U.S. stocks are cautiously higher ahead of the bell, as Wall
Street digests the death of North Korean leader Kim Jong-il, who
reportedly suffered a fatal heart attack over the weekend. In
September, the dictator named the youngest of his three sons, Kim
Jong-un, his successor. Elsewhere, while a handful of buyers remain
spooked by
Fitch's late-week warning
on euro-zone debt ratings, more than a few bargain hunters have
emerged in the wake of
last week's sell-off
. Against this backdrop, the Dow Jones Industrial Average (DJIA)
and S&P 500 Index (SPX) are flirting with modest gains ahead of
the bell.
On the earnings front, Jakks Pacific (JAKK - 17.35) lowered its
2011 earnings outlook, citing "a difficult retail sales environment
for toys, especially during the important holiday season." Now, the
firm expects 2011 adjusted earnings of 37 cents to 40 cents per
share on sales of about $660 million. Previously, JAKK forecast an
adjusted full-year profit of $1.32 to $1.35 per share on sales of
roughly $770 million to $775 million.
In equities news, Wasau Paper (WPP - 8.07) agreed to sell its
remaining Timberland holdings via a duo of transactions.
Specifically, the firm said it will sell the 80,000-plus acres in
northern Wisconsin to Lyme Timber Co. and Forestland Group, in a
pair of deals valued at $42.9 million. Both transactions are slated
for completion before the end of the calendar year.
Earnings Preview
Today's earnings docket will feature reports from Red Hat (
RHT
), Oxygen Biotherapeutics (
OXBT
), and Shiloh Industries (
SHLO
). Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
The economic calendar is relatively light today, with only the
NAHB's monthly housing stats on tap. On Tuesday, the housing trend
continues with the government's latest figures on housing starts
and building permits slated for release. It's essentially more of
the same on Wednesday, when November's existing home sales data,
along with the regularly scheduled crude inventories report, hits
the Street. On Thursday, the economic calendar heats up with the
release of the weekly jobless figures, the Thomson
Reuters/University of Michigan consumer sentiment index, the
Conference Board's index of leading economic indicators, and the
government's latest estimate on third-quarter gross domestic
product (
GDP
). Finally, we head into the long holiday weekend with data on
durable goods, personal income and spending, and new home sales for
November.
Market Statistics
Equity option activity on the Chicago Board Options Exchange (
CBOE
) saw 953,636 call contracts traded on Friday, compared to 870,724
put contracts. The resultant single-session put/call ratio arrived
at 0.91, while the 21-day moving average was 0.73.
Overseas Trading
Stocks in Asia ended lower today, with Seoul-listed securities
pacing the regional decline after the death of North Korean leader
Kim Jong-il. The news proved to be a boon for defense issues, but
most other equities tumbled amid the threat of possible
geopolitical turmoil. Meanwhile, property stocks struggled in
China, thanks to disappointing housing data released over the
weekend. By the close, South Korea's Kospi slid 3.4%, Japan's
Nikkei shed 1.3%, Hong Kong's Hang Seng gave up 1.2%, and China's
Shanghai Composite retreated 0.3%.
Meanwhile, the major European indexes are moderately higher at
midday, despite a fresh round of negative notes from ratings
agencies. Late Friday, Fitch lowered its outlook on AAA-rated
France to negative from stable, and also warned of possible
downgrades for Italy, Belgium, and Spain, amongst other euro-zone
countries. However, traders have shrugged off these concerns, with
optimism creeping in ahead of a planned conference call among
European Union (EU) finance ministers. At last check, the German
DAX and the French CAC 40 are both up 1%, and London's FTSE 100 has
tacked on 0.1%.
Currencies and Commodities
The greenback is trading fractionally lower this morning, with
the U.S. dollar index down 0.03%. Crude oil, meanwhile, has bounced
back from six-week lows, with the front-month contract last seen
0.5% higher at $94.24 per barrel. On the other hand, gold futures
are on the decline, with the malleable metal down 0.2% to trade at
$1,595.50 an ounce.
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.