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Stock futures hover near unchanged

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Stock futures are all hovering right around the unchanged level this morning. S&P futures are up fractionally at 1,169, NASDAQ futures are trading down 1 point and Dow futures are down 20 points at 10,090.

Fair value for the S&P 500 today is $0.46. HL Camp & Company has their computers set for program buying at $1.59 and set for program selling at $-0.87. Fair value for the NASDAQ-100 today is $1.43. If you'd like more information on fair value or buy/sell programs, please visit www.programtrading.com.

Jobless claims fall in latest week

First-time requests for unemployment claims fell 18,000 in the latest week to 475,000. Labor officials said unemployment numbers will most likely be volatile through the holiday season, with shortened workweeks and other factors impacting the statistics. The closely watched 4-week moving average, rose 5,750 to 460,750.

Continuous claims for unemployment fell in the latest week by 349,000 to 3.64 million. This weeks drop is quite large and a drop of this magnitude hasn't been seen since January 1983.

Bond YIELDS snap higher still

This mornings jobless data looks to have bond market participants selling bonds for the second straight session. YIELDS on the 5- year ($FVX.X) and 10-year ($TNX.X) are jumping higher at 4.359% and 5.003% respectively.

Equity traders should be on the alert and looking for stocks that are breaking out of bases. Today's action in the bond market looks like what we saw yesterday morning. Right now, stock futures have yet to respond to the upside, but watch things closely as the trading session unfolds. I view this morning's action in the bond market as bullish for stocks longer-term.

XM Satellite Radio announced public offering

XM Satellite Radio (NASDAQ:XMSR) announced the public offering of 10 million shares of common stock, resulting in gross proceeds of $112.5 million. The company has also granted the underwriters an option to purchase an additional 1.5 million shares to cover over-allotments. The national digital radio service provider added that it has finalized a previously-announced $66 million funding package with Boeing (NYSE:BA), which includes $35 million in new debt. Yesterday, shares of XMSR closed at $12.78 and currently trade $12.25 in pre-market action. Yesterday, I commented regularly on shares of XMSR in the market monitor on OptionInvestor.com. We noted that short interest according to www.shortininterest.com was reported at roughly 10 million shares short as of November 29th. Today's announcement of the public offering of 10 million shares may have something to do with that short interest and a catalyst for the stock in the form of a "short squeeze" may not be there now. Trader's can continue to hold the stock long, but may want to snug a stop up under the $12 level.

Jeff Bailey
Senior Market Technician
Option Investor

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