SBN – Softbrands Inc
SVNT - Savient Pharmaceu…
VEXP - Velocity Express …
PGV- Velocity Portfoli…
GSB - GlobalSCAPE Inc
CLAWS – Capitol Acquisiti…
ICOP - ICOP Digital Inc
GLUU -Glu Mobile Inc
CACAW – Chardan 2008 Chin…
WH - WSP Holdings Ltd
APPY – AspenBio Pharma Inc
GBE – Grubb & Ellis Com…
IBCPO – Ibc Cap Fin Ii
LZR - Emergent Group Inc.
RGN - RegeneRx Biopharm…

Stocks finished lower for a second straight session Tuesday as more cases of swine flu and bank worries offset a spike in consumer confidence. Trading was choppy for the bulk of the session.

The NYSE composite lost 0.4%, while the Nasdaq and S&P 500 slipped 0.3% each. The Dow fell a milder 0.1%, thanks to IBM (IBM), which raised its dividend and approved an additional $3 billion stock buyback. Big Blue rose 2%.

Volume dropped on both exchanges — a good sign that professionals didn’t dump shares.
Brink’s Home Security (CFL) fell 7% in heavy trading, snapping a three-session advance. It was the biggest percentage decliner in the IBD 100. The downturn left the stock slightly above a 25.82 buy point from a cup-with-handle pattern.

Longtop Financial Technologies (LFT) fell 3% in double average trade. It was down as much as 10% at its session low. The Chinese financial software firm late Monday announced an acquisition and filed to sell 16 million shares.

On the upside, Aaron’s (AAN) gapped up and surged 17% in huge volume. Late Monday, the rental firm easily beat views with a 55% jump in Q1 earnings. It also raised its full-year profit outlook.

Green Mountain Coffee Roasters (GMCR) reversed losses and rallied nearly 5% to a record high. The stock cleared a 55.71 buy point from a three-weeks-tight pattern.

Elsewhere, GDP numbers and the Fed’s decision on interest rates will be out Wednesday.

Earnings due: Aetna (AET), ArcelorMittal (MT), Burger King (BKC), Citrix

Systems(CTXS), Express Scripts (ESRX), FTI Consulting (FCN), General Dynamics

(GD),MedAssets (MDAS), Medco Health Solutions (MHS), Moody’s (MCO), O’Reilly

Automotive (ORLY), SAP (SAP) and Visa (V).

The outbreak of swine flu in Mexico has led to a grounding of travel and leisure stocks worldwide, and also to fears that a possible recovery in the global recession may be derailed. The disease has killed 103 people in Mexico, virtually shutting down Mexico City on Sunday. The flu reportedly is being transmitted from human to human, unlike bird flu, which was transmitted only from animals to humans.

Outside of swine flu, Wall Street will also be digesting the weekend G7 meeting, in which leaders gave a largely optimistic view on the economy. “There are signs that the pace of deterioration in economic activity and trade flows has eased,” Treasury Secretary Timothy Geithner said. The banking sector will also be in the spotlight, as the Federal Reserve released its parameters for conducting stress tests. Meanwhile, Bank of America (BAC: sentiment, chart, options) could be in focus, as ex-Merrill Lynch CEO John Thain told The Wall Street Journal that the bank lied about its role in giant bonuses and losses at Merrill.

In currencies and commodities, the U.S. Dollar Index has gained 0.66% to 85.27 in electronic trading, as the greenback has regained some of its safe-haven allure this morning. Gold futures, meanwhile, are trading flat amid the dollar’s strength, with the front-month contract down 30 cents an ounce at $913.60 in London. Finally, crude oil futures are being hit hard as flu fears grind travel plans to a halt. In electronic trading, the June contract was off 5.29% at $48.71 per barrel.

In earnings news this morning, Corning Inc. (GLW) reported that first-quarter net income plunged 94% to $14 million, or 1 cent per share, from $249 million, or 16 cents per share, in the year-ago period. Excluding one-time items, the company would have earned 10 cents per share. Analysts were expecting earnings of 5 cents per share. Sales fell 9% to $989 million from $1.62 billion. The company is not providing second-quarter guidance, but added, “We expect to see significant sequential improvement in the company’s sales, gross margin, and earnings before special items.”

Verizon Communications Inc. (VZ) announced that first-quarter profit rose 5.3% as the No. 1 U.S. mobile-phone company added 1.3 million net wireless customers. Net income increased to $3.21 billion, or 58 cents per share, from $3.05 billion, or 57 cents per share, a year earlier. Revenue jumped 11.6% to $26.6 billion. Adjusted for one-time items, Verizon said it would have earned 63 cents per share, versus analyst expectations for a profit of 59 cents per share.

Finally, Whirlpool (WHR) reported that first-quarter profit fell 28% to $68 million, or 91 cents per share, as sales dropped 23% to $3.6 billion. However, the company reiterated its guidance of annual earnings between $3 and $4 per share, but lowered its U.S. and Europe industry shipment view. Analysts had forecast a loss of 16 cents per share for the quarter, with earnings of $2.98 per share for the year.
Earnings Preview
Today, BE Aerospace, Inc. (BEAV), Humana Inc. (HUM), Qualcomm, Inc. (QCOM), and Baidu, Inc. (BIDU) are slated to release their quarterly earnings reports.

