The Dow Jones Industrial Average (DJIA) slipped 38 points
yesterday, as traders found very little excitement in the day's
economic and earnings reports. That lack of excitement should
change later this morning, as the ADP employment report is slated
to hit the Street, offering up a preview of Friday's non-farm
payrolls and unemployment rate. Ahead of the report, U.S. stock
futures are treading water just below breakeven, with the DJIA and
S&P 500 Index (SPX) hovering about 7 points and 1.2 points
below fair value, respectively. The Dow held above support in the
10,600 region yesterday, despite a solid dose of malaise on the
session. Look for this region to hold up again today, with the
10,450 level providing a backstop if the ADP report is worse than
expected. Meanwhile, the SPX should find support in the 1,115
region, which is home to its 200-day moving average, with the 1,100
level providing a floor during a steeper sell-off.
In equity news, Time Warner Inc. (
) posted second-quarter net income of $562 million, or 49 cents per
share, as net revenue rose 8% to $6.4 billion. Wall Street analysts
were expecting earnings of 45 cents per share and revenue of $6.2
billion. Looking ahead, TWX said it expects an adjusted 2010
earnings growth rate of at least 20% compared to 2009 earnings of
$1.83 per share.
Elsewhere, Garmin Ltd. (
) reported second-quarter earnings of $134.8 million, or 67 cents
per share. On an adjusted basis, the company earned 85 cents per
share, blowing past the consensus estimate for 73 cents per share.
Total revenue rose 9% to $729 million, versus Wall Street's view
for sales of $677.3 million. For the full year, Garmin forecast pro
forma earnings in the range of $2.75 to $3.15 per share,
surrounding the current consensus target of $2.90 per share.
Finally, Sirius XM Radio (
) said that it swung to second-quarter net income of $15.3 million,
or breakeven per share, from a loss of $159.6 million, or 4 cents
per share, last year. Adjusted revenue rose 16% to $705.6 million.
The company ended the quarter with 19.5 million subscribers, an
increase of more than 1.1 million from the year prior. Analysts
were expecting breakeven results on revenue of $690 million.
On the earnings front, Agrium Inc. (
), AOL Inc. (
), IntercontinentalExchange Inc. (
), Polo Ralph Lauren Corp. (
), Qwest Communications International Inc. (
), TRS Automotive Holdings Corp. (
), Transocean Ltd. (
), and Yamana Gold Inc. (
) are scheduled to release their quarterly earnings report today.
Keep your browser at
for more news as it breaks.
The market will be graced with the weekly report on U.S.
petroleum supplies later this morning, along with the Institute of
Supply Management (
) services index. But, the Street will likely pay the most
attention to the ADP report on private sector employment, the first
of three days worth of employment data. The weekly report on
initial jobless claims will be released on Thursday. On Friday, the
Labor Department will release the month's highly anticipated
non-farm payrolls and unemployment reports.
Equity option activity on the Chicago Board Options Exchange (
) saw 1,057,768 call contracts traded on Tuesday, compared to
629,432 put contracts. The resultant single-session put/call ratio
arrived at 0.60, while the 21-day moving average slipped to
**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
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Overseas trading is a little worse for wear this morning, as
only three of the 10 foreign indexes that we track are in positive
territory. The cumulative average return on the collective stands
at a loss of 0.41%. In Asia, Japanese markets were pummeled as a
strengthening yen negatively impacted exporters. In fact, the U.S.
dollar fell to an eight-month low versus the Japanese currency.
Meanwhile, China's service-sector growth accelerated in July,
marking the fastest rate of growth in three months and helping to
lift Shanghai and Hang Seng stock out of the red. Meanwhile, euro
zone retail sales were flat in June, according to Eurostat, while
Markit reported that the region's purchasing mangers' index
expanded at its fastest pace in three months. The mixed data has
offered little help, as regional indexes across the euro zone are
trading broadly lower.
Currencies and Commodities
For the first time this week, the U.S. Dollar Index is not
trading in negative territory heading into the open on Wall Street.
In fact, it would seem that the index has found a spot of
short-term support in the 80.50 region, gaining about 0.01% at last
check. Elsewhere, after putting in a strong performance yesterday,
crude futures are pulling back this morning, as traders prepare for
the latest report on U.S. petroleum supplies. In electronic
trading, the front-month crude contract is down 54 cents at $82.01
per barrel. Finally, the front-month gold contract is once again
flirting with the psychologically important $1,200 level. In London
trading, the malleable metal has added $10.60 to trade at $1,198.10
Unusual Put and Call Activity:
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