Traders are returning from the long weekend in a good mood, with futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) pointed higher ahead of the bell. Earnings should dominate the majority of chatter this week, with roughly 25% of S&P 500 Index (SPX) companies reporting. Among blue chips, Johnson & Johnson (NYSE:JNJ), Verizon Communications Inc. (NYSE:VZ), and Travelers Companies Inc (NYSE:TRV) all unveiled their quarterly results this morning.
Elsewhere, "The S&P 500 is still pressing toward that 1,850 area, but can't seem to push through there," said Schaeffer's Senior Trading Analyst Bryan Sapp. "Meanwhile, the 105 level on the iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSEARCA:TLT) I mentioned last Thursday, gave way to the upside on Friday. This could be a potential warning sign for equities."
Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are more than 78 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,979,449 call contracts traded on Friday, compared to 1,049,060 put contracts. The resultant single-session put/call ratio fell to 0.53, while the 21-day moving average stayed at 0.52.
From the Trading Floor
"The new National Association of Active Investment Managers (NAAIM) sentiment number that surfaced Thursday afternoon showed another increase in fund manager exposure," continued Sapp. "This reading is only slightly below record levels, and is a sign that optimism in markets could be a bit high."
Currencies and Commodities
Earnings and Economic Data
Today's slate is void of any noteworthy economic reports. Stepping into the earnings confessional are International Business Machines (IBM), JNJ, TRV, VZ, Advanced Micro Devices (AMD), Cree (CREE), Delta Air Lines (DAL), Forest Laboratories (FRX), Halliburton (HAL), PetMed Express (PETS), SAP AG (SAP), TD Ameritrade (AMTD), and Texas Instruments (TXN).
The Case for Big Moves in IWM and QQQ
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