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Durable goods orders stronger than expected

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This morning's economic data shows April durable goods orders jumped 1.1% after gaining a revised upward 0.2% in March. Economists were looking for a gain of just 0.4%. Shipments of durable goods surged 3.5% in March, hinting that the economy was actually starting to see some "pull-through" from demand and not just inventory rebuilding. Durable goods order gains were lead by a 12% rise in orders for autos.

Jobless claims fall by 9,000

Jobless claims for the week ended May 18 fell by an expected 9,000 to 416,000, which was in line with economist's expectation. The 4-week moving average, which smoothes out week-to-week fluctuations, fell 2,750 to 420,000. The unemployment rate was 3.0% for the week ended May 11, the highest since the week ended February 26, 1983.

Stock futures rebound

Stock futures were indicating a lower open on Wall Street, but this morning's economic data has futures turning higher as S&P futures jump up 5.4 points to 1,090.50. NASDAQ futures are higher by 13.5 points at 1,278, while Dow futures gain 48 points at 10,200.

Fair value for the S&P 500 today is $0.23. That price will not change during the session. HL Camp & Company has their computers set for program buying at $1.68 and set for selling at $-0.50. Fair value for the NASDAQ-100 today is $2.25. If you would like more information on fair value, how it is calculated, along with buy/sell programs, please visit www.programtrading.com.

CIENA slumps on earnings report

Shares of optical networker CIENA Corp. (NASDAQ:CIEN) $6.44 are trading lower in pre-market action at $6.10 (-5.2% from close) after the company reported Q2 GAAP loss of $1.86 per share, including charges related to excess inventory. Revenues declined 79.5% to $87.1 million (consensus $95.21 million). For Q3, the company sees flat to lower revenues on a sequential basis (consensus was for a 2% increase to $97.03 million).

Jeff Bailey
Senior Market Technician
Option Investor

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