Opening View: DJIA Set to Resume March Higher; Gold Rises to Another Record

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The Dow Jones Industrial Average (DJIA) took a breather yesterday, slipping roughly 37 points to snap a six-session winning streak. Apparently well rested, Wall Street bulls are wading back into the fray this morning, sending futures on the DJIA and the S&P 500 Index (SPX) roughly 29 points and 2.25 points above fair value, respectively. That said, any gains this week could be muted, as traders prepare for this week's Group of 20 (G20) finance ministers' meeting in Seoul, South Korea. Technically, the DJIA is settling in above support at the 11,400 level, though resistance still looms overhead in the 11,450-11,500 region. The SPX, meanwhile, is attempting to establish support near 1,220, with potential resistance overhead at the 1,230 level.

In equity news, Chevron Corp. ( CVX ) announced this morning that it is buying Atlas Energy Inc. ( ATLS ) for $3.2 billion in cash. Chevron will also assume $1.1 billion in debt as part of its purchase of ATLS. All told, the deal values ATLS at about $4.3 billion, or $38.25 per share - a premium of 21% over the stock's close at $31.72 on Monday.

Elsewhere, priceline.com Inc. ( PCLN ) reported a fiscal third-quarter income of $223 million, or $4.41 per share, compared with a profit of $319 million, or $6.42 per share, a year earlier. Revenue was $1 billion, up from $730.7 million. Adjusted income was $5.33 per share. Analysts had expected the company to report earnings of $4.97 per share, on revenue of $974.4 million.

LDK Solar Co. Ltd. ( LDK ) reported third-quarter net income of $93.4 million, or 72 cents per American Depositary share, up from $29.4 million, or 27 cents per ADS, in the same quarter last year. Revenue increased to $675.6 million from $281.9 million a year earlier. Analysts had forecast earnings of 43 cents per share on revenue of $590.8 million.

Earnings Preview

On the earnings front, Ebix Inc. ( EBIX ), Fossil Inc. (FOSL), hhgregg Inc. (HGG), JA Solar Holdings Co. Ltd. (JASO), K12 Inc. (LRN), Solarfun Power Holdings Co. Ltd. (SOLF), Tyco International Ltd. (TYC), Starwood Property Trust Inc. (STWD), and URS Corp. (URS) will release their quarterly reports today. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

September's wholesale inventories report arrives today, while the Street will receive the usual weekly report on crude inventories tomorrow, along with the September trade balance figures. Thursday offers up the weekly initial jobless claims report, while Friday rounds out the week with the University of Michigan's first reading on November consumer sentiment.

Market Statistics

Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,418,806 call contracts traded on Monday, compared to 764,823 put contracts. The resultant single-session put/call ratio arrived at 0.54, while the 21-day moving average fell to 0.58.

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

Overseas Trading

Overseas trading is in solid shape 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 0.26%. Asian markets were mixed, with a rising yen pressuring exporters in Japan, while the rest of the region remained cautious ahead of a G20 meeting later this week. Meanwhile, mining and commodities stocks have helped to lead European markets to their highest perch in two years.

Overseas markets

Currencies and Commodities

While the U.S. dollar has stolen the limelight lately, gold futures have stormed back into the headlines this morning. The December gold contract tagged another record high in London this morning, rallying to $1,422.10 an ounce. A reversal in the U.S. dollar is helping provide lift for the malleable metal, with the U.S. Dollar Index down 0.27% at 76.82. Finally, crude futures have added 38 cents to trade at $87.44 per barrel, after the International Energy Agency said that Chinese demand would drive the price of oil much higher in the coming years.

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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This article appears in: Investing , Options

Referenced Stocks: ATLS , CVX , EBIX , LDK , PCLN

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