The Dow Jones Industrial Average (DJIA) soared nearly 200 points
on Tuesday, placing the blue chip barometer within striking
distance of the 11,000 level. However, the looming ADP
private-sector employment report has Wall Street on pins and
needles heading into the open this morning, as futures on the DJIA
and S&P 500 Index (SPX) are trading roughly 26 points and 2.8
points above fair value, respectively. Economists are expecting a
rise of 20,000 jobs, on average, for the private sector. This
report is seen by many as a bellwether for Friday's official
nonfarm payrolls report and unemployment rate, so expect a sharp
reaction if the figures come in sharply above or below the 20,000
baseline. A better-than-expected report could easily send the DJIA
above the 11,000 mark, and potentially challenge its April highs.
Look for support to hold near 10,750 should things turn sour. As
for the SPX, resistance rests near 1,175, with potential short-term
support near 1,150.
In equity news, Costco Wholesale Corp., (
) reported fiscal fourth-quarter net income rose 16% to $432
million, or 97 cents per share, as net sales advanced 7.8% to
$23.59 billion. Comparable sales rose 6% from the same quarter last
year. Analysts were looking for a profit of 95 cents per share on
$24.15 billion in sales.
Elsewhere, Pfizer Inc. (
) said that it is reviewing the potential divesture of its Capsugel
business. PFE has hired Morgan Stanley to help with the review, and
intends to announce its decision by the end of the first quarter.
Capsugel generated $740 million in revenue last year, or about 1.6%
of the Pfizer's total 2009 revenue.
Finally, Eola Property Trust filed for a $675 million initial
public offering (IPO). Bank of America Merrill Lynch, Barclays
Capital, and Wells Fargo Securites are listed as underwriters of
the IPO. The company will trade on the New York Stock Exchange
under the symbol EOLA. Eola specializes in office buildings in the
Southeastern and mid-Atlantic United States.
On the earnings front, Constellation Brands, Inc. (
), Monsanto Company (
), and Marriott International, Inc. (
) will release their quarterly earnings reports today. Keep your
for more news as it breaks.
We'll get the usual weekly report on U.S. petroleum supplies
today, along with the ADP report on September private sector
employment. Tomorrow, the Labor Department will release the weekly
new jobless claims figures, while the Federal Reserve will report
on consumer credit use in August. Finally, September's nonfarm
payrolls report and unemployment rate will arrive on Friday, as
will the Commerce Department's report on August wholesale
Equity option activity on the CBOE saw 1,343,040 call contracts
traded on Tuesday, compared to 753,983 put contracts. The resultant
single-session put/call ratio arrived at 0.56, while the 21-day
moving average held at 0.59.
**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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Since China's Shanghai Composite remains closed through Friday,
Oct. 8, only nine of the 10 foreign indexes that we track are in
positive territory. The cumulative average return on the collective
stands at an impressive 0.82%. In Asia, real estate firms led a
broad rally in Japan after the central bank cut interest rates for
the first time in nearly two years. Hong Kong's Hang Seng vaulted
to its highest level of 2010. Across the pond in Europe, regional
indexes are headed broadly higher due to rising optimism on Wall
Currencies and Commodities
The U.S. Dollar Index is treading water just above breakeven
this morning, up 0.03% at 77.77. The dollar has gained ground
versus the euro this morning, rising in the wake of Fitch's
downgrade of Ireland's sovereign debt. However, the greenback
continues to struggle against a strengthening Japanese yen.
Elsewhere, gold for December delivery has powered steadily higher
in London, adding $6.60 to $1,346.90 an ounce. Finally, crude
futures are faltering ahead of this morning's U.S. stockpile data
from the Energy Information Agency. At last check, the December
crude contract was down 18 cents at $82.64, just shy of a
Unusual Put and Call Activity:
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