The Dow Jones Industrial Average (DJIA) appears poised to extend
Tuesday's cautious gains, as Wall Street cheers last night's
Republican victories. However, this enthusiasm is being met with
restraint ahead of the Federal Open Market Committee's (FOMC) 2:15
p.m. Eastern time statement on U.S. monetary policy, interest
rates, and potential quantitative easing. As such, futures on the
DJIA and the S&P 500 Index (SPX) are trading roughly 23 points
and 3.8 points above fair value, respectively. Technically, the
DJIA continues to trade between support near 11,050 and resistance
at 11,250, while the SPX is bound by the 1,180 and 1,195 levels.
That said, depending on the wording on in the Fed's statement this
afternoon, these short-term support/resistance levels could easily
fall by the wayside. Just remember to stay on your toes today.
In earnings news, Time Warner Inc. (
) said that third-quarter net income fell 21% $522 million, or 46
cents per share, from the year-earlier quarter. Adjusted profit
from continuing operations was 62 cents per share, as revenue
reached $6.38 billion. Analysts were expecting a profit of 53 cents
per share on $6.43 billion in revenue.
Elsewhere, Electronic Arts Inc. (
) reported a surprise adjusted second-quarter profit of $32
million, or 10 cents per share, as revenue fell 23% to $884
million. Analysts were expecting a loss of 10 cents a share on
revenue of $812.7 million.
Finally, WellPoint Inc. (
) reported a third-quarter net profit of $739.1 million, or $1.84
per share, while total revenue dropped 5.7% to $14.33 billion.
Excluding investment gains, the company earned $1.74 per share in
the quarter. Analysts had expected earnings of $1.57 per share on
revenue of $14.29 billion. Looking ahead, WLP expects 2010 earnings
of at least $6.60 per share, or $6.45 per share on an adjusted
basis. Analysts are currently expecting a 2010 profit of $6.38 per
On the earnings front, Aetna Inc. (
), Agrium Inc. (
), Alpha Natural Resources Inc. (ANR), AOL Inc. (AOL), CVS Caremark
Corp. (CVS), Hyatt Hotels Corp. (H), Molson Coors Brewing Co.
(TAP), PulteGroup Inc. (PHM), Qwest Communications International
Inc. (Q), TRW Automotive Holdings Corp. (TRW), Westlake Chemical
Corp. (WLK), Force Protection Inc. (FRPT), Genco Shipping &
Trading Limited (GNK), General Cable Corp. (BGC), Overstock.com
Inc. (OSTK), Prudential Financial Inc. (PRU), QUALCOMM Inc. (QCOM),
WebMD Health Corp. (WBMD), Whole Foods Market Inc. (WFMI), and
Yamana Gold Inc. (AUY). will release their quarterly reports today.
Keep your browser at
for more news as it breaks.
The big news today, aside from last night's election results,
will likely be the Federal Open Market Committee's decision on
monetary policy and interest rates. Also on tap are the Institute
for Supply Management's services index for October, October auto
sales, September factory orders, and the weekly report on U.S.
petroleum supplies. The weekly initial jobless claims report comes
out on Thursday, and we round out the week with October's nonfarm
payrolls and unemployment rate.
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,142,902 call contracts traded on Tuesday, compared to
639,578 put contracts. The resultant single-session put/call ratio
arrived at 0.56, while the 21-day moving average held at 0.61.
**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
Overseas trading is mixed this morning, as only six of the 10
foreign indexes that we track are in positive territory. The
cumulative average return on the collective stands at a gain of
0.37%. In Asia, regional indexes headed broadly higher, as optimism
built ahead of today's FOMC policy decision in the U.S. Trading in
Japan was closed due to a holiday. Across the pond in Europe,
regional markets are working on their fifth straight winning
Currencies and Commodities
The U.S. dollar, like the rest of Wall Street, is treading water
this morning, as investors await this afternoon's FOMC policy
statement. At last check, the U.S. Dollar Index was down 0.14% at
76.61. Commodities, which typically trade inversely to the dollar,
have found some lift this morning, with crude futures up 75 cents
at $84.65 per barrel, while gold futures have added $1.20 to
$1,358.10 an ounce in London.
Unusual Put and Call Activity:
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