U.S. stock futures are falling in step with global markets this morning, with futures on all three major indexes seeing red. Heading into the session, the Dow Jones Industrial Average (DJI) will once again contend with the round-number 12,500 level.
Equity option activity on the Chicago Board Options Exchange (CBOE) saw 987,641 call contracts traded on Tuesday, compared to 662,979 put contracts. The resultant single-session put/call ratio arrived at 0.67, while the 21-day moving average was 0.79.
From the Trading Floor
In today's session, Schaeffer's Equities Analyst Bryan Sapp will be watching, "the 1,333 level on the SPX again -- which is double its March 2009 lows. Also, tech was really strong yesterday, so it will need to continue to lead the market higher."
Additionally, Sapp points out, "this is a huge week as far as fundamental indicators go. The ADP payroll, real GDP, and pending home sales are due out today; jobless claims and Chicago PMI on Thursday; and then the big jobs report and ISM manufacturing on Friday."
Currencies and Commodities
In equities news, Research In Motion Limited (RIMM - 11.23) last night announced it hired J.P. Morgan Securities and RBC Capital Markets to facilitate a "strategic review." RIMM also warned of an impending operating loss in the current quarter, with its fiscal first-quarter results slated for release after the close Thursday, June 28. That being said, the struggling BlackBerry maker implied that several cost-cutting measures are on the horizon, aimed at saving the company roughly $1 billion by the end of fiscal 2013. No fewer than 97% of analysts have smacked the stock with a "hold" or "sell" suggestion. RIMM is staring at a 10.3% drop right out of the gate.
In earnings news, DryShips (DRYS - 2.29) swung to a first-quarter loss of $47.5 million, or 12 cents per share, even as revenue improved 19% to $247.5 million. In a statement, the shipper attributed its quarterly deficit to "downtime and mobilization related to the commencement of new contracts" for its Ocean Rig subsidiary. Analysts, on average, were looking for a loss of 4 cents per share on $267.8 million in revenue. Short-term calls were in high demand on DRYS ahead of earnings, with the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.28 ranked in the 24th percentile of its annual range. DRYS is down 5.2% in pre-market trading.
Yingli Green Energy Hold. Co. Ltd. (YGE - 2.76) swallowed a first-quarter loss of $45 million, or 29 cents per American depositary share (ADS). Excluding items, earnings landed at 24 cents per share, while revenue slid 8.8% to $500 million. The results were mixed, with Wall Street anticipating a slimmer loss of 21 cents per share on $449 million in sales. Short interest depleted 15.5% in the last two reporting periods, but still accounts for a lofty 9.4% of the stock's float. YGE is 0.4% lower ahead of the bell.
Earnings and Economic Data
The National Association of Realtors' pending home sales index hits the Street on today. Companies slated to post earnings include Coldwater Creek (CWTR), Fresh Market (TFM), Lions Gate Entertainment (LGF), and TiVo (TIVO).
Mid-Caps Nearing a Triple of March 2009 Lows
Featured Partners: AOL DailyFinance
© 2013 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: firstname.lastname@example.org
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.