Will Today's Domestic Data Woo the Bulls?


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Although yesterday's bearish start to the day ended in a minor rally, Wall Street is taking yet another cautious stance ahead of this morning's bell. Some potential drivers traders will be keeping an eye on include:

  • auto sales ,
  • factory orders , and
  • the minutes from the Federal Open Market Committee's (FOMC) latest meeting.
Among equities in focus, inventory issues prompted Cavium (CAVM ) to slash its quarterly outlook , while The Pep Boys-Manny, Moe & Jack's (PBY ) fourth-quarter results didn't quite match analysts' expectations.

In pre-market action, traders appear to be taking their cues from Europe, as all three major market indexes are looking at modest losses.

And now, on to the numbers...

Dow, S&P and Nasdaq futures

Currencies and Commodities

  • The greenback is down 0.03% ahead of the bell, with the U.S. dollar index at $78.80.
  • Crude oil has pulled back this morning, with the front-month contract 0.7% lower at $104.50 per barrel.
  • Elsewhere, gold futures are trading just below breakeven, with the malleable metal last seen at $1,679.30 an ounce.
  • Currencies and commodities

    Cavium (CAVM - 30.57) last night lowered its first-quarter earnings outlook by 6 cents to 7 cents per share, with revenue now expected to decline by 6% to 7% sequentially. Back in February, CAVM had projected an adjusted profit of 6 cents to 7 cents per share, with revenue expected to remain "flattish" with the previous quarter's $56.3 million. "Sales in the service provider market were affected by continued inventory de-stocking, while sales into the broadband and consumer business were affected by delays in deployment of certain programs," according to a company statement. However, sales are expected to rebound in the second quarter. Analysts, on average, were looking for CAVM to report a first-quarter profit of 7 cents per share on $56.5 million in revenue. CAVM is down 1.9% ahead of the bell.

    Meanwhile, The Pep Boys-Manny, Moe & Jack (PBY - 14.93) swallowed a fourth-quarter loss of $4.4 million, or 8 cents per share, compared to last year's profit of $8.4 million, or 16 cents per share, as a $900,000 M&A charge weighed on PBY's bottom line. The automotive servicer saw same-store sales increase 0.8%, while total revenue edged up 5.9% to $505.3 million. The results fell short of analysts' expectations for a per-share profit of 12 cents on $510 million in sales.

    Earnings and Economic Data

    Today's docket features auto sales data , factory orders , and the minutes from the latest meeting of the FOMC . Comverse Technology ( CMVT ), International Speedway ( ISCA ) and Mitcham Industries ( MIND ) are expected to report earnings. Keep your browser at SchaeffersResearch.com for more news as it breaks.

    Overseas Trading

    The major Asian benchmarks ended mostly higher today, as traders took their cues from Wall Street's positive start to the week. An upbeat manufacturing report from the U.S. lured some buyers from the sidelines, and a softer dollar proved to be a bullish driver for resource issues. However, a stronger yen kept Japanese exporters under pressure. By the close, Hong Kong's Hang Seng gained 1.3%, South Korea's Kospi advanced roughly 1%, and Japan's Nikkei retreated 0.6%. Markets in Shanghai are closed for holiday.

    European equities are steeped in red ink at midday, led by weakness in banking stocks. Debt-related jitters remain at the forefront, after Monday's downbeat euro-zone factory data was followed up by a rise in the Spanish unemployment rate. As a result, both Spain and Italy have seen their 10-year yields creep higher today. At last check, London's FTSE 100 has backpedaled 0.4%, while the German DAX is down 0.3%. The French CAC 40 is 0.6% lower.

    Overseas markets

    Market Statistics

    Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,123,116 call contracts traded on Monday, compared to 596,686 put contracts. The resultant single-session put/call ratio arrived at 0.53, while the 21-day moving average was 0.60.

    NYSE and Nasdaq summary

    Volatility indices

    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.

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This article appears in: Investing , Options
More Headlines for: CBOE , CMVT , ISCA , MIND

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