The major market indexes gained ground on Friday, thanks to a
stronger-than-anticipated nonfarm payrolls report from Uncle Sam.
Ahead of the bell today, stocks are poised to continue where they
left off, with futures headed north ahead of high-level talks
between the U.S. and China. The countries' annual meeting will
feature discussions on currency rates, the trade deficit, human
rights, and economic and foreign policy. However, limiting the
bulls' momentum are fresh fiscal concerns out of the euro zone,
after Greek's foreign minister confessed that the country could
require additional bailout funds to meet its debt obligations.
Ahead of the bell, the Dow Jones Industrial Average (DJIA ) is set
to open with a 22-point lead, while the broader S&P 500 Index
(SPX ) is poised to tack on about 2.9 points at the open.
In equities news, Tyson Foods (TSN - 18.89) reported a net
profit of $159 million, or 42 cents per share, for the fiscal
second quarter -- marking little change from the year-ago quarter,
and falling a penny shy of analysts' estimates. Revenue for the
quarter docked at $8 billion, surpassing expectations for sales of
$7.54 billion. The company also said it expects chicken sales to be
profitable in both the fiscal third and fourth quarters, and
predicted fiscal-year sales to top $32 billion, surpassing the
Street's forecast for fiscal-year revenue of $31 billion. At last
check, TSN is set to open with a gain of 0.3%.
Meanwhile, Silver Wheaton (SLW - 35.82) said today that its
first-quarter profit surged 142% to $122.2 million, or 35 cents per
share, while revenue jumped 84% to a record $158.2 million. The
results were boosted by an 85% year-over-year increase in the
average realized silver price. Analysts, on average, were looking
for a profit of 38 cents per share on revenue of $193 million. In a
statement, President and CEO Randy Smallwood noted that SLW's
"corporate development team remains very busy pursuing further
partnerships... With in excess of US$560 million in cash, an
undrawn US$400 million revolving credit facility, and very robust
operating cash flows, Silver Wheaton is extremely well-positioned
to help mining companies achieve their growth goals." In pre-market
action, SLW has tacked on 2.5%.
Also on the earnings front, Rosetta Resources (ROSE - 41.10)
raked in a first-quarter profit of $11 million, or 21 cents per
diluted share, up from its year-ago earnings of $7.3 million, or 14
cents per diluted share. Revenue for the quarter arrived at $97.1
million, compared to $70.1 million in the first quarter of 2010.
The results were mixed, with analysts calling for a profit of 29
cents per share on revenue of $96 million. Looking ahead, ROSE
raised its production guidance to between 155 and 165 millions of
cubic feet equivalent per day, citing "continued strong performance
from Eagle Ford properties." At last check, ROSE is up roughly
Elsewhere, Hertz Global Holdings (HTZ - 16.85) offered to buy
Dollar Thrifty Automotive (DTG - 69.69) for about $2.08 billion, or
$72 per share in cash and stock, marking a 3.3% premium to DTG's
closing price of $69.69 on Friday. What's more, the bid represents
a premium of 24% to a buyout offer from Avis Budget Group (
) in 2010, which DTG shareholders ultimately rejected. Ahead of the
bell, HTZ is flirting with a 0.6% gain, while DTG is up nearly
Finally, Irish pharmaceutical firm Elan (ELN - 7.87) agreed to
sell its drug delivery business to Alkermes Inc. (ALKS - 14.47) for
$960 million in cash and stock. While ELN will lose 80 million
euros in core earnings, Chief Executive Kelly Martin said the firm
would recoup that within a year due to strong sales of Tysabri, its
multiple sclerosis drug. "We think this is a very
shareholder-friendly deal. We are going to have a lot of cash and
we are going to have a lot of growth on the top line," Martin told
Reuters. In pre-market trading, ELN is headed 3.4% higher, while
ALKS is up about 2.6%.
Today's earnings docket will feature reports from Clean Energy
Fuels Corp. (
), Activision Blizzard (
), Force Protection, Inc. (
), Quicksilver Resources (KWK), Grand Canyon Education (LOPE),
Mannkind Corp. (MNKD), PetMed Express (PETS), and Rackspace Hosting
(RAX), just to name a few. Keep your browser at
for more news as it breaks.
The economic agenda is pretty much bare today, but will heat up
tomorrow with the latest import and export data, as well as the
Commerce Department's wholesale inventories report for March.
Wednesday will feature the regularly scheduled crude inventories
data, as well as Uncle Sam's reports on the trade balance and
Treasury budget. On Thursday, the Street will digest the Labor
Department's weekly jobless figures and producer price data, as
well as the government's business inventories report for March and
retail sales data for April. Finally, Friday will feature April's
consumer price index (
) and core CPI, along with the Reuters/University of Michigan
consumer sentiment index.
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,053,468 call contracts traded on Friday, compared to
666,705 put contracts. The resultant single-session put/call ratio
docked at 0.63, while the 21-day moving average remained at
The spring 2011 issue of
magazine is now available here.
Stocks in Asia ended mixed today. Hong Kong snapped an eight-day
losing streak, with the Hang Seng rising 0.8% by the close.
Electric automaker BYD led the charge higher after unveiling plans
to list new shares on the mainland's Shenzhen stock exchange. The
Shanghai Composite also gained ground, managing a modest 0.3% rise
ahead of key inflation data due later this week. However, Japan's
Nikkei shed 0.7% after Prime Minister Naoto Kan prevailed upon
Chubu Electric Power to shut its nuclear power plant in order to
shore up the facility's defenses against potential future tsunamis.
Meanwhile, South Korea's Kospi dipped 0.4% as traders considered a
possible Friday rate hike by the Bank of Korea.
Elsewhere, European stocks are in the red at midday, weighed
down by concerns about the ongoing Greek debt crisis. Over the
weekend, Finance Minister George Papaconstantinou confessed that
the country may need additional bailout funds from its European
brethren in order to meet its debt obligations. At last check, the
German DAX was off 1%, the CAC 40 was 0.9% lower, and London's FTSE
100 dipped 0.5%.
Currencies and Commodities
The greenback is trading lower this morning, with the U.S.
dollar index down almost 0.4%. Elsewhere, after suffering their
steepest weekly dollar drop on record last week, crude futures have
bounced back above the century marker. At last check, the
June-dated contract has added 3.2% to hover around $100.31 per
barrel. Meanwhile, gold futures are trading nearly 1.1% higher to
linger around the $1,508-an-ounce marker, while silver has
rebounded 7.3% to trade near $37.85 an ounce.
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.