Futures are pointing higher this morning, as traders react to a
promising economic report out of China. A report out last night
revealed that the Chinese economy grew 9.5% in the second quarter
from the year-ago period -- beating analysts' expectations, and
bolstering China's stock markets. Back at home, U.S. investors are
marking time until 10 a.m. Eastern, when Federal Reserve Chairman
Ben Bernanke will take the stage to address the House Financial
Services Committee. On Tuesday, minutes from the Fed's meeting in
June suggested that some representatives supported additional
stimulus measures -- and analysts are hopeful that's something
Bernanke could address. Amid this backdrop, futures on the Dow
Jones Industrial Average (DJIA ) are trading some 92 points higher
while the S&P 500 Index (SPX ) is hovering nearly 10 points
north of fair value.
Capital One Financial Corp. (COF - 52.24) said that its
second-quarter income arrived at $911 million, or $1.97 per share,
up from $608 million, or $1.33 per share, in the year-ago quarter.
Revenue, meanwhile, arrived at $3.99 billion. Analysts had expected
the financial issue to post a slimmer profit of $1.73 per share.
COF also announced plans for a $2 billion stock offering, with the
proceeds going toward its acquisition of ING Direct. Ahead of the
open, COF has tacked on 0.5%.
Healthcare Services Group (HCSG - 17.57) announced that its
second-quarter profit climbed 13% to $9.8 million, or 15 cents per
share, from its year-ago earnings of $8.7 million, or 13 cents per
share. Revenue for the quarter rose 9.6% to $211.5 million. The
results were mixed, with Wall Street looking for a profit of 15
cents per share on $215 million in revenue. However, HCSG added
that its board approved a dividend increase of 4% to $0.15875 per
common share, which is payable Aug. 19 to shareholders of record at
the close on July 29.
ASML Holding N.V. (ASML - 34.88) is down 1.7% this morning, as
traders react to a particularly disappointing earnings report.
While the tech firm posted a consensus-beating second-quarter net
profit of 432 million euros, ASML's lackluster sales forecast
overshadowed this data. Specifically, ASML said that orders will
decline in the third quarter as a result of the lagging economy,
with the company projecting sales of just 500 million euros -- well
below last year's numbers, as well as the firm's original forecast
for sales between 900 million and 1 billion euros.
Finally, in M&A news, Kinetic Concepts, Inc. (KCI - 64.49)
announced that it will be bought by a consortium of bidders in a
deal worth $6.3 billion. The buyers, which include Apax Partners
and members of Canada pension firms, will be paying $68.50 per
share for the medical equipment issue -- a notable premium to KCI's
Tuesday close at $64.49. Ahead of the open, the shares have added
5.2%.
Earnings Preview
Today's earnings docket will feature reports from Adtran (
ADTN
), Bank of the Ozarks (
OZRK
), Emmis Communications (
EMMS
), Marriott International (
MAR
), and Yum Brands (
YUM
). Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
Today, we'll hear reports on import/export prices for June, the
Treasury budget, and weekly crude inventories. A round of inflation
data kicks off on Thursday, with the producer price index (PPI) and
core PPI for June. The weekly update on jobless claims will also be
released, along with retail sales for June and May's business
inventories. The economic calendar wraps up on Friday with the
consumer price index (CPI) and core CPI for June, the preliminary
Reuters/University of Michigan consumer sentiment index for July,
the Empire State manufacturing index, and reports on industrial
production and capacity utilization.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 928,232 call contracts traded on Tuesday, compared to
647,039 put contracts. The resultant single-session put/call ratio
docked at 0.70, while the 21-day moving average was perched at
0.69.
The spring 2011 issue of
SENTIMENT
magazine is now available here.
