The Dow Jones Industrial Average (DJIA) may have been saved by a late-session buying spree on Wednesday, but market bears are poised to take the reins once again this morning. Pressured by poor revenue guidance from Cisco Systems Inc. ( CSCO ) and a stronger-than-expected jump in China's consumer price index, futures on the DJIA and the S&P 500 Index (SPX) are trading 57 points and 7.3 points below fair value, respectively. Should the Dow maintain this course into the open, the blue chip barometer could quickly test support at its 10-day moving average for a second consecutive session. The DJIA has closed only four sessions below this trendline since Aug. 31. As for the SPX, look for the index to hold support at the 1,205 level, which is home to its 10-day moving average.
In equity news, Viacom Inc. ( VIA ) posted an adjusted third-quarter profit of 75 cents per share, as revenue rose 5% on a year-over-year basis to $3.33 billion. Viacom said it plans to sell its Harmonix gaming unit, which is responsible for the Rock Band series of video games. Wall Street analysts were looking for a profit of 68 cents per share on revenue of $3.3 billion.
Elsewhere, Cisco Systems reported an adjusted first-quarter profit of 42 cents per share on revenue of $10.75 billion. Wall Street was looking for earnings of 40 cents per share, on revenue of $10.75 billion. Despite the inline results, CSCO said that it expects revenue to rise only 3% to 5% on a year-over-year basis for the current quarter, compared to the consensus estimate for revenue growth of 13%. As a result, CSCO has plunged roughly 15% in premarket trading.
Finally, Kohl's Corp. ( KSS ) reported that its third-quarter profit rose to $194 million, or 63 cents per share, from $193 million, or 63 cents per share, in the year-ago period. Analysts estimated a quarterly profit of 62 cents per share. Revenue increased to $4.22 billion from $4.05 billion last year.
On the earnings front, Tim Hortons Inc. ( THI ), NVIDIA Corp. ( NVDA ), SunPower Corp. (SPWRA) and The Walt Disney Company (DIS) will release their quarterly reports today. Keep your browser at SchaeffersResearch.com for more news as it breaks.
There are no major economic reports scheduled for today, while tomorrow rounds out the week with the University of Michigan's first reading on November consumer sentiment.
Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,628,409 call contracts traded on Wednesday, compared to 921,560 put contracts. The resultant single-session put/call ratio arrived at 0.57, while the 21-day moving average held at 0.58.
**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.**
Overseas trading has a bearish slant this morning, as only four of the 10 foreign indexes that we track are in positive territory. The cumulative average return on the collective stands at a loss of 0.36%. In Asia, Chinese economic data revealed that consumer price inflation rose at its fastest clip in two years, while industrial output growth came in weaker than expected. Meanwhile, European trading continues to be plagued by sovereign debt concerns, with losses in the financial sector outweighing well-received earnings results from Siemens and BT Group.
Currencies and Commodities
Trading among currencies and commodities is a bit on the unusual side this morning, as gold, crude oil, and the U.S. dollar are all rallying in tandem. Remember that gold and crude are dollar denominated, and, as such, typically trade inversely to the greenback. At last check, the U.S. Dollar Index was up 0.39% at 77.94, as the dollar looks to extend this week's gains. Meanwhile, crude futures are up 55 cents at $88.84 in electronic trading, while gold futures have added $14.40 to trade at $1,413.70 an ounce in London.
Unusual Put and Call Activity:
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