It was a solid start to November, with the Dow Jones Industrial Average (DJI) putting up triple-digit points on the big board yesterday. However, Thursday's optimism has been tempered, as Wall Street prepares to dissect the final U.S. payrolls report before next week's Presidential election. At last check, futures on the blue-chip barometer were churning just south of breakeven.
Elsewhere, "The American Association of Individual Investors (AAII) and the National Association of Active Investment Managers (NAAIM) sentiment reports came out yesterday, and both showed a noticeable uptick in bullish sentiment," said Schaeffer's Senior Trading Analyst Bryan Sapp. "That's a bit worrisome, given that every recent bounce has sold off sharply. We'll be digesting the jobs number today, so maybe some good data can lead a market bounce that's backed by fundamentals."
Futures on the Dow Jones Industrial Average are sitting nearly five points below fair value.
Equity option activity on the Chicago Board Options Exchange (CBOE) saw 975,938 call contracts traded on Thursday, compared to 586,027 put contracts. The resultant single-session put/call ratio fell to 0.60, while the 21-day moving average dropped to 0.70.
From the Trading Floor
"I'm watching the 3,000 level on the Nasdaq Composite (COMP)," continued Sapp. "It retook this level yesterday, despite Apple (NASDAQ:AAPL) not participating in the rally. Also, I don't like the fact that small caps underperformed on Thursday. We need to see leadership by them, and it just hasn't been there lately."
Currencies and Commodities
Earnings and Economic Data
The week ends with the headline-grabbing nonfarm payrolls number and the Department of Labor's latest unemployment data, and information on factory orders. Chevron (CVX), Alcatel-Lucent (ALU), Alpha Natural Resources (ANR), Dendreon (DNDN), Penske Automotive Group (PAG), and Cooper Tire & Rubber (CTB) will wrap up the week's slate of quarterly earnings.
The Case for Big Moves in IWM and QQQ
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