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Stock futures edging higher

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Stock futures are edging higher after traders took a 3-day rest in observance of Memorial Day. S&P futures (sp02m) trade higher by 4.1 points at 1,086.50, while NASDAQ futures (nd02m) gain 9.5 points at 1,267 and Dow futures (dj02m) rise by 37 points at 10,130.

Fair value for the S&P 500 today is $0.21. That price will not change during the session. HL Camp & Company has their computers set for program buying at $1.70 and set for selling at $-0.65. Fair value for the NASDAQ-100 today is $2.10. If you would like more information regarding fair value, how it is calculated, and its uses, please visit www.programtrading.com

Personal income and spending show modest increases

Personal income matched the consensus estimates with a 0.3% increase in April. Spending was up 0.5%, a bit less than the 0.7% consensus. Though slightly below consensus on the spending side, the data had little impact on stock futures and should have little impact on today's trading.

Dynegy's CEO steps down

Dynegy (NYSE:DYN) $9.30 said its chairman and chief executive officer Chuck Watson has resigned as the energy trading firm continues to face controversy. The board of directors said it accepted the resignation and appointed Glenn F. Tilton, vice chairman of ChevronTexaco (NYSE:CVX) and a Dynegy director, as interim chairman. Board member Daniel L. Dienstbier, who is president of Northern Natural Gas, has been appointed interim chief executive officer. Dynegy said it is currently in search of a new CEO and chairman.

Williams Company may issue stock and evaluate dividend

Energy trader Williams Company (NYSE:WMB) $17.42 said it plans to improve finances by more than $3 billion during the next 12 months. Actions are expected to include issuing common stock ($1.5-$3 billion), increasing cash flow and making additional cuts in expenses ($100 million). WMB is evaluating the impact on its near-term earnings targets. Also, WMB will continue to evaluate the level of its common-stock dividend, saying it expects the major credit-rating agencies to continue to put pressure on this sector of the energy industry in the near-term.

Jeff Bailey
Senior Market Technician
Option Investor

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