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Several financial firms posted better-than-expected quarterly results
The Dow Jones Industrial Average (DJIA) is seeing red this morning, despite a fresh round of upbeat earnings from financial firms. Specifically, blue chip Goldman Sachs Group Inc (NYSE:GS) handily topped expectations, as did Citigroup Inc (NYSE:C) and Blackstone Group LP (NYSE:BX). Dow component UnitedHealth Group Inc. (NYSE:UNH) is sharply higher in electronic trading, as well, following a standout report.
However, traders remain jittery ahead of the latest housing data, and amid a swoon in European equities. While European Central Bank (ECB) President Mario Draghi said yesterday he is not yet ready to "contemplate" a default by the Greek government, at least one ratings agency thinks the risk of such an event has increased.
And now, on to the numbers...
Futures on the Dow Jones Industrial Average (DJIA) are nearly 58 points below fair value.
Market Statistics
The Chicago Board Options Exchange (CBOE) saw 1.1 million call contracts traded on Wednesday, compared to 631,818 put contracts. The resultant single-session equity put/call ratio slid to 0.59, while the 21-day moving average edged down to 0.64.
Currencies and Commodities
- The U.S. dollar index is off 0.4% at 97.93.
- Crude oil has dropped 1.3% to trade at $56.95 per barrel, giving back some of yesterday's gains.
- Gold has added 0.6% at $1,207.90 per ounce.
Earnings and Economic Data
Housing starts, weekly jobless claims, and the Philadelphia Fed manufacturing survey will be reported today. American Express (AXP), Mattel (MAT), Philip Morris (PM), Schlumberger (SLB), and Sherwin-Williams (SHW) will each take their turns in the earnings limelight. Meanwhile, Etsy (NASDAQ:ETSY) is slated to go public. To see what else is on this week's agenda, click here.
Overseas Trading
Asian benchmarks followed the lead of U.S. stocks, rallying on upbeat earnings and strength in commodities. Also helping to lift investor sentiment were reports that Chinese officials may decide to ease regulations surrounding the Hong Kong-Shanghai Stock Connect. Specifically, China's Shanghai Composite soared 2.7% to a new seven-year peak, while Hong Kong's Hang Seng and Japan's Nikkei added 0.4% and 0.1%, respectively. In addition, South Korea's Kospi advanced 0.9% for its fifth straight win -- and a new three-year high.
Stocks in Europe are mostly lower, as traders mull a hot-and-cold round of quarterly reports from major companies, and a Greek credit downgrade from Standard & Poor's. At last check, London's FTSE 100 has given back 0.3%, the French CAC 40 has slipped 0.4%, and Germany's DAX has retreated 1.5%.
Unusual Put and Call Activity:
For an explanation of how to use this information, check out our Education Center topics on Option Volume and Open Interest Configurations.