Futures on the Dow Jones Industrial Average (DJI) are solidly higher ahead of the bell, with the blue-chip barometer on pace to break its two-session losing streak. Optimistic investors are at the ready to digest today's glut of earnings and economic data. Elsewhere, "The euro is back near the key 130 area," said Schaeffer's Equities Analyst Bryan Sapp. "This served as support early in the year, and could now act as resistance. A failure to break and hold above 130 could usually be viewed as bearish for equities (the correlation for some time now has been weak dollar/strong equities). The correlation has decoupled a bit this week, but it's too early to assume that will continue. Until further notice, a strong euro means strong equities."
Futures on the Dow Jones Industrial Average are nearly 73 points north of fair value.
Equity option activity on the Chicago Board Options Exchange (CBOE) saw 872,969 call contracts traded on Wednesday, compared to 615,655 put contracts. The resultant single-session put/call ratio fell to 0.71, while the 21-day moving average rose to 0.68.
From the Trading Floor
"The new Investors Intelligence report came out today, and once again the bulls-minus-bears line dropped, and is at its lowest level since July 31," continued Sapp. "Until sentiment can shift dramatically to the bullish side, the major concerns pundits currently have toward the market will be overblown. Given every drop in the market creates more bearish sentiment, you would have to assume that much of the potential bad news is already priced in."
Currencies and Commodities
Earnings and Economic Data
Reports on weekly jobless claims, durable goods orders, and pending home sales hit the Street today. Among the companies stepping into the earnings spotlight are Procter & Gamble (PG), Apple (AAPL), Amazon.com (AMZN), Acme Packet (APKT), Aetna (AET), Alaska Air Group (ALK), Altria Group (MO), AutoNation (AN), Biogen Idec (BIIB), Cabot Oil & Gas (COG), Clearwire (CLWR), CME Group (CME), Coca-Cola Enterprises (CCE), Coinstar (CSTR), Colgate-Palmolive (CL), ConocoPhillips (COP), CONSOL Energy (CNX), Credit Suisse (CS), Deckers Outdoor (DECK), Dow Chemical (DOW), Dunkin' Brands (DNKN), Expedia (EXPE), Franklin Resources (BEN), Hercules Offshore (HERO), Hershey Company (HSY), International Paper (IP), JetBlue Airways (JBLU), KLA-Tencor (KLAC), Las Vegas Sands (LVS), Meritage Homes (MTH), Mylan (MYL), National Oilwell Varco (NOV), New York Times (NYT), PACCAR (PCAR), Patterson-UTI Energy (PTEN), PulteGroup (PHM), Potash Corp. of Saskatchewan (POT), QLogic (QLGC), Sherwin-Williams (SHW), Sprint Nextel (S), Starwood Hotels & Resorts Worldwide (HOT), Under Armour (UA), and Verisign (VRSN).
The Case for Big Moves in IWM and QQQ
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