After its
first foray north of the 13,000 mark
mark since 2008, the Dow Jones Industrial Average (DJIA) is flat
heading into today's session. With
Greece's fiscal-driven drama
seemingly tempered at the moment, and existing home sales the only
notable economic report on the domestic docket, traders appear
hesitant to make any major moves on the lack of big market news.
Against this muted backdrop, futures on both the DJIA and the
broader S&P 500 Index (SPX) are trading just below
breakeven.
In earnings news, Dell (DELL - 18.21) booked a fourth-quarter
profit of $764 million, or 43 cents per share, down 18% from last
year's earnings of $927 million, or 48 cents per share. Excluding
items, DELL raked in 51 cents per share, while revenue edged up
2.2% to $16.03 billion. The results were mixed, as Wall Street was
looking for a profit of 52 cents per share on $15.96 billion in
revenue. For the current quarter, DELL is expecting revenue to
retreat about 7% sequentially to $14.91 billion, falling short of
the average analyst estimate of $15.17 billion. DELL is set to drop
7% right out of the gate.
Elsewhere, Cheesecake Factory (CAKE - 31.57) revealed a
fourth-quarter profit of $29.9 million, or 54 cents per share, up
37% from $21.9 million, or 36 cents per share, in the year-ago
period. Excluding items, earnings came in at 53 cents per share.
Meanwhile, revenue rose by 14.6% to $477.7 million, boosted by a
2.7% increase in same-store sales. The results beat analysts'
forecast for adjusted earnings of 52 cents per share on revenue of
$471.7 million. Looking ahead, the company expects to open seven to
eight new locations within the U.S. in the coming year, and as many
as three locations in the Middle East. CAKE is trading 3.7% lower
ahead of the bell.
After the close last night, Herbalife Ltd. (HLF - 62.46)
unveiled a fourth-quarter profit of $105.4 million, or 86 cents per
share, up 18% from $86.3 million, or 69 cents per share, in the
year-ago quarter. Meanwhile, revenue rose 20% to $884.6 million.
The results easily bested Wall Street's forecast for a per-share
profit of 73 cents on $856.6 million in sales. Looking ahead, HLF
believes its current-quarter earnings will range between 76 cents
and 80 cents per share, while analysts are anticipating earnings of
78 cents per share. The nutritional supplements retailer also upped
its 2012 profit outlook to a range of $3.40 and $3.60 per share,
encompassing the average analyst estimate of $3.49 per share. HLF
is up more than 5% in pre-market trading.
Finally, Intuit Inc. (INTU - 57.52) banked a fiscal
second-quarter profit of $118 million, or 39 cents per share, a 62%
year-over-year increase from $73 million, or 23 cents per share.
Excluding items, earnings arrived at 51 cents per share. Revenue
was also on the rise, jumping 16% to $1.02 billion. Both figures
topped analysts' expectations for adjusted earnings of 45 cents per
share on $1.01 billion in revenue. Looking ahead, the tax software
specialist upwardly revised its outlook for the current quarter,
predicting adjusted earnings of $2.47 to $2.51 per share on revenue
ranging between $1.95 billion and $1.99 billion. Analysts,
meanwhile, are calling for a third-quarter profit of $2.49 per
share on $1.98 billion in sales. INTU is set to start the session
with a 3.4% lead.
Earnings Preview
Today's earnings docket will also feature reports from
Hewlett-Packard (
HPQ
), Analog Devices (
ADI
), Angie's List (
ANGI
), Boston Beer (
SAM
), CardioNet (
BEAT
), Caribou Coffee (CBOU), Clean Harbors (CLH), Dollar Tree (DLTR),
Express Scripts (ESRX), Fluor (FLR), Garmin (GRMN), Limited Brands
(LTD), MGM Resorts (MGM), NuVasive (NUVA), Onyx Pharmaceuticals
(ONXX), Questcor Pharmaceuticals (QCOR), Skullcandy (SKUL), and
Toll Brothers (TOL). Keep your browser at
SchaeffersResearch.com
for more news as it breaks.
Economic Calendar
Today's calendar features the latest data on existing home
sales. On Thursday, we'll hear the usual report on weekly jobless
claims, along with the holiday-delayed update on domestic crude
inventories. Also on tap is the FHFA housing price index. The week
wraps up on Friday with the final Thomson Reuters/University of
Michigan consumer sentiment index for February, as well as new home
sales data.
Market Statistics
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,537,133 call contracts traded on Tuesday, compared to
954,523 put contracts. The resultant single-session put/call ratio
arrived at 0.62, while the 21-day moving average was 0.61.
Overseas Trading
Asian markets ended mostly higher today, but the gains were
relatively modest amid lingering Greek caution. In China, traders
cheered a four-month peak in HSBC's flash purchasing managers index
(PMI), even as the indicator pointed to an ongoing contraction in
the country's manufacturing sector. The reading seemed to leave
room for further easing measures out of Beijing, following the
central bank's weekend decision to trim its reserve requirement
ratio for banks. In Tokyo, exporters traded higher as the U.S.
dollar gained ground on the yen, while energy stocks advanced as
crude prices touched a nine-month high. By the close, Japan's
Nikkei rose nearly 1%, China's Shanghai Composite added 0.9%, Hong
Kong's Hang Seng tacked on 0.3%, and South Korea's Kospi edged up
0.2%.
European equities are pointed south at midday, as traders
respond to a disappointing euro-zone PMI reading. Markit's index
retreated to a preliminary 49.7 in February, dropping from
January's reading of 50.4. The unexpected slowdown in regional
activity suggests that recession is still a threat for the fiscally
fractured euro zone, sending most major benchmarks lower. At last
check, London's FTSE 100 and the French CAC 40 have both shed 0.3%,
while the German DAX is down 0.6%.
Currencies and Commodities
The greenback is headed higher this morning, with the U.S.
dollar index up 0.3% at $79.30. After finishing yesterday's session
at a nine-month high, crude oil is looking to
pare some of those gains
, with the front-month contract down 0.6% at $105.64 per barrel.
Gold futures have pulled back, as well, with the malleable metal
0.2% lower to trade at $1,755.00 an ounce.
Unusual Put and Call Activity:
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