U.S. stocks are poised to start another session in the red
today, thanks to lingering concerns about Greece's ability to dodge
a default. Furthermore, Wall Street is taking a cautious stance
ahead of Federal Reserve Chairman Ben Bernanke's date with the
podium, with the central banker slated to address Capitol Hill at
10 a.m. Eastern. In fact, even Apple (
) futures are trading south of breakeven ahead of the bell, despite
expectations for the tech titan to unveil its latest iPhone later
today. Against this bearish backdrop, the Dow Jones Industrial
Average (DJIA) is bracing for a third straight triple-digit drop,
while the broader S&P 500 Index (SPX) is headed even deeper
into annual-low territory.
In earnings news, Deutsche Bank (DB - 32.83) said its 2011
pretax profit of 10 billion euros, or roughly $13.3 billion, is no
longer attainable, thanks to ongoing concerns about European debt.
In addition, the German financial firm said it's considering
cutting 500 jobs, and said it will take an impairment charge of
about 250 million euros on Greek sovereign debt. "The intensifying
European sovereign debt crisis led to sustained uncertainties among
market participants in the third quarter and thus to significantly
reduced volumes and revenues," said CEO Josef Ackermann.
Elsewhere, Team Inc. (TISI - 20.61) banked a fiscal
first-quarter profit of $6.8 million, or 33 cents per share, up 79%
from its year-ago earnings of $3.8 million, or 20 cents per share.
Revenue for the quarter improved 35% to $141.1 million, while gross
margin expanded to 31.5% from 30.2%. Analysts, on average, were
looking for a profit of just 25 cents per share on $123 million in
revenue. For the full fiscal year ahead, Team backed its forecast
for earnings of $1.45 to $1.60 per share.
Meanwhile, NRG Energy (NRG - 19.93) last night lowered its
full-year earnings forecast, citing an "extreme heat wave
unprecedented in both intensity and duration" that struck Texas
during the month of August. The sky-high temperatures resulted in
"record power demand and repeated extreme spikes in the wholesale
price of electricity," applying pressure to NRG's bottom line in
the process. The company now expects 2011 earnings of $1.775
billion to $1.85 billion, down from its previous guidance of $1.9
billion to $2.0 billion.
Today's earnings docket will also feature reports from Global
) and Yum Brands (
). Keep your browser at
for more news as it breaks.
Today, the Census Bureau will report on August factory orders.
Employment data starts to roll in on Wednesday, with the release of
ADP's private payrolls report for September and the Challenger,
Gray & Christmas update on job cuts. Also due out is the ISM
services index for September, as well as the usual report on weekly
petroleum supplies. Weekly jobless claims are the lone economic
report of note on Thursday. Finally, Friday's marquee event is the
Labor Department's nonfarm payrolls report for September. Also on
the day's docket are wholesale inventories and consumer credit for
Equity option activity on the Chicago Board Options Exchange (
) saw 983,138 call contracts traded on Monday, compared to 831,258
put contracts. The resultant single-session put/call ratio arrived
at 0.85, while the 21-day moving average was 0.73.
The major European indexes are in the red at midday, after
Jean-Claude Juncker warned that the next payment of aid to Greece
would likely be postponed until at least Oct. 13. The president of
the Eurogroup of finance ministers noted that auditors from the
European Union, International Monetary Fund, and European Central
Bank needed time to prepare a report on the country's fiscal
progress for the Eurogroup's review. Belgian bank Dexia extended
Monday's heavy losses, with government officials scheduled to meet
this evening to discuss how to rescue the Greece-dependent lender.
Elsewhere in the region, sector peer Deutsche Bank declined in
Germany after pulling its 2011 profit target. At last look, the
German DAX is down 4%, London's FTSE 100 is off 3.4%, and the
French CAC 40 is 3.1% lower.
Currencies and Commodities
The greenback has continued to gain ground this morning, with
the U.S. dollar index up about 0.3% at last check. Crude futures,
meanwhile, have extended their retreat into annual-low territory,
with the front-month contract down $1.63, or 2.1%, at last check.
Elsewhere, gold futures have continued their upward momentum, with
the malleable metal last seen $4.90, or 0.3%, higher.
Unusual Put and Call Activity:
For an explanation of how to use this information, check out our
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
for free daily delivery, straight to your inbox, before the
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.