In the Headlines
Wall Street was attempting a rebound early Thursday, with futures pointing higher. In addition to the usual slew of headlines from Europe, today's news includes weekly jobless claims data for the market to chew on.
Despite the upbeat futures trade, stocks have a lot of ground to make up after Wednesday's rout on major indices. The NYSE fell 4.2%, the S&P 500 3.7% and the Nasdaq Composite 3.9%, all in heavy volume.
European indices were trading in positive territory before Wall Street trading got under way, reversing higher after Greece named a new prime minister.
Traders breathed a small sigh of relief as developments from Italy were proceeding as expected. Lawmakers there will vote on the 2012 budget in the next few days. After that, Prime Minister Berlusconi is expected to step down, with a temporary technical government put into place by next week.
Meanwhile, the European Central Bank (ECB) has reportedly been supporting the Italian two-year note, resulting in a decline in yields. However, the yield on Italy's 12-year Treasury bill was rising.
The euro moved higher vs. the dollar this morning.
In Asia, markets followed Wall Street's cue, tumbling in Thursday's session on Italian debt worries. Data showing a slowdown in Chinese exports didn't help matters.
At 8:30 a.m. EST, the Labor Department will release numbers on last week's unemployment claims, with data collected from the states. As usual, economists expect to see 400,000 new claims, along with a possible revision higher of last week's 397,000.
Also at 8:30 is more Labor Department data, in the form of import/export prices for October. These data typically don't move the market. Analysts see import prices rising 0.3%, and export prices up 0.4%.
Also likely to be dwarfed by the unemployment data are the Labor Department's trade balance numbers for September. Though this report doesn't get a lot of media attention, it's an element of the GDP report. The trade gap is expected to grow to $46 billion from August's $45.6 billion.
Gold fell $19.50 per ounce to $1,772.10 in Comex trade.
Crude oil was up $1.85 in electronic trade, to $97.59 per barrel.
Pre-bell earnings included Kohl's (KSS) third-quarter report. The retailer said earnings were $0.80 per share, and revenue was $4.4 billion. That was a penny ahead of profit views, and in line with revenue expectations.
Another closely watched retailer, Nordstrom (JWN), reports its third quarter after the bell. It's seen earning $0.59 a share on sales of $2.39 billion. Though it won't affect today's report, the company has made news because it is holding off from holiday-season sales until Black Friday. That makes it, along with Kohl's and Target (TGT), among the few retailers that haven't already begun to deck the halls. Analysts are fretting about the effect of these decisions on stores' seasonal results.
Later today DJIA component Disney is set to release its fiscal fourth-quarter report. The Mouse House is expected to show income of $0.54 per share on $10.36 billion in revenue. Analysts will be listening for information about key categories including ad revenue and theme park attendance.
Graphics chip maker Nvidia (NVDA) reports its third quarter after the bell. Analysts are watching how its results key to PC sales, especially after Intel (INTC) showed that the market may not be as dire as earlier believed. The market for professional graphics gear will also be eyed.
Wall Street anticipates Nvidia earnings to come in at $0.26 per share on revenue of $1.06 billion. Those would represent year—over-year top-and bottom-line gains.
Cisco (CSCO) bolted $1.01 in early trade, a gain of 5.74%, to $18.62. Late Wednesday the networking gear maker reported better-than-expected quarterly results and boosted its outlook.
Green Mountain Coffee Roasters (GMCR) plummeted $22.67, 33.83%, to $44.35 following yesterday's big revenue miss. There were already problems in the stock, heading into today's session. While the rest of the market rallied in October, Green Mountain skidded 30%.
Advance Auto Parts (AAP) beat views in its third-quarter report yesterday, and raised its full-year earnings estimate. However, this morning, Credit Suisse downgraded the stock to Neutral from Outperform. Despite the downgrade, shares were up $0.13 ahead of the bell, a gain of 0.20%, to $66.50.
Oil-and-gas explorer Concho Resources (CXO) was demoted to Neutral from Buy at Goldman Sachs. Concho shares are holding above their 40-week moving average, but are trading well below February's all-time high of $110.89.