A plethora of earnings reports has traders looking at a lower open for stocks as S&P futures (sp03m) trade down 4.6 points at 888.40, while NASDAQ futures (nd03m) slip 6 points at 1,078.50 and Dow futures (dj03m) fall 45 points to 8,280.
Shares of drug maker Forest Labs (NYSE:FRX) $52.47 are trading down 10% from Monday's close at $47.00 over the New York ECNs after missing upwardly revised estimates by a penny. The company said it earned $180.7 million, or 48 cents per share for its fiscal fourth quarter, compared with $96.6 million, or 26 cents per share in the year-ago period.
In past commentary, I've been bullish on Forest Labs (FRX), but this morning's pre-market action most likely has the stock generating a double-bottom sell signal at $50.00 and has me assessing downside risk to FRX's bullish support trend at $43. I would currently look to sell a covered call at the $50 strike.
Notable upside earnings reports where company's beat bottom line estimates of analysts have Argosy Gaming (NYSE:AGY) $19.89 beating by 3 cents, Blockbuster (NYSE:BBI) $17.40 beating by 8 cents, Boise Cascade (NYSE:BCC) $22.19 reporting a loss, but beating by 9 cents, Chicago Mercantile (NYSE:CME) $48.72 beating by 13 cents, Eli Lilly (NYSE:LLY) $59.47 beating by 3 cents, Harrah's (NYSE:HET) $36.23 beating by 7 cents, International Game Technology (NYSE:IGT) $81.61 beating by 9 cents, PACCAR (NYSE:PCAR) $57.19 beating by 31 cents, Lockheed Martin (NYSE:LMT) $45.25 beating by 13 cents and UPS (NYSE:UPS) $57.87 beating by 3 cents.
Downside earnings reports had Ashland (NYSE:ASH) $29.94 reporting a wider than expected loss and missing estimates by 4 cents, Bechmark Electronics (NYSE:BHE) $31.01 missing by a penny, JAKKS Pacific (NASDAQ:JAKK) $13.00 missing by 7 cents, Occidental Petroleum (NYSE:OXY) $30.60 missing by 7 cents and SPX Corp. (NYSE:SPW) $13.55 missing by 4 cents.
Note: Above earnings reports may include or exclude one time charges, but should be comparable to analysts estimates.
While stock futures take on a somewhat negative trade ahead of today's open, Treasuries are finding buying across the major maturities with the 10-year June futures contract (ty03m) $114'130 -0.33% trading higher by 12/32 with the benchmark 10- year YIELD ($TNX.X) falling 4.5 basis points to YIELD 3.934%.
A quick look at the June Gold futures (gc03m) contract shows gold finding some bids with the June contract rising $1.60 to 335.50.
The dollar is weak as the euro rose nearly 1% versus the dollar to the $1.06-$1.095 level. On a broader scale, the U.S. Dollar Index (dx00y) is falling 0.97 to 98.62 against a basket of 7 major foreign currencies.
Per last night's Index Trader Wrap at OptionInvestor.com, I would view this morning's gold/dollar/Treasury action as a negative for the broader equity markets here in the U.S..