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Stock futures higher, but losing steam

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Stock futures are higher this morning, but have lost some steam from higher levels found earlier this morning as overseas markets show losses into their closes, putting a positive open in for U.S. stocks in doubt.

S&P futures (sp02u) currently trade higher by 4.5 points at 824.30. NASDAQ futures are higher by 1.00 point at 944.50 and Dow futures are up 35 points at 7,820.

Fair value for the S&P 500 today is $0.89. That price will not change during the day. HL Camp & Company has their computers set for program buying at $2.88 and set for program selling at $-1.91. Fair value for the NASDAQ-100 today is $3.32.

The U.S. dollar is showing strong gains this morning as the U.S. Dollar Index (dx00y) $106.08 +1.26 trades higher. The strength in the dollar may be attributing to equity weakness in overseas markets. The dollar gained nearly 1-cent in Europe, pushing the eruo back under $1 for the first time in a week. The dollar is also stronger versus the yen this morning with the September yen futures (jy02u) falling 0.92%.

This morning's dollar strength has gold showing some weakness as December gold futures (gc02z) fall $3.10 to %322.60 -0.97%.

Lucent misses by 2-cents

Telecom equipment maker Lucent Technologies (NYSE:LU) $2.10 fell to $1.95 (-7.04%) over Redibook ECN after the company reported an earnings loss of $-0.16 a share for its latest third quarter, which was 2-cent below consensus for a loss of $-0.14 a share. The company also said it would cut 7,000 more jobs and declined to give an outlook for its fiscal fourth quarter.

AT&T beats estimates

Telecom service provider AT&T (NYSE:T) $9.52 trades higher at $9.92 (+4.2%) in the pre-market after the company reported an earnings loss of $12.75 billion, which included charges. Stripped of the charges, the company reported second quarter net income from continuing operations of $0.07 a share, which was 3- cents better that consensus and up from year-ago $0.04 EPS. The company said revenues fell 6.2% to $12.1 billion (consensus was $12.043 billion).

Treasuries see modest selling

The 30-year ($TYX.X) 5.307%, 10-year ($TNX.X) 4.489% and 5-year ($FVX.X) 3.595% are all seeing marginal selling this morning. With the U.S. dollar showing strength, a move above the 4.635% YIELD level in the benchmark 10-year YIELD ($TNX.X) could have a strong U.S. stock rally taking hold. That would be a heck of a lot of selling in this bond today, but a level that traders can monitor against.

Jeff Bailey
Senior Market Technician
Option Investor

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