Wall Street Stays Hopeful Ahead of Durable Goods

By
A A A

U.S. stocks are set to bounce after yesterday's bout of profit taking, with all three major market indexes pointed north of breakeven. With no Bernanke-related drivers on today's docket, Wall Street is turning an optimistic eye toward this morning's durable goods report. Economists are expecting a rise in orders, following January's contraction. Investors also have quarterly earnings reports -- from the likes of PVH (PVH ), Synnex (SNX ), and Family Dollar (FDO ) -- to chew on. Against this light backdrop, futures on the Dow Jones Industrial Average (DJIA) are trading 29 points higher, while the broader S&P 500 Index (SPX) is up 2 points.

Dow, S&P and Nasdaq futures

In earnings news, PVH Corp. (PVH - 89.81) banked a fourth-quarter profit of $81.2 million, or $1.11 per share, a 56% year-over-year rise from $52.2 million, or 72 cents per share. On an adjusted basis, PVH raked in $1.18 per share. With sales from its Calvin Klein and Tommy Hilfiger brands surging 12% and 16%, respectively, total revenue improved 9.6% to arrive at $1.53 billion. The results beat analysts' expectations for earnings of $1.10 per share on $1.50 billion in sales. For the current quarter, PVH is calling for earnings of $1.23 to $1.25 per share on 1% to 2% revenue growth. Wall Street, meanwhile, has a more optimistic outlook for the apparel issue, projecting a per-share profit of $1.32 on a 4% jump in sales. PVH is trading 0.2% lower ahead of the bell.


Synnex Corporation (SNX - 43.64) unveiled a fiscal first-quarter profit of $38.2 million, or $1.02 per share, up 28.6% from $29.7 million, or 80 cents per share, in the year ago period. Meanwhile, revenue edged down 1.6% to $2.46 billion. The results were mixed, as analysts were expecting earnings of 92 cents per share on sales of $2.55 billion. Looking ahead, the company is predicting a second-quarter profit of 87 cents to 91 cents per share on revenue between $2.45 billion and $2.55 billion. Wall Street, on the other hand, is forecasting earnings of 95 cents per share on sales of $2.60 billion. SNX is set to drop 8.2% right out of the gate.

Finally, Family Dollar Stores, Inc. (FDO - 58.24) this morning said its fiscal second-quarter profit rose 11% to $136.4 million, or $1.15 per share, from last year's profit of $123.2 million, or 98 cents per share. Revenue edged up 8.6% to $2.46 billion, as same-store sales improved 4.5%. The bottom-line results came in above analysts' expectations for earnings of $1.13 per share, while revenue fell in line with the Street's forecast. Going forward, FDO is predicting its fiscal third-quarter profit to land between $1.01 and $1.11 per share, while analysts are calling for a per-share profit of $1.06. FDO has pulled back 0.4% in pre-market trading.

Earnings Preview

Today's earnings docket will also feature reports from AuRico Gold ( AUQ ), Commercial Metals ( CMC ), Lindsay Corp ( LNN ), Progress Software ( PRGS ), Mosaic ( MOS ), Paychex (PAYX), Red Hat (RHT), Teavana (TEA), UniFirst (UNF), and Resources Connect (RECN). Keep your browser at SchaeffersResearch.com for more news as it breaks.

Economic Calendar

Durable goods data and the regularly scheduled crude inventories report will hit the Street today, while Thursday's round-up will include weekly jobless claims and the final report on fourth-quarter GDP. The week wraps up on Friday with personal income and spending data, the Chicago purchasing managers index (PMI), and the final March reading of the Thomson Reuters/University of Michigan consumer sentiment index.

Market Statistics

Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,222,938 call contracts traded on Tuesday, compared to 812,612 put contracts. The resultant single-session put/call ratio arrived at 0.57, while the 21-day moving average was 0.62.

NYSE and Nasdaq summary

Volatility indices

Overseas Trading

Stocks in Asia ended lower today, as traders priced in concerns over a weak quarter of corporate earnings in China. Just one session after government data from Beijing showed a disappointing decline in industrial earnings, Jiangxi Copper confessed to a weaker-than-forecast net profit for 2011. As a result, mining issues were among the day's notable laggards. By the close, China's Shanghai Composite lost 2.7%, Hong Kong's Hang Seng fell 0.8%, Japan's Nikkei lost 0.7%, and South Korea's Kospi shed 0.4%.

Meanwhile, European equities are shifting from minor gains to modest losses at midday. Defensive names -- such as pharmaceuticals -- are among the notable advancing issues, as buyers have taken a relatively cautious approach on the heels of Tuesday's mixed U.S. economic data. Among individual names, French energy giant Total SA has taken a dive in Paris, after the company warned it may take months to contain a gas leak at its damaged North Sea platform. At last check, the French CAC 40 has edged up 0.03%, the German DAX is down 0.1%, and London's FTSE 100 is 0.08% lower.

Overseas markets

Currencies and Commodities

The U.S. dollar index has pulled back this morning, with the greenback down 0.02% at $79.03. Ahead of today's latest inventories update, crude oil is 0.9% lower at $106.35 per barrel. Gold futures are pointed south, as well, with the malleable metal on pace to fall 0.5% to $1,679.80 an ounce.

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

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 here for free daily delivery, straight to your inbox, before the opening bell.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: AUQ , CMC , LNN , MOS , PRGS

Schaeffer's Investment Research

Schaeffer's Investment Research
  • See all for Schaeffer's Investment Research
  • View Print Version

More from Schaeffer's Investment Research:

Related Videos

Stocks

Referenced

Most Active by Volume

85,117,424
  • $6.78 ▲ 11.88%
77,261,676
  • $17.53 ▲ 1.56%
61,066,548
  • $6.90 ▲ 2.99%
56,847,440
  • $112.65 ▲ 2.96%
52,788,366
  • $7.78 ▲ 1.83%
50,761,400
  • $25.14 ▲ 2.91%
47,781,237
  • $45.35 ▲ 10.18%
45,664,909
  • $7.17 ▲ 2.14%
As of 12/18/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com