Economic Calendar
The economic calendar is devoid of reports today, while April’s consumer confidence index and the February Standard & Poor’s/Case-Shiller home price index are scheduled for release on Tuesday. Wednesday offers up advance first-quarter gross domestic product (GDP) and chain deflator figures, as well as the weekly report on U.S. petroleum supplies and the Federal Open Market Committee’s decision on interest rates and monetary policy.

On Thursday, weekly initial jobless claims are joined by March’s personal income and spending reports, the first-quarter employment cost index, and the April Chicago purchasing managers’ index. The week ends on Friday with the revised April UBS/University of Michigan consumer sentiment index, March factory orders, the April Institute of Supply Management’s manufacturing index, and April automobile sales.

Market Statistics
Equity option activity on the Chicago Board Options Exchange saw 1,768,001 call contracts traded on Friday, compared to 1,143,375 put contracts. The resultant single-session put/call ratio fell to 0.65, while the 21-day moving average held at 0.66.

**The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher.**

Stock futures are higher ahead of the bell, as Apple Inc. (AAPL) earnings didn’t fall far from the tree. The tech titan reported second-quarter figures that toppled expectations, with iPhone sales more than doubling from a year ago. Meanwhile, though eBay’s (EBAY) first-quarter figures were 22% lower than a year earlier, the online auctioneer breezed past the Street’s predictions. However, not every firm’s pre-market trip to the earnings confessional was pleasant – just ask Potash Corp. of Saskatchewan (POT), which trimmed its full-year potash gross margin estimates. Nevertheless, investors seem to have a glass-half-full attitude, as the major market indices are poised to start the session on a high note.
In currencies and commodities, the U.S. Dollar Index is trading lower this morning, with the index down 0.15% at 86.06 in pre-market trading. Gold futures are basically flat, with the front-month contract up $1.70 at $894.20 an ounce in London. Finally, crude oil futures are trading slightly higher, with the June contract up 0.64% at $49.47 per barrel in electronic trading.
Apple Inc. reported a second-quarter net income of $1.2 billion, or $1.33 per share, compared to earnings of $1 billion, or $1.16 per share, for the same period the previous year. Sales grew 9% to $8.17 billion for the quarter. Analysts were expecting Apple to report earnings of $1.09 per share on revenue of $8 billion. The tech titan said that iPhone sales more than doubled from a year ago to 3.8 million, though sales of its Macintosh computers fell for the first time in nearly 6 years. In addition, Chief Financial Officer Peter Oppenheimer said the company is looking forward to Steve Jobs returning at the end of June.
eBay Inc. said Wednesday that its first-quarter net income fell to $357 million, or 28 cents per share, from $460 million, or 34 cents per share, in the same period last year. Revenue fell to $2.02 billion from $2.19 billion. Excluding special items, eBay said earnings for the quarter were 39 cents per share. Analysts were looking for a profit of 33 cents per share on $1.94 billion in revenue.
Elsewhere, Potash Corp of Saskatchewan posted first-quarter earnings of $308.3 million, or $1.02 per share, down 46% from the $566 million, or $1.74 per share, it earned a year earlier. The firm said sales fell 51% to $922.5 million, as prices for nitrogen products and solid phosphate fertilizer subsided substantially. Analysts, on average, had forecast a profit of 82 cents per share on $857.8 million in revenue during the first quarter. In addition, the company now estimates full-year potash gross margin of $2.5 billion to $3 billion, and said it doesn’t expect potash demand to rebound until the second half of 2009.
Earnings Preview
Today, AutoNation, Inc. (AN), EMC Corp. (EMC), Fifth Third Bancorp (FITB), PNC Financial Services (PNC), United Parcel Service, Inc. (UPS), Amazon.com, Inc. (AMZN), American Express Co. (AXP), Juniper Networks, Inc. (JNPR), Microsoft Corp. (MSFT), and Netflix, Inc. (NFLX) are slated to release their quarterly earnings reports.
Economic Calendar
The economic calendar offers up March’s existing homes sales data today, as well as the weekly report on U.S. initial jobless claims. We round out the week tomorrow with March’s new home sales figures.
Market Statistics
Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,951,323 call contracts traded on Wednesday, compared to 1,250,575 put contracts. The resultant single-session put/call ratio fell to 0.64, while the 21-day moving average held at 0.65.

