While the Dow Jones Industrial Average (
DJIA
) was up more than 90 points at one point on Tuesday, the bulls
were unable to hold onto the lead. The DJIA was bound by short-term
resistance in the 10,850 area (home to its 10-day moving average)
and support at the 10,700 level. Barring any major developments --
today is shaping up to be pretty quiet -- these levels should
define the DJIA's trading range. Meanwhile, the S&P 500 Index (
SPX
) found support at the 1,150 level, while resistance materialized
in the 1,170 area and the index's 10-day trendline. Heading into
the open, futures on the DJIA and the SPX are trading about 19
points and 2.3 points above fair value. Speaking of trading ranges,
the CBOE Market Volatility Index (
VIX
) has settled in between the round-number 30 level and its 10-day
trendline during the prior two sessions. The VIX is also on course
to close its third consecutive week above its 10-week and 20-week
moving averages, a feat last accomplished in early February.
In earnings news, The Walt Disney Co. (
DIS
) said that its second-quarter net income was $953 million, or 48
cents per share, on sales of $8.58 billion. The company cited
nearly $1 billion in box-office receipts from "Alice in Wonderland"
for its stronger-than-expected report. Speaking of which, analysts
had expected earnings of 45 cents per share on sales of $8.39
billion. However, DIS was last seen 2.18% lower in pre-market
trading.
Elsewhere, Electronic Arts Inc. (
ERTS
) said it swung to a fourth-quarter profit of $30 million, or 9
cents per share. Excluding the effect of deferred sales of certain
games, as well as stock options, the company said it would have
earned $23 million, or 7 cents per share. Excluding deferred sales,
net revenue was $850 million. Analysts were expecting net revenue
of $835.4 million with earnings of 5 cents per share. Investors are
not very happy with ERTS results, sending the stock down more than
4% in pre-market trading.
Finally, be sure to check out our
Trading Floor Blog
today and tomorrow, as my colleague Elizabeth Harrow is filing live
reports from the Schaeffer's booth on the floor of the Las Vegas
Money Show.
Earnings Preview
On the earnings front, Macy's Inc. (
M
), Cisco Systems Inc. (
CSCO
), DryShips Inc. (
DRYS
), and Whole Foods Market Inc. (
WFMI
) are slated to release their quarterly earnings reports. Keep your
browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
Market Statistics
Equity option activity on the Chicago Board Options Exchange (
CBOE
) saw 1,430,894 call contracts traded on Tuesday, compared to
977,761 put contracts. The resultant single-session put/call ratio
arrived at 0.68, while the 21-day moving average rose to 0.55.
**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
the overnight markets, and monitors the morning wires to give you
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Overseas Trading
Overseas trading has a positive bias 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
0.42%. In Asia, the various markets finished mixed, amid persistent
worries about the euro zone's fiscal health. Meanwhile, European
shares bounced back in morning trading, as strong banking results
boosted financial shares, while tough austerity measures announced
by Spain provided some relief to jittery investors. Overseas market
information comes to you courtesy of
Schaeffer's Daily Bulletin
.
Currencies and Commodities
Safe-haven buying and fears of growing inflationary risks have
provided a boost for gold prices this week. After tagging a fresh
all-time high of $1,220.03 in U.S. trading on Tuesday, gold futures
have rocketed $20.60 higher in London to trade at $1,240.90 an
ounce. Meanwhile the U.S. dollar has hit a snag this week, as the
euro and the British pound have benefited from stabilization in the
region, following the Greek bailout and the selection of David
Cameron as the new British Prime Minister. At last check, the U.S.
Dollar Index was up a mere 5 cents at $84.52. Finally, crude
futures are headed lower this morning on supply concerns ahead of
this morning's report on U.S. petroleum supplies. Heading into the
open, crude futures are down 23 cents at $76.12 per barrel in
electronic trading.
Unusual Put and Call Activity:
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Education Center
topics on
Option Volume
and
Open Interest Configurations
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