0.7% to trade near $101.58 per barrel. On the other
hand, gold futures have continued their upward momentum, with the
malleable metal last seen 0.2% higher to wink at $1,635 an
ounce.
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
.
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.