**The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher.**

Overseas Trading
Overseas trading is gaining strength this morning, as 9 of the 11 foreign indices that we track are in positive territory. The cumulative average return on the collective stands at 0.73%. Asian markets ended mostly higher Thursday, with auto shares driving gains in Japan, while Pioneer soared 23% after Honda Motor (HMC) said it was considering an investment in the company. In addition, Goldman Sachs raised its rating on Toyota Motor (TM) and Honda Motor to “buy” from “neutral,” while boosting Nissan Motor (NSANY) to “neutral” from “sell.” The move helped lift TM 3.5%, while HMC rose 1.7%, and Nissan climbed 2.2%. Elsewhere, Hong Kong stocks rebounded from the day prior’s steep losses, with HSBC Holdings (HBC) gaining 2.5% and Industrial & Commercial Bank of China adding 2.8%, while Aluminum Corp. of China (ALC) jumped 4.6%.
Across the pond in Europe, a rebound in banks and rising strength in the oil sector is helping to lead regional indices steadily higher. Within the financial sector, shares of Deutsche Bank (DB) and Societe Generale climbed 1.1%. Meanwhile, Credit Suisse (CS) jumped 7.1% after the company swung to a first-quarter profit that came in far better than expected. The banking giant made 2.01 billion Swiss francs in net income, compared with a loss of 2.15 billion francs in the year-earlier period. Oil producers were also higher, with shares of Total up 1.1%, as light sweet crude oil futures rose back over $49 per barrel.

The U.S. Dollar Index (DX/Y) fell 0.4% to trade at 86.20 on Wednesday, as the dollar lost ground against the euro and the Japanese yen following a rebound in the equities market. Meanwhile, the British pound plunged after the U.K. government said it planned to borrow more, with Chancellor of the Exchequer Alistair Darling hinting at record levels this year. Against this backdrop, the pound fell 1.2% versus the dollar to $1.4489. Meanwhile, the dollar dropped to 97.93 yen, and the euro rose to $1.3001.
The futures contract on the 30-year bond (US/1 – 124′20) dropped 1-1/32 on Wednesday, as Treasurys prices fell, pushing yields to their largest gain in more than a month. Pressuring the bond market was a rally in U.S. equities and news that California brought an expanded $6.85 billion building-bond sale to market – the largest sale to date of securities under a new federal program created by the February fiscal stimulus package.

Commodity Corner
Reports of rising physical demand led to a positive day for gold futures on Wednesday. Imports of the malleable metal into India are on the upswing, as the country prepares for the Akshaya Tritya festival on April 27. (Hindus consider the occasion an auspicious time to buy the malleable metal.) Currency fluctuations also buoyed gold futures; the U.S. dollar lost ground against a few of its key foreign rivals yesterday as traders rediscovered their appetite for risk. Against this backdrop, gold for June delivery gained $9.80, or 1.1%, to finish at $892.50 per ounce.

Commodity traders yesterday continued their recent habit of completely overlooking bearish inventory data for crude futures. The Energy Information Administration (EIA) reported that U.S. crude supplies jumped by 3.7 million barrels last week, exceeding analysts’ expectations and marking the heftiest oil supply in nearly 19 years — yet the front-month contract still collected a daily gain. Rather than taking its cues from the inventory data, black gold kept pace with a modest afternoon advance in the stock market. Elsewhere, the U.S. dollar’s weakness versus the euro and the Japanese yen also sparked some minor buying interest. By the close, crude oil for June delivery added 30 cents, or 0.6%, to end the day at $48.85 per barrel.

Unusual Put and Call Activity:

Option Blogger › Tools — WordPress.

U.S. stock futures are trading below fair value this morning, indicating that we could be in for negative start to the regular session of trading. Headlining the newswires this morning is news that Apple (AAPL) CEO Steve Jobs will be taking medical leave until at least the end of June. Elsewhere, earnings reports continue to fall flat, as J.P. Morgan Chase (JPM) failed to impress with its quarterly earnings report, and Xlilinx (XLNX) is little changed in pre-market activity after unveiling its third-quarter figures.

Checking in on currencies and commodities, the U.S. Dollar Index is trading just below breakeven, off 0.11% at 84.32. Gold futures are attempting to take advantage of the dollar’s weakness, with the front-month contract up $5.50 at $814.40 an ounce in London. Finally, crude oil futures rose, with the February contract up 37 cents at $37.65 per barrel.

In equity news, Apple Inc. (AAPL:  ) Chief Executive Steve Jobs said after the close last night that he will take a medical leave of absence until the end of June. Chief Operating Officer Tim Cook will be responsible for daily operations. “Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well,” Jobs said in a statement. “In addition, during the past week I have learned that my health-related issues are more complex than I originally thought.” AAPL shares plunged more than 8% in after-hours trading following the news.

In earnings news, J.P. Morgan Chase (JPM) said that fourth-quarter earnings arrived at $702 million, or 7 cents per share, compared to a profit of $3 billion, or 86 cents per share, in the year -ago period. Total net revenue dipped to $17.23 billion in the quarter, from $17.38 billion last year. Analysts were expecting breakeven results on revenue of $18.83 billion.

Finally, Xilinx Inc. (XLNX ) reported third-quarter net income of $139.4 million, or 51 cents per share, compared with a net profit of $103.6 million, or 35 cents per share, for the year-earlier period. Revenue was $458.4 million, down 3% from $474.8 million a year ago. Analysts had expected earnings of 32 cents per share on revenue of $443.7 million.

Earnings Preview

Today, Shuffle Master, Inc. (SHFL), Intel Corporation (INTC), and Genentech, Inc. (DNA) are slated to step into the earnings confessional.