Overseas Trading
Asian markets ended higher today, thanks to a well-received
gross domestic product (GDP) report out of China. The economy
expanded 9.5% during the second quarter -- marking the tamest
growth since the third quarter of 2009, but narrowly exceeding the
consensus estimate of 9.4%. The upside surprise helped to offset
news that Moody's cut its rating on Ireland to junk territory,
which had sparked jitters earlier in the session. Elsewhere,
Agricultural Bank of China paced a financials rally in Hong Kong
after offering a solid first-half forecast, but a strong yen
continued to limit gains in Japan. By the close, China's Shanghai
Composite added 1.5%, Hong Kong's Hang Seng rose 1.2%, South
Korea's Kospi climbed 0.9%, and Japan's Nikkei tacked on 0.4%.
Stocks in Europe are cautiously higher at midday, as China's
upbeat economic data has boosted beaten-down investor sentiment.
Irish banks are taking a drubbing after that Moody's downgrade,
even as Italian financial firms rebound from heavy losses.
Meanwhile, cosmetics giant L'Oreal and chip issue ASML both
declined amid concerns about softening demand, with L'Oreal
confessing to weak second-quarter sales and ASML predicting a
slowdown in orders. At last check, the German DAX was up 0.6%,
London's FTSE 100 was up 0.2%, and the French CAC 40 added
0.2%.
Currencies and Commodities
Ongoing economic concerns have had an adverse effect on the
dollar, with the greenback down 0.3 point, or 0.3%, in pre-market
activity. However, the global debt dilemma has bolstered gold's
"safe haven" status, with the precious metal ascending to record
levels this morning. Specifically, gold futures have added 11.9
points, or 0.8%, to hover around $1,574.20 an ounce. Elsewhere,
crude futures are sitting on fractional losses this morning, down
0.05 point, or 0.1%.
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
.
Every morning, our research staff analyzes the prior day
and the overnight markets, and monitors the morning wires to
give you an accurate preview of the day to come. If you enjoyed
today's edition of Opening View, sign up
here
for free daily delivery, straight to your inbox, before the
opening bell.
Futures are pointing higher this morning, as traders react to a
promising economic report out of China. A report out last night
revealed that the Chinese economy grew 9.5% in the second quarter
from the year-ago period -- beating analysts' expectations, and
bolstering China's stock markets. Back at home, U.S. investors are
marking time until 10 a.m. Eastern, when Federal Reserve Chairman
Ben Bernanke will take the stage to address the House Services
Financial Committee. On Tuesday, minutes from the Fed's meeting in
June suggested that some representatives supported additional
stimulus measures -- and analysts are hopeful that's something
Bernanke could address. Amid this backdrop, futures on the Dow
Jones Industrial Average (DJIA ) are trading some 92 points higher
while the S&P 500 Index (SPX ) is hovering nearly 10 points
north of fair value.
Capital One Financial Corp. (COF - 52.24) said that its
second-quarter income arrived at $911 million, or $1.97 per share,
up from $608 million, or $1.33 per share, in the year-ago quarter.
Revenue, meanwhile, arrived at $3.99 billion. Analysts had expected
the financial issue to post a slimmer profit of $1.73 per share.
COF also announced plans for a $2 billion stock offering, with the
proceeds going toward its acquisition of ING Direct. Ahead of the
open, COF has tacked on 0.5%.
Healthcare Services Group (HCSG - 17.57) announced that its
second-quarter profit climbed 13% to $9.8 million, or 15 cents per
share, from its year-ago earnings of $8.7 million, or 13 cents per
share. Revenue for the quarter rose 9.6% to $211.5 million. The
results were mixed, with Wall Street looking for a profit of 15
cents per share on $215 million in revenue. However, HCSG added
that its board approved a dividend increase of 4% to $0.15875 per
common share, which is payable Aug. 19 to shareholders of record at
the close on July 29.
ASML Holding N.V. (ASML - 34.88) is down 1.7% this morning, as
traders react to a particularly disappointing earnings report.
