Opening View: Will the DJIA Bulls Regain Control? Only Jobs Will Tell

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Despite soaring more than 225 points on Wednesday, the Dow Jones Industrial Average ( DJIA ) was unable to find purchase above growing resistance at the 10,250 level. The region is home to the Dow's 200-day moving average, and the blue-chip barometer has closed only one session above this area since May 19. Meanwhile, the S&P 500 Index ( SPX ) is waging a similar war with the 1,100 level, with the index's own 200-day trendline perched just overhead in the 1,105 area. Traders appear wary of pushing too hard ahead of jobs data later this morning, with the DJIA and the SPX trading a mere 8 points and 3 points above fair value, respectively. Finally, the CBOE Market Volatility Index ( VIX ) plunged more than 15% amid Wednesday's rally, with the index holding near support at the round-number 30 level. With the VIX hovering near support, the DJIA and SPX perched just below key short-term resistance, and key economic data slated for release later this morning, we could be in for an interesting trading session.

In earnings news, Suntech Power Holdings Ltd. ( STP ) reported a first-quarter net profit of $20.7 million, or 11 cents per share. Revenue rose to $588 million, from $316 million. Analysts were looking for earnings of 15 cents per share on revenue of $562 million. Suntech also increased its 2010 annual shipment target to 1.3 gigawatts from 1.25 gigawatts.

Finally, Joy Global Inc. ( JOYG ) reported fiscal second-quarter net income of $120.4 million, or $1.15 per share, as net sales fell to $896.2 million. Wall Street was expecting a profit of 77 cents per share on $755.2 million in sales. For 2010, Joy Global now expects to earn $3.85 to $4 per share, up from its previous estimate of $2.85 to $3.05. Revenue is seen rising to $3.3 billion to $3.4 billion, from previous expectations for $2.8 billion to $3 billion. Analysts were looking for $3.12 per share on $3.07 billion in sales for fiscal 2010.

Earnings Preview

On the earnings front, Charming Shoppes Inc. ( CHRS ) and The Cooper Companies Inc. ( COO ) are scheduled to release their quarterly reports today. Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

Market Statistics

Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,055,359 call contracts traded on Wednesday, compared to 634,767 put contracts. The resultant single-session put/call ratio arrived at 0.60, while the 21-day moving average held at 0.67.

Volatility indices

NYSE and Nasdaq summary

**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.**

Dow, S&P and Nasdaq futures

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Overseas Trading

Overseas trading is rebounding from a string of losses this morning, as nine of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a gain of 1.71%. In Asia, stocks climbed for the first time in three days as U.S. housing data fueled optimism about the world's largest economy, while the yen was pressured by expectations that Japan's new political leaders will favor a weaker currency. European shares rose to a two-week high as investors' confidence in the global economy improved after strong U.S. data, with banks and beaten-down energy stocks rallying. Investor sentiment was also lifted after the Markit Eurozone Services Purchasing Managers' Index showed the services sector was expanding in May and the Final Services Employment Index showed its first jobs growth since June 2008. Overseas market information comes to you courtesy of Schaeffer's Daily Bulletin .

Overseas markets

Currencies and Commodities

The U.S. dollar and the euro gained ground on the yen in Asian trading, with the euro rebounding from multi-year lows versus the dollar. The effect has been balancing on the dollar overall, with the yen falling and the euro rising, resulting in the U.S. Dollar Index trading flat at 86.72 in pre-market trading. Elsewhere, crude futures are gaining ground ahead of today's holiday-delayed U.S. inventory reports. In electronic trading, the most active contract was up 49 cents at $73.35 per barrel. Finally, gold continues to pull back from resistance in the $1,230 area, slipping $3.50 to $1,219.10 an ounce in London.

Currencies and commodities

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 .

Unusual options activity - puts

Unusual options activity - calls

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