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Stock futures fractionally red

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Stock futures are fractionally red this morning and traders will most likely be looking for a lower open. S&P futures (sp01z) are currently trading down 4 points at 1,098, NASDAQ futures (nd01z) are down 11.5 points at 1,469 and Dow futures (dj01z) are lower by 52 points at 9,435. Fair value for the S&P 500 today is $1.92. HL Camp & Company has their computer set for program buying at $3.02 and set for selling at $0.15. Fair value for the NASDAQ-100 today is $4.80.

Economic data at 10:00 EST

Traders may be looking to book some profits early this morning and then wait to see what type of economic data hits the wires at around 10:00 EST. Existing home sales for August, New Home Sales for September and University of Michigan Consumer Sentiment survey for October are just a few of today's most widely monitored reports.

Earnings reported before the bell

Baker Hughes (NSYE:BHI) reported earnings of $0.40, which was well ahead of estimates for $0.35. Yesterday, BHI went out at $35.02. Technicals there show a rounding 200-day MA just ahead at $36.49.

LM Ericsson (NASDAQ:ERICY) reported a loss of 5 cents, which was lower than analysts estimates looking for the company to lose 4 cents a share. ERICY finished yesterday's trading at $4.35, closing right on its 50-day MA, with 200-day MA ahead at $6.32.

There are other companies with earnings out before the bell, but we've run out of time for the 09:00 update.

Game plan

Look for the Consumer Sentiment numbers to be the most highly probable number to determine market direction today. Understand there will be some profit taking from yesterday's action near the open. The S&P 500 closed right at its 50-day moving average, which has been a level of resistance in past months and looks to be a target for bulls to take profits and bears to try and push things lower. You know it, I know it and obviously the market knows it. If you've got a profit of 5% or more in the current market environment, don't watch it evaporate and turn into a loss.

Jeff Bailey
Senior Market Technician
Option Investor

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