Economic Calendar

The economic calendar heats up with the release of the latest initial jobless claims, December’s producer price index (PPI), and the core PPI. Friday rounds out the week with December’s consumer price index (CPI), the core CPI, and the University of Michigan Consumer Sentiment preliminary index.

Market Statistics

Equity option activity on the CBOE saw 1,325,107 call contracts traded on Wednesday, compared to 1,275,406 put contracts. The resultant single-session put/call ratio rose to 0.96, while the 21-day moving average held at 0.75.

Overseas Trading

Overseas trading is in bad shape this morning, as just 1 of the 11 foreign indices that we track is in positive territory. The cumulative average return on the collective stands at a loss of 2.44%. In Asian trading, regional indices remained bathed in red, with resource stocks such as Rio Tinto and financials such as HSBC Holdings and KB Financial Group among the hardest hit as commodity prices retreated and after Wall Street tumbled overnight. Japanese shares digested some downbeat news on the local economy, with core machinery orders — a leading indicator of capital spending — dropping a seasonally adjusted 16.2% in November, steeper than the 7.5% fall forecast in a poll by Dow Jones Newswires and Nikkei. Elsewhere, Rio Tinto announced that its production in fourth-quarter 2008 was as expected, with global iron ore output dropping 18% from the year-earlier period, while production of aluminum increased, reflecting the completion of its acquisition of Alcan. Still, fourth-quarter earnings at Rio Tinto Alcan will be hurt by a sharp decline in aluminum prices, it said.

Across the pond in Europe, stocks pulled back from highs as the European Central Bank cut interest rates by a half point to 2%. The bank was widely expected to lower interest rates again as it battles to shore up the eurozone economy in the wake of a recent stream of poor data. In other news, Nestle led the food sector higher, up 2.5%. The firm was upped to “conviction buy” from “neutral” by Goldman Sachs after its underperformance since Oct. 31. We believe investors have grown increasingly concerned about the potential for an organic sales miss in 2009 (and the potential for an expensive take-out of L’Oreal ). “Based on our estimates which factor in a multi-year global recession, we believe the former is already largely discounted into the share price while the latter fear is overblown,” the broker said.

The U.S. Dollar Index (DX/Y) gained 0.1% to 84.35 on Wednesday, as lower-yielding currencies benefited from economic reports showing that retail sales in the U.S. dropped more than analysts were expecting, import prices plunged, and the economy is continuing to weaken. Retail sales, excluding autos, dropped 3.1%, their biggest drop since record-keeping began in the early 1990s. Against this backdrop, the euro fell to $1.3176, down from its Tuesday price of $1.3187. Meanwhile, the dollar declined to 89.05 yen from 89.35 yen on Tuesday.

The futures contract on the 30-year bond (US/1 – 136′28) soared 2-132 on Wednesday, as Treasuries benefited handily from weakness in the equities market. Yields fell to their lowest level this year.

Commodity Corner

Despite persistent concerns about the ailing U.S. economy, gold futures failed to receive a boost of safe-haven buying yesterday. Instead, the yellow metal fell to its lowest price in 5 weeks as dismal economic data seemed to suggest deflationary pressures are increasing. Additionally, gold was pressured by strength in the U.S. dollar, which gained ground against the euro as investors placed their bets on another interest rate cut from the European Central Bank. By the close, February-dated gold futures fell $11.90, or 1.5%, to settle at $808.80 per ounce. The contract finished not far from its intraday low of $806.60.

Wednesday’s weekly inventory report from the Energy Information Administration (EIA) revealed an increase in petroleum supplies, which combined with downbeat reports on the economy to diminish demand for oil futures. Not even the threat of deepened production cuts from OPEC could provide a lift for black gold, as the EIA observed that “Adherence to the announced cuts will be challenging, as several individual countries are motivated to maintain production at higher levels to generate revenue needed to finance their government programs amid falling prices.” Against this backdrop, crude oil for March delivery shed 58 cents, or 1.3%, to end the day at $44.19 per barrel.

U.S. stock futures are trading below fair value this morning, indicating that the Dow Jones Industrial Average (DJIA) could be in for its sixth consecutive session of losses. Today’s release of December retail sales data will do little to alter this downward trajectory, as analysts are looking for a year-over-year decline of 1.9%, excluding auto sales. However, the banking sector should take center stage, with an earnings warning from Deutsche Bank (DB), a downgrade for HSBC Holdings (HBC), and Citigroup (C) and Morgan Stanley (MS) finalizing plans for a joint brokerage venture. Finally, tech could also receive some scrutiny, with Oracle (ORCL) expected to cut jobs and Yahoo! (YHOO) appointing a new CEO.

Checking in on currencies and commodities, the U.S. Dollar Index is pulling back from yesterday’s highs, with the greenback last seen lower by 0.26% at 84.05 in pre-market trading. Gold futures are attempting to take advantage of the dollar’s weakness, with the front-month contract up $5.10 at $825.80 an ounce in London. Finally, crude oil futures are looking to extend yesterday’s rally, with the February contract up $1.19 at $38.98 per barrel.

