The Dow Jones Industrial Average (DJIA) broke above the 11,500
level on Tuesday, marking the first time the Dow has bested this
psychologically important region since Sept. 8, 2008. Caution,
however, is prevailing in premarket trading, as Wall Street holds
its ground ahead of this morning's reports on U.S. third-quarter
gross domestic product (
) and November's existing home sales. In fact, futures on the DJIA
and the S&P 500 Index (SPX) are trading flat compared to fair
value. Economists are expecting GDP to be revised higher to an
annualized growth rate of 2.8% from the prior 2.5% estimate.
Technically, all three of the major U.S. indexes, the DJIA, SPX,
and the Nasdaq Composite (COMP) tagged fresh two-year highs on
Tuesday. Keep a close eye on the 11,500 and the 1,250 areas for the
Dow and the SPX, respectively, as these former areas of resistance
could now provide short-term support. Additional support should
arise at the 11,450 and 1,245 regions. Look for the DJIA to
struggle near 11,600 if today's economic data comes in better than
expected, while the 1,275 area could be the next hurdle for the
In equity news, Navistar International Corp., (
) reported that its fourth-quarter net income fell 55% to $39
million, or 54 cents per share, from a profit of $86 million, or
$1.19 per share, last year. Revenue rose to $3.37 billion from
$3.29 billion. Analysts were looking for a profit of 60 cents per
share on $3.21 billion in revenue. The current results include
charges related to the company's new four-year labor deal with the
United Auto Workers. Navistar said that the deal give it a
"competitive cost structure across its production platforms," the
Also, Microsoft Corp., (
) will reportedly unveil a version of Windows in January that will
be compatible with ARM Holdings plc (
) semiconductors, people familiar with Microsoft's plans told
. ARM chips consume less power than Intel Corp. (
) and Advanced Micro Devices Inc.'s (AMD) x86 design, and are more
commonly used in smartphones and tablet computers. The move appears
to be designed to give Microsoft a larger presence in the
fast-growing mobile market.
On the earnings front, American Greetings Corp. (AM), Walgreen
Company (WAG), Micron Technology Inc. (MU) and Bed, Beth &
Beyond Inc. (BBBY) are slated to release their quarterly reports.
Keep your browser at
for more news as it breaks.
The economic calendar includes a smattering of reports today,
including the latest estimate on third-quarter gross domestic
product, November's existing home sales, and the weekly report on
U.S. petroleum supplies. The Commerce Department will report on
personal income and spending, durable goods orders, and new home
sales for November tomorrow, while the market will be closed for
the Christmas holiday on Friday.
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,251,204 call contracts traded on Tuesday, compared to
665,482 put contracts. The resultant single-session put/call ratio
arrived at 0.53 while the 21-day moving average held at 0.53.
**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
Overseas trading has a bearish bias this morning, as only three
of the 10 foreign indexes that we track are in positive territory.
The cumulative average return on the collective stands at a loss of
0.10%. Asian stocks finished mostly lower, though Chinese stocks
finished higher. Refiners led the way higher on the Shanghai
Composite, after the National Development and Reform Commission
allowed them to raise fuel prices by about 4%. European markets,
meanwhile, are treading water near breakeven, as traders brace for
the latest update on U.S. third-quarter gross domestic product.
Currencies and Commodities
The U.S. dollar remained weak in overnight trading, with the
greenback edging lower versus both the yen and the euro. At last
check, the U.S. Dollar Index was off 0.37% at 80.42. Crude futures
have bounced in the wake of the falling dollar, rising 46 cents to
$90.28 per barrel. Finally, gold futures continue to hover close to
breakeven, rising $1.60 to $1,390.40 an ounce in London.
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.