Monday's late-session sell-off on the Dow Jones Industrial
Average (
DJIA
) appears to have been merely a prelude to today's plunge. The DJIA
traded between 10,200 and 10,100 for much of Monday, only to
plummet to within 70 points of the 10,000 level by the close.
Heading into the open this morning, DJIA futures are trading some
225 points below fair value, indicating that the blue-chip
barometer could open at or below its February low of 9,835.
Meanwhile, futures on the S&P 500 Index (
SPX
) are trading more than 30 points below fair value, potentially
placing the SPX below its February low of 1,044. If these levels
fail to hold, the next area of support for the DJIA lies near
9,700, while the SPX could find buyers near 1,030 - home to the
market's October 2009 lows. Finally, VIX watchers will want to keep
a close eye on the 50 level, as the CBOE Market Volatility Index (
VIX
) could make a beeline for this round-number level.
In equity news, EMC Corp. (
EMC
) was downgraded to "neutral" from "overweight" at JPMorgan Chase,
while the brokerage firm upgraded NetApp (
NTAP
) to "overweight" from "neutral." The firm noted that NetApp
provided a "more seamless and cost-effective approach to
implementing server virtualization." As for EMC, JPMorgan stated
that the company doesn't have a lot of "upside potential to top-
and bottom-line growth."
In earnings news, Sanderson Farms Inc. (
SAFM
) posted a profit of $35.1 million, or $1.62 per share, as revenue
rose 14% to $487.1 million. "Demand for chicken at retail grocery
stores remains strong and the ongoing issues we and our industry
face in export markets have not yet significantly disrupted the
markets," said CEO Joe Sanderson.
Finally, Donaldson Co. (
DCI
) reported a third-quarter net income of $49.5 million, or 62 cents
per share. Revenue increased 20% to $497.6 million. Analysts
estimated a quarterly profit of 59 cents per share on revenue of
$477.1 million.
Earnings Preview
On the earnings front, AutoZone Inc. (
AZO
), Cracker Barrel Old Country Store Inc. (
CBRL
), Medtronic Inc. (
MDT
), Trina Solar Limited (
TSL
), and TiVo Inc. (
TIVO
) are slated to release their quarterly earnings reports. Keep your
browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
GDP
Market Statistics
Equity option activity on the Chicago Board Options Exchange (
CBOE
) saw 1,232,396 call contracts traded on Monday, compared to
792,605 put contracts. The resultant single-session put/call ratio
arrived at 0.64, while the 21-day moving average rose to 0.66.
**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.**
Every morning, our research staff analyzes the prior day and
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Overseas Trading
Overseas trading is imploding, as none of the 10 foreign indexes
that we track are in positive territory. Furthermore, the
cumulative average return on the collective stands at a loss of
2.95%. In Asia, stocks plunged on concerns that the euro zone's
troubles might spread. Meanwhile, regional indexes in Europe
plunged to nine-month lows for similar reasons after the Bank of
Spain took over a small savings bank over the weekend. Nervousness
in the euro zone was exacerbated by heightened geopolitical
tensions in Korea after the North Korean leader Kim Jong-il ordered
his military to be on combat footing. Overseas market information
comes to you courtesy of
Schaeffer's Daily Bulletin
.
Currencies and Commodities
Fear of the plunge in global equities is driving investors into
the perceived safe haven of the U.S. dollar this morning. At last
check, the U.S. Dollar Index had soared 1.26% higher to 87.30. With
the greenback in rally mode, most commodities are trading sharply
lower. Specifically, crude futures are down $2.37 at $67.84 per
barrel, while gold futures have dropped $5.50 to trade at $1,188.50
an ounce in London.
Unusual Put and Call Activity:
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Education Center
topics on
Option Volume
and
Open Interest Configurations
.
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