The Street's at a bit of a standstill this morning, as traders
opt to sit on the sidelines ahead of several key economic reports
due out later this week. Specifically, the Greek parliament is
expected to vote Wednesday on 78 billion euros (roughly $111.4
billion) in proposed austerity and privatization measures, followed
by a vote on implementation measures on Thursday. Meanwhile, on
Friday, the highly anticipated ISM index will shed light on whether
the recent bout of soft data is simply temporary weakness or
indicative of a greater downturn in the economic recovery. With the
stakes high ahead of these events, futures on the Dow Jones
Industrial Average (DJIA ) are trading just 9.4 points higher,
while S&P 500 Index (SPX ) futures are fractionally lower.
Nike Inc. (NKE - 81.62) last night reported a fiscal
fourth-quarter profit of $594 million, or $1.24 per share, compared
to a profit of $522 million, or $1.06 per share, a year earlier.
Revenue, meanwhile, jumped 14% to $5.77 billion. Analysts, on
average, were expecting a slimmer profit of $1.16 per share on
sales of $5.53 billion. The athletic apparel issue attributed the
stronger-than-expected figures to robust sales in North America,
China, and emerging markets. Ahead of the open, NKE has added
nearly 3.9%.
Standard Microsystems (SMSC - 24.01) said it earned $6.2
million, or 26 cents per share, in its fiscal first quarter, up
significantly from its year-ago earnings of $0.6 million, or 3
cents per share. Excluding items, the company earned 47 cents per
share, handily topping Wall Street's expectations for an adjusted
per-share profit of 29 cents. Revenue for the quarter came in at
$103.5 million, exceeding the Street's consensus forecast for sales
of $101.3 million. Meanwhile, SMSC projected a fiscal
second-quarter profit of 36 cents to 38 cents per share on revenue
of $112 million to $114 million. Analysts, on average, are looking
for current-quarter earnings of 38 cents per share on sales of
$107.7 million. SMSC is up 3% in pre-market trading.
Accenture plc (ACN - 57.79) will make its debut on the S&P
500 Index (SPX) after the close on Tuesday, July 5. The consulting
firm will replace Marshall & Ilsley Corp., which is set to be
acquired by Bank of Montreal. Ahead of the open, ACN has jumped
over 5% higher.
Wal-Mart Stores (WMT - 52.29) will be expanding its presence in
China, the company announced today. Specifically, the mega-retailer
said it signed an agreement with the Shanghai government to
establish a China e-commerce headquarters in the city, as part of
its online strategy to gain a greater share of the country's
growing retail market. In fact, as U.S. sales slow, WMT is
expanding its presence in up-and-coming markets, such as China,
Mexico, and Brazil. "The scale of online sales in China is
expanding rapidly and is projected to match U.S. online sales in
the next few years," explained Wan Ling Martello, Wal-Mart's
Executive Vice President of Global e-Commerce.
Earnings Preview
Today's earnings docket will feature reports from Omnova
Solutions (
OMN
), Progress Software (
PRGS
), RF Monolithics (
RFMI
), Sealy Corp. (
ZZ
), Shaw Group (
SHAW
), and Synnex Corp. (SNX). Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
The S&P/Case-Shiller home price index for April hits the
Street today, accompanied by the Conference Board's consumer
confidence index and the Richmond Fed manufacturing index for June.
Wednesday features the regularly scheduled report on domestic
petroleum inventories, along with a double dose of housing data:
May's pending home sales and the weekly MBA mortgage applications
index. Weekly jobless claims are on Thursday's docket, and traders
will also eye the Chicago purchasing managers index (PMI) for June.
The week wraps up Friday with the ISM manufacturing index, the
final Reuters/University of Michigan consumer sentiment index for
June, May's construction spending report, and auto and truck sales
for June.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 825,571 call contracts traded on Monday, compared to
517,749 put contracts. The resultant single-session put/call ratio
docked at 0.76, while the 21-day moving average was perched at
0.76.
The spring 2011 issue of
SENTIMENT
magazine is now available here.
Overseas Trading
Stocks in Asia ended mostly higher today, after French President
Nicolas Sarkozy offered his support for a plan to extend the
maturity of short-term Greek bonds. In fact, Shanghai-listed
securities eked out their sixth consecutive day of gains, while
equities in Tokyo approached a three-week peak. Meanwhile, gains
were relatively muted in Hong Kong -- where China Construction Bank
was hit hard by concerns over a possible stake sale by Bank of
America (BAC) -- and stocks in Seoul settled modestly lower on
selling by foreign investors. By the close, Japan's Nikkei added
0.7%, Hong Kong's Hang Seng tacked on 0.09%, China's Shanghai
Composite rose 0.04%, and South Korea's Kospi shed 0.4%.
Markets in Europe are wobbling around the breakeven line today,
as traders seem unwilling to price in too much Greece-related
optimism ahead of key parliamentary votes on Wednesday and
Thursday. Investors are also considering comments from European
Central Bank (ECB) President Jean-Claude Trichet, who said
policymakers are in "strong vigilance mode" when it comes to
inflation -- hinting at a forthcoming rate hike at the group's July
meeting. On the earnings front, profit warnings from telecom
company Cable & Wireless Worldwide and GPS giant TomTom are
also keeping sentiment under pressure. At last check, the German
DAX is down 0.2%, while the French CAC 40 and London's FTSE 100
have each added 0.4%.
Currencies and Commodities
Black gold has edged higher this morning, rebounding from
Monday's lows. Crude has been hit hard during the past few weeks as
a result of mounting anxieties over supply and demand, as well as
increasing signs of stalled economic growth. Ahead of the open, the
August-dated contract was up 0.4 point, or 0.4%. Meanwhile, the
greenback is standing pat this morning, hovering right around
breakeven as traders show hesitation to invest in
any
currency ahead of this week's vote from the Greek parliament.
Finally, gold has enjoyed a nice boost as a result of a struggling
dollar, with the precious metal up 6.3 points, or 0.4%, in
pre-market activity.
Unusual Put and Call Activity:
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topics on
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