Opening View: DJIA Pointed South on Greek Debt; Wall Street Awaits Bernanke, New iPhone

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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 ( AAPL ) 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.

Dow, S&P and Nasdaq futures

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.

Earnings Preview

Today's earnings docket will also feature reports from Global Payments ( GPN ) and Yum Brands ( YUM ). Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

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 August.

Market Statistics

Equity option activity on the Chicago Board Options Exchange ( CBOE ) 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.

NYSE and Nasdaq summary

Volatility indices

Overseas Trading

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.

Overseas markets

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.

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.



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This article appears in: Investing , Options

Referenced Stocks: AAPL , CBOE , GPN , YUM

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