Futures are up slightly this morning, as investors remain
cautious in the wake of last week's selling spree. In fact, the Dow
Jones Industrial Average (DJIA ) closed last week below the
psychologically significant 12,000 level for the first time in over
two months, extending its losing streak to six consecutive weeks.
Yet while Dow futures are currently trading 32 points higher, with
no major economic reports on the docket, there could be few
domestic drivers to nudge the broad-market barometer in either
Quanex Building Products Corporation (NX - 18.10) reported this
morning that its second-quarter revenue rose to $203.11 million, up
from $199.39 million in the year-ago quarter. Analysts had expected
the company to post slimmer revenue of $195.96 million. However, NX
also reported a second-quarter loss of 4 cents per share -- nowhere
near analysts' estimate for a profit of 11 cents per share.
Chesapeake Energy Corporation (CHK - 29.24) will increase its
quarterly dividend by 17% to $0.0875 per share, the company
announced this morning. This is a relatively rare move for CHK,
which noted that it hasn't increased its dividend since June 2008.
The new dividend will be available to CHK shareholders on record as
of July 1.
Finally, Wendy's Arby's Group Inc. (WEN - 4.52) announced this
morning that it would be selling half of its namesake, Arby's
Restaurant Group Inc., to a private buyer formed by Roark Capital
Group. Under the terms of the agreement, WEN will maintain an 18.5%
interest in Arby's. The deal is valued at $430 million, and is
expected to close in the third quarter.
Today's earnings docket will feature a report from Pure
). Keep your browser at
for more news as it breaks.
There are no economic releases of note on today's agenda.
Tuesday will feature May's retail sales results. Also on the docket
is May's producer price index (PPI) from the Bureau of Labor
Statistics. Rounding out the day will be the government's business
inventories report for April, and the National Federation of
Independent Business' small-business index for May. As usual, we'll
hear the weekly update on domestic petroleum inventories on
Wednesday. Also scheduled are May's consumer price index (
), the Empire State manufacturing index for June, and reports on
industrial production and capacity utilization. On Thursday, the
Labor Department will release the latest data on weekly jobless
claims. Also, we'll hear reports on May's housing starts and
building permits, and the Philly Fed index for June. Finally, we'll
finish the week with the Reuters/University of Michigan consumer
confidence index for June, as well as the Conference Board's
leading economic indicators for May.
Equity option activity on the Chicago Board Options Exchange (
) saw 858,881 call contracts traded on Friday, compared to 879,794
put contracts. The resultant single-session put/call ratio docked
at 1.02, while the 21-day moving average was perched at 0.71.
The spring 2011 issue of
magazine is now available here.
Stocks in Asia ended mixed today, but a late-day bout of
strength in banking stocks helped Hong Kong break its seven-session
losing streak. In Japan, a weaker yen weighed on exporters, while a
disappointing profit forecast from Toyota Motor (
) pressured sector peers Nissan and Honda. Traders in Tokyo were
also spooked by a report showing that core machinery orders dipped
3.3% in April, pointing to a choppy post-quake recovery in
manufacturing. Meanwhile, caution reigned in China as traders
awaited inflationary data due out Tuesday, which could prompt
additional monetary-tightening measures. By the close, Japan's
Nikkei fell 0.7%, China's Shanghai Composite lost 0.2%, South
Korea's Kospi added 0.1%, and Hong Kong's Hang Seng rose 0.4%.
Markets are modestly higher in Europe at midday, recovering from
Friday's steep sell-off. Automaker Peugeot gained ground in France,
buoyed by an upgrade to "buy" at Citigroup, while mining stocks
rose on reports that Glencore International may be considering a
buyout of Eurasian Natural Resources. However, volume is relatively
light, due to public holidays across the region. At last check,
London's FTSE 100 is down 1.6%, France's CAC 40 is 0.3% higher, and
Germany's DAX has added 0.2%.
Currencies and Commodities
Crude futures have backpedaled this morning, more than erasing
last week's OPEC-inspired gains. Black gold's descent began on
Friday, after news broke that Saudi Arabia could diverge from the
rest of OPEC by boosting its production output. Ahead of the open,
crude futures were trading 1.34 points, or 1.35%, lower, at $97.95
a barrel. Meanwhile, gold futures are also starting the week on a
negative note, trading 3.1 points, or 0.2%, lower, as a stronger
dollar has lessened demand for the safe-haven asset. However, the
greenback is also suffering from a "case of the Mondays," with the
U.S. dollar index currently down 0.08 point, or 0.1%.
Unusual Put and Call Activity:
For an explanation of how to use this information, check out our
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
for free daily delivery, straight to your inbox, before the
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.