As reported in Schaeffer’s Daily Market Blog last night, Morgan Stanley (MS) and Citigroup (C) unveiled their plan for a joint venture with their brokerage units. According to terms of the deal, Citi will get $2.7 billion and 49% control in exchange for swapping its Smith Barney unit. At closing, Citi said it will recognize a gain of roughly $5.8 billion after taxes.

Deutsche Bank (DB) plunged more than 7% in overseas trading, and could duplicate those losses on Wall Street, after the company said it expects to report a fourth-quarter net loss of around $6.4 billion. DB cited weak performance in credit trading, higher provisions on its exposure to bond insurers, and measures to reduce its exposure to risky assets. For the year, Deutsche Bank expects to report a loss of around 3.9 billion euros. The bank also said it expects its Tier 1 capital ratio to be in line with its 10% target rate, reflecting a dividend accrual of 0.50 euro per share for 2008.

HSBC Holdings (HBC:  ) was also punished in foreign trading, after Morgan Stanley analysts concluded that the company needs to raise another $20 billion to $30 billion in capital and should cut its dividend in half. “We now expect earnings to fall more sharply in 2009, with no recovery until 2011 at the earliest. Structurally, profits will be hit by falling and flattening yield curves, combined with the cyclical impacts of a global recession and FX, and this should impair HSBC’s dollar cash flow,” the broker said in a research note.

In the tech sector, Oracle Corp. (ORCL) is expected to cut 500 North American sales and consulting positions on Friday, according to reports in The Wall Street Journal. Elsewhere, Yahoo! Inc. (YHOO:  sentiment, chart, options) named Carol Bartz, the former head of Autodesk Inc. , as chief executive. The company also said that President Sue Decker will resign following the transition.

Earnings Preview

Today, AMR Corp. (AMR), Xilinx, Inc. (XLNX), Courier Corporation (CRRC), Volt Information Services, Inc. (VOL), and Mercantile Bank Corp. (MBWM) are slated to step into the earnings confessional.

Economic Calendar

The economic calendar offers up the usual crude inventories data and December retail sales numbers today. Tomorrow, the calendar heats up with the release of the latest initial jobless claims, December’s producer price index (PPI), and the core PPI. Friday rounds out the week with December’s consumer price index (CPI), the core CPI, and the University of Michigan Consumer Sentiment preliminary index.

Market Statistics

Equity option activity on the CBOE saw 1,187,578 call contracts traded on Tuesday, compared to 1,104,906 put contracts. The resultant single-session put/call ratio slipped to 0.93, while the 21-day moving average rose to 0.75.

Overseas Trading

Overseas trading is mixed this morning, as 6 of the 11 foreign indices that we track are in positive territory. The cumulative average return on the collective stands at a gain of 0.16%. In Asian trading, regional markets finished mostly higher, with Chinese banking shares leading the rebound in Shanghai and Hong Kong despite news that another multinational bank had sold Bank of China shares. Chinese traders had more to cheer about, as the country revised its gross domestic product growth rate upward for 2007 to 13%, indicating that it may have overtaken Germany as the world’s third-largest economy. Elsewhere, the energy sector gained strength from stocks such as Inpex Corp. and Woodside Petroleum following a rebound in crude oil prices, and Toshiba shares soared in Tokyo following reports that the company is in the final stages of talks to buy Fujitsu’s hard-disk drive business.

Across the pond in Europe, stocks are on pace to log their sixth consecutive session of losses, as traders continued to fret over the state of the banking sector. Within the group, HSBC Holdings dropped 8.2% after Morgan Stanley said that firm needs another $20 billion to $30 billion in capital and should halve its dividend. Meanwhile, Deutsche Bank fell 7.1% after the German lender said it expects to report a loss of around 4.8 billion euros in the fourth quarter of 2008. Barclays plunged 7.6% after the company said that it was considering cutting around 2,100 jobs at its investment banking and investment management divisions. Finally, Banco Santander gave back 4.7% when it was cut to “sell” from “neutral” at UBS.

The U.S. Dollar Index (DX/Y) gained 1.5 % to 84.24 on Tuesday, after data showed that the U.S. trade deficit narrowed in November. The greenback extended a 1-month high against the euro ahead of an expected interest rate cut from the European Central Bank. Against this backdrop, the euro fell to $1.3187, down from its Monday price of $1.3373. Meanwhile, the dollar declined to 89.11 yen from 89.06 on Monday.

The futures contract on the 30-year bond (US/1 – 134′26) finished flat and Treasurys were little changed on Tuesday, after Federal Reserve Chairman Ben Bernanke said that more government action would be necessary to strengthen the financial system. After earlier losses, U.S. equities declined and oil prices retreated, providing a late-session lift for bonds.

Commodity Corner

After hitting a 1-month low on Monday, gold futures got a brief lift from bargain hunting yesterday. However, continued strength in the dollar helped keep the malleable metal in check. After briefly rallying to the $831 level in late-morning trading, the front-month contract erased intraday gains to end with a fractional loss of 30 cents, or 0.04%, at $820.70 an ounce. Elsewhere, March-dated copper fell 3.9% to $1.547 a pound, while silver for March delivery shed 0.7% to $10.68 an ounce.

