The Dow Jones Industrial Average (DJIA) scored a small victory
yesterday, as the blue-chip barometer posted a fractional gain
after the Federal Open Market Committee (FOMC) forecast slow U.S.
economic growth. The DJIA enters today above support in the 10,700
region, but below resistance in the 10,800-10,850 area. Wall Street
appears ready to extend Tuesday's late-session pullback, as futures
on the DJIA and the S&P 500 Index are trading 23 points and 2.7
points below fair value, respectively. Elsewhere, gold is
dominating the landscape, with futures on the precious metal
soaring to record highs within reach of $1,300 an ounce.
In equity news, shares of Adobe Systems Inc. (
) have plunged more than 20% in premarket trading, as investors
flee the company in the wake of its fourth-quarter earnings
forecast. Specifically, ADBE said it expects fiscal fourth-quarter
sales between $950 million to $1 billion, below the current Wall
Street estimate of $1.03 billion. The company also forecast
fourth-quarter earnings of 48 cents to 54 cents per share, on the
low end of the consensus estimate for a profit of 53 cents per
Elsewhere, Cintas Corp. (
) said its fiscal first-quarter profit rose to $61.3 million, as
revenue increased to $923.9 million from $891.6 million last year.
Analysts estimated a quarterly profit of 38 cents per share on
revenue of $913.5 million.
Finally, Darden Restaurants (
) announced a first-quarter profit of $113.1 million, or 80 cents
per share, with sales rising to $1.81 billion. Analysts were
looking for a profit of 77 cents per share on revenue of $1.83
On the earnings front, CarMax Inc. (
), General Mills Inc. (
), Bed Bath & Beyond Inc. (
) and Red Hat Inc. (
) are slated to release their quarterly earnings reports today.
Keep your browser at
for more news as it breaks.
The usual weekly report on U.S. petroleum supplies is the lone
release slated for today, while weekly initial jobless claims will
be accompanied by August's existing home sales and leading
indicators tomorrow. Rounding out the week, durable goods orders
for August and new homes sales for August are on tap on Friday.
Equity option activity on the Chicago Board Options Exchange (
) saw 1,198,654 call contracts traded on Tuesday, compared to
741,126 put contracts. The resultant single-session put/call ratio
arrived at 0.62, 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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Overseas trading looks weak this morning, as only three of the
10 foreign indexes that we track are in positive territory. The
cumulative average return on the collective stands at a loss of
0.56%. In Asia, regional indexes closed mixed, with property
concerns rising to five-month highs in Hong Kong, while Japanese
stocks came under pressure due to a rising yen. Meanwhile, European
markets are trading broadly lower, as concerns about sovereign debt
have crept back to the forefront, though mining stocks are holding
Currencies and Commodities
The Fed's concerns that the U.S. economic recovery would remain
slow and underwhelming sent the U.S. dollar lower in overseas
trading. Heading into the open, the U.S. Dollar Index has fallen
0.8% to 79.80, marking the index's first foray below the 80 mark
since March. The dollar's decline has been gold's driving force, as
the malleable metal has surged $19 to a fresh record high of
$1,293.30 in London. Finally, despite the demand concerns raised by
the Fed's comments on Tuesday, crude futures are also being lifted
by a weak U.S. dollar. In premarket trading, the lead crude
contract has added 47 cents to $75.44 per barrel.
Unusual Put and Call Activity:
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