While the tech firm posted a consensus-beating second-quarter net
profit of 432 million euros, ASML's lackluster sales forecast
overshadowed this data. Specifically, ASML said that orders will
decline in the third quarter as a result of the lagging economy,
with the company projecting sales of just 500 million euros -- well
below last year's numbers, as well as the firm's original forecast
for sales between 900 million and 1 billion euros.
Finally, in M&A news, Kinetic Concepts, Inc. (KCI - 64.49)
announced that it will be bought by a consortium of bidders in a
deal worth $6.3 billion. The buyers, which include Apax Partners
and members of Canada pension firms, will be paying $68.50 per
share for the medical equipment issue -- a notable premium to KCI's
Tuesday close at $64.49. Ahead of the open, the shares have added
5.2%.
Earnings Preview
Today's earnings docket will feature reports from Adtran (
ADTN
), ASML Holding (ASML), Bank of the Ozarks (
OZRK
), Emmis Communications (
EMMS
), Marriott International (
MAR
), and Yum Brands (
YUM
). Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
Today, we'll hear reports on import/export prices for June, the
Treasury budget, and weekly crude inventories. The afternoon
features the minutes from the latest meeting of the Federal Open
Market Committee (FOMC). A round of inflation data kicks off on
Thursday, with the producer price index (PPI) and core PPI for
June. The weekly update on jobless claims will also be released,
along with retail sales for June and May's business inventories.
The economic calendar wraps up on Friday with the consumer price
index (CPI) and core CPI for June, the preliminary
Reuters/University of Michigan consumer sentiment index for July,
the Empire State manufacturing index, and reports on industrial
production and capacity utilization.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 928,232 call contracts traded on Tuesday, compared to
647,039 put contracts. The resultant single-session put/call ratio
docked at 0.70, while the 21-day moving average was perched at
0.69.
The spring 2011 issue of
SENTIMENT
magazine is now available here.
Overseas Trading
Asian markets ended higher today, thanks to a well-received
gross domestic product (GDP) report out of China. The economy
expanded 9.5% during the second quarter -- marking the tamest
growth since the third quarter of 2009, but narrowly exceeded the
consensus estimate of 9.4%. The upside surprise helped to offset
news that Moody's cut its rating on Ireland to junk territory,
which had sparked jitters earlier in the session. Elsewhere,
Agricultural Bank of China paced a financials rally in Hong Kong
after offering a solid first-half forecast, but a strong yen
continued to limit gains in Japan. By the close, China's Shanghai
Composite added 1.5%, Hong Kong's Hang Seng rose 1.2%, South
Korea's Kospi climbed 0.9%, and Japan's Nikkei tacked on 0.4%.
Stocks in Europe are cautiously higher at midday, as China's
upbeat economic data has boosted beaten-down investor sentiment.
Irish banks are taking a drubbing after that Moody's downgrade,
even as Italian financial firms rebound from heavy losses.
Meanwhile, cosmetics giant L'Oreal and chip issue ASML both
declined amid concerns about softening demand, with L'Oreal
confessing to weak second-quarter sales and ASML predicting a
slowdown in orders. At last check, the German DAX was up 0.6%,
London's FTSE 100 was up 0.2%, and the French CAC 40 added
0.2%.
Currencies and Commodities
Ongoing economic concerns have had an adverse effect on the
dollar, with the greenback down 0.3 point, or 0.3%, in pre-market
activity. However, the global debt dilemma has bolstered gold's
"safe haven" status, with the precious metal ascending to record
levels this morning. Specifically, gold futures have added 11.9
points, or 0.8%, to hover around $1,574.20 an ounce. Elsewhere,
crude futures are sitting on fractional losses this morning, down
0.05 point, or 0.1%.
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
.
Every morning, our research staff analyzes the prior day
and the overnight markets, and monitors the morning wires to
give you an accurate preview of the day to come. If you enjoyed
today's edition of Opening View, sign up
here
for free daily delivery, straight to your inbox, before the
opening bell.