Editor's note: Delivery of Opening View was delayed today by
technical issues related to the storm in the U.S. Midwest and
Northeast. We apologize for any inconvenience.
The Dow Jones Industrial Average (DJIA) has pulled back from
premarket highs, after payrolls data came in lighter than expected.
According to the Labor Department, U.S. nonfarm payrolls rose a
mere 36,000 in January, though the unemployment rate unexpectedly
fell to 9.0%, a 21-month low. Economists were expecting a rate of
9.5% and a gain of 140,000 jobs. At last check, futures on the DJIA
and the S&P 500 Index (SPX) were pointing toward an opening
gain of about 9 points and 1 point, respectively.
Technically, the DJIA is headed toward its third consecutive open
above the 12,000 mark. From a short-term perspective, the Dow has
resistance at the 12,050 level and support at the key 12,000
region. As for the SPX, the broad-market index is set to open above
the 1,300 level again. The SPX has additional support at the 1,290
region, while resistance should manifest at the 1,320 level.
In earnings news, Tyson Foods Inc. (
) reported that its first-quarter profit, excluding items, rose to
75 cents per share, as sales increased to $7.62 billion from $6.64
billion. Wall Street analysts expected Tyson to earn 62 cents per
share on revenue of $7.17 billion. Looking ahead, the company said
it expects challenges in 2011, but the year has the "potential to
be comparable" to 2010. Operating margin during the fourth quarter
rose to 6.9% from 3.2%.
Finally, JDS Uniphase Corp. (
) reported fiscal second-quarter net income of $23.6 million, or 10
cents per share, compared with a loss of $19.5 million, or 9 cents
per share, for the year-earlier period. Revenue was $473.5 million,
up from $342.9 million. Adjusted income was 29 cents per share.
Analysts had expected the company to report earnings of 19 cents
per share, on revenue of $438.4 million.
On the earnings front, Aetna Inc. (
), Aon Corp. (
), The Clorox Company (
), Fortune Brands Inc. (FO), PPL Corporation (PPL), PulteGroup Inc.
(PHM), and Weyerhaeuser Company (WY) are slated to release their
quarterly earnings reports today. Keep your browser at
for more news as it breaks.
Equity option activity on the CBOE saw 1,480,279 call contracts
traded on Thursday, compared to 872,056 put contracts. The
resultant single-session put/call ratio arrived at 0.59, while the
21-day moving average rose to 0.54.
**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
Trading the News: A Contrarian View.
Check out this special report from Bernie Schaeffer
Overseas trading is mostly higher this morning, with five of the
10 foreign indexes that we track in positive territory. Trading in
Asia remained relatively, quiet as markets in China, Hong Kong,
Singapore, and Korea are closed for the Lunar New Year holiday.
Japan's Nikkei, however, rallied more than 1% on stronger corporate
earnings and merger and acquisition activity. Across the pond in
Europe, stocks are cautiously higher.
Currencies and Commodities
Most currencies and commodities are trading close to breakeven
this morning. At last check, the U.S. Dollar Index was higher by
0.02% at 77.76. Meanwhile, crude futures are also hovering just
above breakeven, with the March contract up 13 cents at 90.67 per
barrel. Gold futures, however, have shed $2.60 an ounce to trade at
$1,350.40 an ounce in London.
Unusual Put and Call Activity:
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