Opening View

Bulls Bounce Back; Dow Jones Industrial Average Looks North

European markets rebound amid a solid round of corporate earnings

by 2/5/2013 8:16:20 AM
Stocks quoted in this article:

Bulls are brushing off Monday's steep sell-off, with futures on the Dow Jones Industrial Average (DJI) pointed solidly higher ahead of the bell. Earnings will be in focus today, with Wall Street ready to digest the latest results from satellite radio concern Sirius XM Radio (NASDAQ:SIRI) and Dow darling Walt Disney (NYSE:DIS), among others. Additionally, "The S&P 500 Index (SPX) continues to flirt with the 1,500 level," noted Schaeffer's Senior Trading Analyst Bryan Sapp. "Below that is 1,475 as the next level of support. Meanwhile, Apple Inc. (NASDAQ:AAPL) is testing the $440 mark, where it bounced last week post-earnings."

And now, on to the numbers...

Dow Jones Industrial Average, S&P and Nasdaq futures

Futures on the Dow Jones Industrial Average are sitting nearly 94 points above fair value.

Market Statistics

Equity option activity on the Chicago Board Options Exchange (CBOE) saw 765,396 call contracts traded on Monday -- the fewest since Jan. 8 -- compared to 531,545 put contracts. The resultant single-session put/call ratio rose to 0.69, while the 21-day moving average stayed at 0.66.

NYSE and Nasdaq summary

Volatility indices

From the Trading Floor

Sapp continued, "One thing I found very interesting yesterday was the lack of CBOE Market Volatility Index (VIX) call buying. It's something we monitor very closely, and given the big VIX spike, you'd expect some people to be buying protection. However, that's not the case, as the total volume is only a fraction of what it has been all year. To me, that's a sign of near-term complacency."

Currencies and Commodities

  • The U.S. dollar index has pulled back this morning, with the currency down 0.08% to trade at $79.49.
  • Crude oil has resumed its upward momentum, with the front-month contract up 0.8% at $96.97 per barrel.
  • Gold futures are higher as well, with the commodity tacking on 0.3% in pre-market trading to linger near $1,681.40 an ounce.
Currencies and commodities

Earnings and Economic Data

The economic calendar is light today, aside from the Institute for Supply Management's (ISM) non-manufacturing index for January. Meanwhile, DIS, SIRI, Aflac (AFL), Arch Coal (ACI), Archer Daniels Midland (ADM), ARM Holdings (ARMH), Automatic Data Processing (ADP), BP plc (BP), Cardinal Health (CAH), CMG, CME Group (CME), Diamond Offshore Drilling (DO), EXPE, Estee Lauder (EL), Genworth Financial (GNW), Hanesbrands (HBI), Kellogg (K), PNRA, Shutterfly (SFLY), Take-Two Interactive Software (TTWO), Toyota Motor (TM), UBS AG (UBS), and Zynga (ZNGA) will unveil their respective earnings announcements.

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