After 5 days in the red, crude oil futures pared some of their recent losses yesterday. Black gold got a boost thanks to news from Saudi Arabia, with the Organization of Petroleum Exporting Countries’ (OPEC) biggest producer vowing to slash production by more than previously expected in February. Also bolstering crude futures was the latest data from China – the world’s second-largest oil consumer – which indicated that crude oil imports moved at the slowest pace in 3 years in 2008. However, the Energy Information Administration’s (EIA) report that global oil consumption will fall by 800,000 barrels per day in 2009 weighed on the commodity, containing its rebound. By the close, crude oil for March delivery added $1.12, or 2.6%, to end at $44.77 per barrel.

U.S. stock futures are trading solidly below fair value this morning, hinting that the Dow Jones Industrial Average could be poised to log its fifth straight losing session. Alcoa Inc. (AA) is back in focus again today, after the company reported a $1.2 billion loss for the fourth quarter last night. Also in earnings, Lexmark International (LXK) warned that fourth-quarter earnings would be weaker than expected. Elsewhere, American International Group (AIG) could be on the verge of selling one of its business lines shortly, according to media reports. Finally, Merrill Lynch shifted its outlook on several consumer products companies, including Alberto-Culver (ACV), Kimberly-Clark (KMB), Energizer Holdings (ENR), and Newell Rubbermaid (NWL).

Checking in on currencies and commodities, the U.S. Dollar Index is set to extend yesterday’s rebound, as the greenback was last seen higher by 0.86% at 83.72 in pre-market trading. With the dollar higher, gold prices have had difficulty making headway, with the front-month contract off $1.30 to $819.90 an ounce in London. Finally, crude oil futures continue to be punished on prospects of declining demand amid a global economic slowdown. At last check, the February contract was off 63 cents at $36.95 per barrel.

After the close last night, Alcoa Inc. (AA) reported a fourth-quarter loss of $1.2 billion, or $1.49 per share. The company cited restructuring charges and weak global demand for aluminum for the losses. Sales fell to $5.7 billion from $7 billion. Alcoa is cutting 15,000 jobs, curbing more production, and slashing its capital budget. In electronic trading, AA was off more than 1%.

Lexmark International Inc. (LXK) warned that fourth-quarter operating results would be weaker than expected due to a deteriorating global economic environment. The company now expects a 17% year-over-year decline in fourth-quarter revenue, compared to prior guidance for a decline in the low to mid-teens. Quarterly earnings are now seen at 19 to 24 cents per share, including restructuring charges of 52 cents per share and a tax benefit of 30 cents per share. Excluding items, LXK expects fourth-quarter earnings of between 71 and 76 cents.

Beleaguered insurance giant American International Group (AIG) is back in the headlines this morning after The Wall Street Journal reported that the company may be on the verge of selling one of its business lines. The Journal also noted that Gerry Pasciucco, the executive charged with managing the risks in the financial-products subsidiary, still faces substantial challenges, including the further weakening in markets.

Finally, Merrill Lynch changed its ratings on several consumer products firms this morning. The brokerage firm upgraded Alberto-Culver (ACV) to “buy” from “neutral” and Kimberly-Clark (KMB) to “buy” from “underperform,” while downgrading Energizer Holdings (ENR) to “underperform” from “buy” and Newell Rubbermaid (NWL) to “neutral” from “buy.” Merrill said it sees both KMB and ACV as higher-quality names, downgraded ENR due to valuation, and indicated that it doesn’t know when sales at NWL will recover.

Earnings Preview

Today, Infosys (INFY) and InSteel Industries (IIIN) are slated to step into the earnings confessional.

Economic Calendar

The economic calendar finally kicks into gear today, with the release of December’s Treasury Budget. On Wednesday, the usual crude inventories data are slated for release, along with December’s retail sales numbers. The calendar heats up on Thursday, as the Street will be graced with the latest week’s initial jobless claims, December’s producer price index (PPI), and the core PPI. Friday rounds out the week with December’s consumer price index (CPI), the core CPI, and the University of Michigan Consumer Sentiment preliminary index.

Market Statistics

Equity option activity on the CBOE saw 1,147,569 call contracts traded on Monday, compared to 1,133,904 put contracts. The resultant single-session put/call ratio rebounded to 0.99, while the 21-day moving average rose to 0.74.

Overseas Trading

Overseas trading remains in negative territory this morning, as only 1 of the 11 foreign indices that we track is in positive territory. The cumulative average return on the collective stands at a loss of 2.01%. In Asian trading, regional indices finished broadly lower on Tuesday, with resource stocks leading the decline following Alcoa’s fourth-quarter loss. Metal stocks took the brunt of the decline, with Rio Tinto down 2.3% and BHP Billiton falling 1.3% in Sydney. Elsewhere, Alumina dropped 5.9% after the company said it would incur a charge of $26.8 million from changes to planned expenditures as part of growth plans at its joint venture with Alcoa.

