Despite soaring more than 225 points on Wednesday, the Dow Jones
Industrial Average (
) 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 (
) 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 (
) 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
In earnings news, Suntech Power Holdings Ltd. (
) 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. (
) 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.
On the earnings front, Charming Shoppes Inc. (
) and The Cooper Companies Inc. (
) are scheduled to release their quarterly reports today. Keep your
for more news as it breaks.
Equity option activity on the Chicago Board Options Exchange (
) 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.
**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
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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
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.
Unusual Put and Call Activity:
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