If it weren't for some positive tech earnings reports, traders
might have slept through Friday's session. However, the
stronger-than-expected reports from Oracle (
ORCL
) and Research In Motion Limited (
RIMM
) helped to push the major market indexes higher, lifting the Dow
Jones Industrial Average (DJIA) above the 10,600 level. The next
layer of resistance lies at the 10,700 level, while the 10,500 area
should provide some support in the event of a pullback. In trading
today, the housing market takes center stage, with the release of
the National Association of Home Builders' September housing market
index.
Lennar Corp. (
LEN
) announced that it saw a fiscal third-quarter profit of $30
million, or 16 cents a share, compared to a loss of $171.6 million,
or 97 cents a share, in the year-ago period. Revenue was up 14% to
$825 million. Analysts had expected, on average, a profit of 4
cents per share on revenue of $760.2 million. Revenue from home
sales increased 10% in the three months ending Aug. 31, said
Lennar, mostly due to a 9% increase in the number of home
deliveries.
Meanwhile, Verizon Communications (
VZ
) plans to name Lowell McAdam president and chief operating
officer, placing him as heir apparent to Chief Executive Ivan
Seidenberg, a person familiar with the situation told
The Wall Street Journal.
McAdam, 56, heads Verizon Wireless and his appointment highlights
the importance of that business to Verizon's future, the
Journal
reported. In the new post, McAdam would oversee Verizon's wireless
and wireline phone operations, its services business, and its
technology development.
Earnings Preview
On the earnings front, Discover Financial Services (
DFS
) is slated to release its quarterly earnings report today. Keep
your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
The National Association of Home Builders will release its
September housing market index this morning, while the Commerce
Department will release August data on housing starts and building
permits tomorrow morning. On Tuesday afternoon, the Federal Open
Market Committee will weigh in shortly after 2 p.m. with its
decision on interest rates. We'll get the usual weekly report on
U.S. petroleum supplies on Wednesday. The report on new jobless
claims will be available early on Thursday, while August existing
home sales and leading indicators will arrive after the open.
Rounding out the week, durable goods orders for August and new
homes sales for August are on tap on Friday.
Market Statistics
Equity option activity on the Chicago Board Options Exchange (
CBOE
) saw 1,519,394 call contracts traded on Friday, compared to
876,940 put contracts. The resultant single-session put/call ratio
arrived at 0.58, while the 21-day moving average slipped to
0.60.
**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
higher.**
Click here for the new summer issue of
SENTIMENT magazine
Overseas Trading
Overseas trading is relatively positive this morning, as seven
of the 10 indexes that we follow are in positive territory. The
cumulative average return on the group stands at a gain of 0.28%.
Trading in Asia finished lower, with Japan closed for a public
holiday Monday. Investors stayed on the sidelines amid soft U.S.
consumer sentiment and a re-emergence of concerns about euro-zone
fiscal health. Meanwhile, Seoul shares finished a tad higher on
light trading volume due to the Chuseok holiday this week. Turning
to Europe, stocks are higher after four days of losses as investors
remain optimistic ahead of Tuesday's Federal Reserve meeting.
Meanwhile, K+S is gaining on a media report of Chinese interest in
Canada's Potash Corp. (
POT
).
Currencies and Commodities
Gold futures are marching higher this morning as they approach
yet another record high this week. At last check, gold futures were
up $4 at $1,281.50 an ounce. Providing lift for the malleable metal
is fresh weakness in the U.S. dollar versus its foreign
counterparts. The U.S. dollar index has slipped 0.29% to trade at
81.16 heading into the open. Finally, crude futures are on the
rise, gaining 31 cents to trade at $75.23 per barrel.
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.