Opening View: DJIA Threatens 10K on Weak Chinese Data

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The Dow Jones Industrial Average ( DJIA ) could be on a collision course with 10,000 today, as futures on the DJIA are trading about 115 points below fair value. Traders across the globe are reacting negatively to news that China's leading economic indicators for April were revised sharply lower, sending markets in Europe and Asia down about 2% across the board. What's more, the S&P 500 Index ( SPX ) is trading about 14.5 points below fair value, and could find itself pulling back to within reach of support in the 1,060-1,065 region - an area that was home to support in February. Finally, the CBOE Market Volatility Index ( VIX ) retreated from the round-number 30 level in yesterday's trading, but the index could be headed sharply higher if futures trading on the SPX is any indication.

In earnings news, 3M Company ( MMM ) said it expects second-quarter sales of $6.6 billion to $6.75 billion due to growth of 16% to 18% in organic sales volume. Analysts are currently projecting revenue of $6.52 billion. 3M is slated to release its second-quarter earnings and 2010 outlook on July 22.

Elsewhere, Barnes & Noble Inc. ( BKS ) reported a fourth-quarter loss of $32 million, or 58 cents per share. Excluding one-time benefits, the bookseller would have reported a loss of 89 cents per share for the latest quarter. Analysts estimated a loss of 82 cents per share. Revenue rose to $1.32 billion from $1.11 billion in the previous year's quarter.

Finally, Micron Technology Inc. ( MU ) posted a third-quarter profit of $939 million, or 92 cents per share, as revenue more than doubled to $2.29 billion. Wall Street was expecting earnings of 43 cents per share on $2.11 billion in sales.

Earnings Preview

On the earnings front, General Mills Inc. ( GIS ) will post its quarterly results today. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

The economic calendar offers up the Case-Shiller home price index for April and the Conference Board's consumer confidence index. The usual weekly U.S. petroleum supplies will arrive on Wednesday, accompanied by ADP private sector employment numbers for June and the Chicago Purchasing Managers' Index for June. Thursday brings the usual weekly initial jobless claims, as well as reports on construction spending in May and auto sales in June. We round out the week with the Big Kahuna: nonfarm payrolls and the unemployment rate for June.

Market Statistics

Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 807,671 call contracts traded on Monday, compared to 552,519 put contracts. The resultant single-session put/call ratio arrived at 0.68, while the 21-day moving average rose to 0.65.

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

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Overseas Trading

Overseas trading is deeply mired in the red this morning, with none of the 10 foreign indexes that we track trading anywhere near positive territory. The cumulative average return on the collective stands at a loss of 2.29%. In Asia, regional markets were dragged lower by a 4.3% plunge in China's Shanghai Composite, as traders reacted to a correction in the country's leading economic indicators. Specifically, the Conference Board reported that leading indicators rose 0.3% in April, which was revised lower from a previously reported advance of 1.7%. The weaker-than-expected data prompted a flight to safety, benefiting U.S. and Japanese government debt. The wave of selling pressure cascaded over into Europe, as concerns over global economic growth gained momentum. Furthermore, The Financial Times reported that Spanish banks are lobbying the European Central Bank ( ECB ) to help ease the impact from the pending expiration of the ECB's one-year, 442 billion euro funding program. Overseas market information comes to you courtesy of Schaeffer's Daily Bulletin .

Overseas markets

Currencies and Commodities

The U.S. dollar and Japanese yen are both headed higher in early currencies trading, as investors are fleeing the equities market in favor of safer opportunities. Sparking this flight to safety is the realization that the European Central Bank's one-year funding program is set to expire. At last check, the U.S. Dollar Index was up 0.52% at 86.10. The rise in the dollar and news that a Gulf of Mexico storm will likely miss the BP oil spill region has driven crude oil prices lower heading into the open. In fact, crude for August delivery was last seen lower by more than 2% at $76.68 per barrel. Finally, gold futures are attempting to make some headway amid the rising global uncertainty, but a strong U.S. dollar is creating significant headwinds. As such, the front-month gold contract was last seek higher by about 80 cents at $1,239.40 an ounce in London.

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

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