Wall Street kicked off the month on a bearish note on Wednesday,
after dismal data -- notably, a foreboding employment report from
ADP -- sent stocks reeling right out of the gate. In pre-market
action this morning, the major market indexes are clinging to
breakeven, as traders await another round of pre-payrolls jobless
figures. In addition, data on factory orders and a slew of retail
sales reports will set the tone on the Street today, though many
investors will likely keep one eye on the sovereign debt drama
across the pond. Ahead of the bell, the Dow Jones Industrial
Average (DJIA ) is trading less than 2 points above fair value,
while the S&P 500 Index (SPX ) is fractionally lower at last
check.
In equities news, Hot Topic Inc. (HOTT - 7.52) was among the
first retailers to confess its monthly sales data. Last night, the
firm said same-store sales rose just 0.4% in May, falling short of
expectations for a 1.4% increase. In addition, the company
reiterated its forecast for a second-quarter loss of 9 cents to 11
cents per share, steeper than analysts' predictions for a per-share
loss of 9 cents. In pre-market trading, HOTT is up around 0.5%.
Elsewhere, an Illinois court ordered AMR Corp.'s (AMR - 6.09)
American Airlines to resume the publication of its flight schedules
and fares on Orbitz Worldwide's (OWW - 2.21) travel sites. In
December, American Airlines omitted its content from the sites
after Orbitz refused to adopt its new technology. "This
reinstatement ... is a win for transparency, consumer choice and
for all of our mutual customers," Orbitz said in a statement. At
last check, OWW is set to open more than 55% higher, while AMR is
flirting with a 0.3% loss.
On the earnings front, Coldwater Creek (CWTR - 1.83) swung to a
fiscal first-quarter loss of $30 million, or 32 cents per share,
from a year-ago profit of $2.3 million, or 3 cents per share.
Meanwhile, revenue plunged 26% to $179.8 million. Analysts, on
average, were expecting a slimmer per-share loss of 29 cents on
revenue of $180 million. "We remain intently focused on reinventing
our brand," said Chairman and CEO Dennis Pence. Ahead of the bell,
CWTR is up about 0.6%.
Finally, Joy Global Inc. (JOYG - 85.88) reported a fiscal
second-quarter profit of $162 million, or $1.52 per share -- up 34%
from the year-ago quarter, and above analysts' expectations for a
profit of $1.35 per share. Revenue rose 19% to $1.06 billion,
topping the Street's forecast for sales of $1.03 billion. For the
fiscal year, the company upped its earnings outlook to a range of
$5.30 to $5.60 per share, from its previous guidance for $5.10 to
$5.40 per share. Analysts, on average, were calling for fiscal-year
earnings of $5.39 per share. At last look, JOYG has added roughly
3.8%.
Earnings Preview
Today's earnings docket will also feature reports from
Cyberonics (
CYBX
), Exide Technologies (
XIDE
), Quiksilver (
ZQK
), Verifone Systems (
PAY
), and The Fresh Market (
TFM
), to name a few. Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
Today, the government's weekly jobless figures will take center
stage, along with reports on April factory orders and first-quarter
productivity. Finally, the economic calendar goes out with a bang
on Friday, with the highly anticipated release of Uncle Sam's
nonfarm payrolls report.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 989,292 call contracts traded on Wednesday, compared to
761,026 put contracts. The resultant single-session put/call ratio
docked at 0.77, while the 21-day moving average inched higher to
0.65.
The spring 2011 issue of
SENTIMENT
magazine is now available here.
Overseas Trading
Stocks in Asia slumped today, with traders taking their cues
from the drastic sell-off on Wall Street. Weak U.S. sales pressured
automakers in the region, while lower commodity prices weighed on
energy stocks. Meanwhile, political unrest in Japan is adding to
the atmosphere of uncertainty, with Prime Minister Naoto Kan
dodging a no-confidence vote by offering to resign after he's
handled the worst of the nuclear crisis. By the close, Japan's
Nikkei declined 1.7%, Hong Kong's Hang Seng gave up 1.6%, China's
Shanghai Composite shed 1.4%, and South Korea's Kospi lost
1.3%.
Economic woes have sent European shares into the red at midday.
In addition to poorly received U.S. data, traders are responding to
a three-notch downgrade of Greek debt by Moody's. The ratings
agency slapped a junk-grade Caa1 rating on the troubled country,
citing "an even chance of default over the rating horizon" as the
catalyst behind the downgrade. At last check, the French CAC 40 is
down 1.1%, the German DAX has dipped 1.3%, and London's FTSE 100 is
off 0.8%.
Currencies and Commodities
The greenback has continued its retreat this morning, with the
U.S. dollar index down about 0.4%. Elsewhere, after pulling back
amid concerns of ebbing demand, black gold has pared a portion of
yesterday's losses. At last check, the front-month contract has
added $0.17, or almost 0.2%, to linger near $100.46 per barrel.
Meanwhile, gold futures have extended their uptrend as traders
continue to seek safety, with the front-month contract advancing
$1.10, or nearly 0.1%, to trade around $1,544.30 an ounce.
Unusual Put and Call Activity:
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