In Japan, technology stocks bowed under pressure from Toshiba and Sony. Toshiba gave up 8.6% after national broadcaster NHK reported that the company was set to post its first operating loss in 7 years, amid worsening semiconductor operations. Meanwhile, Sony faced a similar situation, falling 8.9% as the Nikkei reported the company was likely to post a group operating loss of around Y100 billion for this fiscal year, its first operating loss in 14 years.

Across the pond in Europe, banking stocks lead a broad and deep regional decline, as investors continued to fret about the state of the financial sector. Specifically, Barclays retreated 11.5% and UBS fell 7.1%. Meanwhile, Banco Santander fell 4.5% in Madrid after The Wall Street Journal reported that Spanish prosecutors are investigating how the bank’s customers lost more than 2.3 billion Euros by investing with Bernard Madoff. In Paris, BNP Paribas fell 4.1% after La Tribune newspaper reported that the company is considering not buying all of Fortis’ insurance operations to appease minority shareholders of the Belgian-Dutch bank.

The U.S. Dollar Index (DX/Y) gained 0.48% to 83.15 on Monday, as the euro was pressured lower by news that Standard & Poor’s may lower Spain’s AAA bond rating. Further pressuring the euro lower was speculation that the European Central Bank could cut interest rates at its meeting later this week. Against this backdrop, the euro fell to trade at $1.3373, down from its late Friday pride of $1.3452. Meanwhile, the dollar declined to 89.06 yen from 90.42 on Friday.

The futures contract on the 30-year bond (US/1 – 134′26) rose 1-22/32 on Monday, as Treasuries prices headed higher, sending yields lower once again. Prices fell early in trading, as the equities markets headed lower due to poor expectations for a fresh quarter of corporate earnings. Meanwhile, fixed-income investors shifted their attention to corporate and mortgage-backed securities from government-issued debt.

Commodity Corner

Strength in the dollar yesterday applied pressure to gold futures, which declined in step with crude oil. The greenback was boosted by speculation that the European Central Bank will slash interest rates in its meeting this week, and the U.S. currency’s rally dented demand for the malleable metal. February-dated gold wrapped up the session on a deficit of $34, or 4%, at $821 per ounce.

Crude oil joined stocks in their downward spiral on Monday, extending its losses to a fifth consecutive session. Black gold came under pressure as investors continued to dwell on Friday’s dismal employment data from the Labor Department, and as the U.S. dollar flexed some muscle versus the euro. Additionally, at least 1 source of geopolitical tension was removed from the equation, as the natural gas dispute between Russia and Ukraine ended after nearly a week. By the close on Monday, crude oil for February delivery gave up $3.24, or 7.9%, to finish at $37.59 per barrel.

U.S. stock futures are trading mixed in comparison to fair value this morning, indicative of an uncertain open later this morning. Traders are anxious ahead of a key earnings report out of aluminum manufacturer Alcoa (AA), as expectations mount for what could be a gloomy fourth-quarter earnings season. In other equity news, Citigroup (C) and Morgan Stanley (MS) made headlines following reports that the duo may be poised to merge their brokerage operations. Finally, Micron Technology (MU) won a patent lawsuit against Rambus (RMBS) and is looking to apply the ruling in other cases.

Checking in on currencies and commodities, the U.S. Dollar Index has rebounded 0.28% to trade at 82.90 ahead of the open this morning. The strength in the greenback is weighing on gold, as the front-month contract has lost $10.10 an ounce to hover near $844.50 an ounce in London. Finally, crude oil futures are being pummeled this morning due to a weakening global economy. At last check, the February contract had plunged 4.6% to $38.95 per barrel.

Aluminum manufacturing giant Alcoa (AA) is slated to kick off the fourth-quarter earnings season later this morning. Currently, analysts are expecting a profit of 7 cents per share, down sharply from last year’s earnings of 36 cents per share in the same quarter. Historically, AA has not performed very well in the earnings confessional, missing analyst expectations 3 out of the past 4 reporting periods, with an average downside surprise of 6.46%. Traders are already on edge with AA, after the company announced plans last week to cut 13% of its global workforce, cut output, and freeze salaries to conserve cash in the current economic downturn.

In the financial sector, Citigroup (C) and Morgan Stanley (MS) could garner quite a bit of attention after reports that the duo could merge their retail brokerage operations. Citi may receive $2.7 billion for 51% of Smith Barney, according to The Financial Times, which could allow the company to take a $6 billion write-up on the value of the division. Meanwhile, Citi’s board is backing CEO Vikram Pandit, The Wall Street Journal reported.

Finally, Micron Technology (MU) said that it believes a recent federal court ruling that Rambus (RMBS) can’t enforce its patents against Micron is likely applicable to another pending case in California. Micron said it plans to file a motion with the California court seeking a ruling of unenforceability based on the Delaware court’s decision. The company is also reviewing the decision to determine its potential impact.

