The Dow Jones Industrial Average (DJIA) limped over the finish
line on Tuesday to log its fourth consecutive win in a row.
Granted, the DJIA gained only 12 points, but it's the thought that
counts. The blue-chip barometer is holding above support near
10,500, but is being held in check by resistance near 10,600, which
is home to the Dow's June 21 peak. Meanwhile, the S&P 500 Index
(SPX) is battling resistance at 1,115-1,120, with the index
finishing perched on its 200-day moving average on Tuesday.
Earnings continue to be a major driver on Wall Street, but economic
data may take center stage today, with the latest Beige Book from
the Federal Reserve. Anxiety is thick on the Street ahead of the
Fed's latest assessment of U.S. economic growth, with futures on
the DJIA and SPX trading seven points and 0.41 point above fair
value, respectively. Finally, the CBOE Market Volatility Index
(VIX) rebounded slightly on Tuesday, but met with resistance at its
200-day moving average. A rejection and extended run lower in the
VIX could bode well for market bulls.
In earnings news, Dow component Boeing Co. (
BA
) said that its second-quarter profit fell 21% to $787 million, or
$1.06 per share, as revenue dropped 9% to $15.57 billion. Analysts
were looking for earnings of $1.04 per share on sales of $16.4
billion. The company also reaffirmed its full-year guidance of
$3.50 to $3.80 per share, which remains below Wall Street's view
for earnings of $3.88 per share.
Elsewhere, Las Vegas Sands Corp. (
LVS
) said that it lost $4.7 million, or a penny per share, in the most
recent quarter. Revenue jumped 50.6% to $1.59 billion. On an
adjusted basis, the company earned $129 million, or 17 cents per
share. Analysts were expecting a profit of 9 cents per share.
Finally, Eastman Kodak Co. (
EK
) reported that its second-quarter loss from continuing operations
narrowed to $167 million, or 62 cents per share. Excluding one-time
items, the company said it lost 51 cents per share. Wall Street was
looking for a loss of 28 cents per share. Looking ahead, Kodak said
that it expects a loss from continuing operations in the range of
$50 million to $150 million.
Earnings Preview
On the earnings front, ArcelorMittal (
MT
), Coca-Cola Enterprises Inc. (
CCE
), Comcast Corp. (
CMCSA
), ConocoPhillips (
COP
), Constellation Energy Group Inc. (
CEG
), International Paper Company (
IP
), M/I Homes Inc. (
MHO
), Martha Stewart Living Omnimedia Inc. (
MSO
), P.F. Chang's China Bistro (
PFCB
), Sprint Nextel Corp. (
S
), Akamai Technologies Inc. (
AKAM
), Cincinnati Financial Corp. (
CINF
), Cliffs Natural Resources Inc. (
CLF
), Goldcorp Inc. (
GG
), Green Mountain Coffee Roasters Inc. (
GMCR
), NetLogic Microsystems Inc. (
NETL
), Skechers USA Inc. (
SKX
), and Sturm, Ruger & Co. (
RGR
) are scheduled to release their quarterly earnings report today.
Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
The weekly report on U.S. petroleum supplies and the Fed's Beige
Book will hit the Street today, while tomorrow sports the weekly
report on initial jobless claims. On Friday, we'll get the latest
numbers on second-quarter gross domestic product, along with the
Chicago Purchasing Managers' Index for July, and a final look at
July consumer confidence as measured by Reuters and the University
of Michigan.
Market Statistics
Equity option activity on the Chicago Board Options Exchange (
CBOE
) saw 1,332,293 call contracts traded on Tuesday, compared to
726,418 put contracts. The resultant single-session put/call ratio
arrived at 0.55, while the 21-day moving average slipped to
0.61.
**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.**
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Overseas Trading
Overseas trading is mixed, with six of the 10 foreign indexes
that we track in positive territory. The cumulative average return
on the collective stands at a gain of 0.43%. Regional indexes in
Asia headed higher on Wednesday, with Japanese stocks soaring on
the heels of solid corporate earnings from Canon and an improving
outlook for exporters. Meanwhile, Chinese stocks rallied after the
central bank said that there was little risk of a "double-dip"
recession. Across the pond in Europe, stocks have pulled back,
potentially stopping the region's winning streak at six sessions in
a row, as regional economic concerns reclaimed the limelight.
Currencies and Commodities
The U.S. Dollar Index continues to bounce along support at the
82 level this week, though the index is being squeezed into this
support level by resistance at its declining 10-day and 20-day
moving averages. In pre-market activity, the index is off
fractionally, shedding 0.05% to 82.15. The minor decline in the
dollar has done little to bolster commodities, as the front-month
crude contract is down 10 cents at $77.40. Crude futures appear to
be in danger of reversing course once again, after tangling with
resistance near $79-$80 per barrel. Finally, gold futures have
risen $4 to trade at $1,165.80 an ounce in London. So far this
week, gold has plunged more than 8% to trade at a multi-month
low.
Unusual Put and Call Activity:
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