U.S. stock futures are on the mend, after Monday's brutal start to the week. Taking a breather from the latest euro-zone debt drama, Wall Street has brought its focus back home, with a barrage of reports slated for release throughout today's session. Bulls have taken the lead following yesterday's better-than-expected domestic data, pulling both the Dow Jones Industrial Average (DJI) and the broader S&P 500 Index (SPX) modestly north of breakeven.
Market Statistics
Equity option activity on the Chicago Board Options Exchange (CBOE) saw 786,897 call contracts traded on Monday, compared to 611,020 put contracts. The resultant single-session put/call ratio arrived at 0.78, while the 21-day moving average was 0.73.
From the Trading Floor
Schaeffer's Equities Analyst Bryan Sapp pointed out a number of emerging technical levels on the SPX that have caught his eye, including "the 1,305 mark -- the site of a 25% retracement of the April highs and June lows -- and the psychologically significant round number 1,300 area -- also home to the SPX's 200-day moving average.
There were two good data points yesterday, including new home sales," noted Sapp. "However, the market responded terribly after a small pop on each number. Today, the S&P/Case-Shiller home price index will be released, as well as the latest consumer confidence report. I'll be curious to see how we react if there is more positive economic data."
Check out Schaeffer's Trader TV feed for the latest thoughts from the trading floor.
Currencies and Commodities
Declining enrollment at Apollo Group, Inc.'s (NASDAQ:APOL - 32.47) campuses pulled its fiscal third-quarter earnings down 37% to an adjusted profit of $1.20 per share. Revenue, meanwhile, fell 8.5% to $1.13 billion. However, the shares are 3.2% higher in pre-market trading, as the results beat analysts' expectations for adjusted earnings of 97 cents per share on $1.12 billion in sales. Additionally, the for-profit educator offered up a promising revision to its full-year outlook, now calling for revenue of $4.2 billion to $4.3 billion, within range of Wall Street's forecast for $4.28 billion in sales. Short sellers increased their bearish exposure by 20% during the past month, and short interest now accounts for 13.3% of the stock's float.
LDK Solar Co., Ltd (NYSE:LDK - 2.02) swung to a first-quarter loss of $185.2 million, or $1.46 per American depositary share (ADS), as oversupply and weak demand continue to weigh on the solar-panel sector. Net sales, meanwhile, sunk 74% to $200.1 million. The results fell far short of analysts' expectations for a loss of $1.14 per share on $225.5 million in sales. For the current quarter, LDK forecast sales in the $220 million to $270 million range, well below the Street's call for $370 million in sales. The stock is down 1% ahead of the bell, most likely pleasing short-term options players. LDK currently sports a Schaeffer's put/call open interest ratio (SOIR) of 2.22.
Coinstar (NASDAQ:CSTR - 65.39) said last night that its full-year earnings will come in lower than anticipated, citing impacts from its $100-million acquisition of NCR Corp.'s (NYSE:NCR) DVD business. The Redbox parent expects the strategic purchase to decrease its bottom line by 40 cents to 50 cents per share in fiscal 2012. CSTR had previously predicted full-year earnings of $4.40 to $4.80 per share from continuing operations. "While we expect to incur losses during the initial period, as we swap out the acquired kiosks for new Redbox kiosks, we expect the economics to improve and become accretive sometime in 2013," said Chief Financial Officer J. Scott Di Valerio in a statement.
Earnings and Economic Data
Today's economic calendar features the S&P/Case-Shiller home price index, the Richmond Fed's manufacturing index, and the Conference Board's latest consumer confidence report. H&R Block (HRB) will step up to the earnings plate.
Mid-Caps Nearing a Triple of March 2009 Lows