Earnings Preview

The earnings calendar starts off the week with a report from Alcoa Inc. (AA), kicking off the earnings season. A. Schulman (SHLM), Charles Schwab (SCHW), and Zep, Inc. (ZEP) are also slated to step into the earnings confessional

Economic Calendar

The economic calendar starts off the week on Tuesday, with December’s Treasury Budget. On Wednesday, the usual crude inventories data are slated for release, along with December’s retail sales numbers. The calendar heats up on Thursday, as the Street will be graced with the latest week’s initial jobless claims, December’s producer price index (PPI), and the core PPI. Friday rounds out the week with December’s consumer price index (CPI), the core CPI, and the University of Michigan Consumer Sentiment preliminary index.

Market Statistics

Equity option activity on the CBOE saw 1,119,989 call contracts traded on Friday, compared to 967,634 put contracts. The resultant single-session put/call ratio dropped to 0.86, while the 21-day moving average held at 0.73.

Overseas Trading

Overseas trading is starting the week off on the wrong foot, as none of the 11 foreign indices that we track is in positive territory. The cumulative average return on the collective stands at a loss of 1.15%. In Asian trading, regional indices were led lower by resource and airline stocks, as weak economic data and a poor corporate earnings outlooks in the U.S. weighed on investor confidence. Hong Kong stocks dropped for a fifth straight session, as Aluminum Corp. of China was punished ahead of Alcoa’s earnings report. Elsewhere, China Eastern Airlines plunged 7.1% in Hong Kong after it said it incurred unaudited fair value losses of 6.2 billion yuan on its fuel hedging contracts as of Dec. 31. Japanese markets were closed for a holiday.

Across the pond in Europe, shares have entered their fourth straight session of losses, as concerns over the global economy have sent oil stocks sharply lower. In the U.K., BP PLC shares fell 1.5%, while Repsol slipped 1.1%, as both extended Friday’s losses following dismal U.S. jobs data. Elsewhere, Swiss drugmaker Roche fell 2.4% after the Financial Times reported that the company is preparing a new bid, of $95 per share, for Genentech. Roche previously offered $89 per share for the 44% of Genentech that it does not already own, but was rejected. Finally, UBS fell 5.7% when the SonntagsZeitung newspaper reported that the firm may report a fourth-quarter loss of around $7.2 billion.

The U.S. Dollar Index (DX/Y) gained 1.3% to 82.56 on Friday, after the December jobs data proved not to as dismal as many investors had expected. The Labor Department said that the U.S. economy lost 524,000 jobs in December, and while the unemployment rate rose to 7.2%, many investors were already geared up for bad numbers after Wednesday’s dismal private-sector jobs survey. Against this backdrop, the euro fell to trade at $1.3422, but the greenback lost ground against its Japanese rival. The dollar declined to 90.40 yen from 91.09 on Thursday.

The futures contract on the 30-year bond (US/1 – 133′04) rose 4/32 on Friday, as Treasurys prices headed higher, sending yields lower once again. Short-term bonds led the rally, as economic fears built following the Labor Department’s report on December nonfarm payrolls. Additionally, losses in U.S. stocks pressured investors to look to government debt as a safe haven.

Commodity Corner

February gold advanced 50 cents, or 0.06%, ending Friday’s session at $855 an ounce. However, the yellow metal logged its first weekly loss in 5 weeks, finishing 2.8% lower than the previous Friday’s close. The safe haven appeal of gold increased amid the Labor Department’s unemployment report, though a stronger dollar kept gains in check.

In the wake of Friday’s dismal unemployment data, oil prices dipped below $40 per barrel for the first time in 2009. Black gold’s loss was merely an extension of its recent downturn, with downbeat economic news and supply surpluses overshadowing escalating tensions in the Middle East, as well as natural gas disputes between Russia and Ukraine. As a result of crude’s descent, Deutsche Bank lowered its forecast for oil prices to $45 from $55 per barrel for the first quarter, and slashed its annual average oil price for 2009 to $45 from $47.50 per barrel.

After hitting an intraday nadir of $39.38, light, sweet crude for February delivery fell 87 cents, or 2.09%, to settle at $40.83 per barrel. Elsewhere, gasoline futures added 2.4 cents to dock at $1.1126 per gallon, while February-dated natural gas fell 5.3 cents to $5.53 per 1,000 cubic feet.

U.S. stock futures are trading solidly below fair value this morning, indicative of a potentially negative start to the regular session of trading. Investors remain quite skittish ahead of today’s December unemployment rate and the nonfarm payrolls report, which is expected to show that the U.S. economy lost 500,000 jobs during the month. In equity news, Chevron Corp. (CVX) and Coach Inc. (COH) both warned that quarterly earnings would fall significantly short of expectations. Meanwhile, Schlumberger Ltd. (SBL) joined the parade of corporate layoffs, announcing plans to shed about 5% of its North American workforce.

Checking in on currencies and commodities, the U.S. Dollar Index is trading flat at 81.47 as currency traders are playing it close to the vest ahead of this morning’s December jobs data. Gold futures are trading cautiously higher in London trading, with the front-month contract rising $4 to $858.60 an ounce. Finally, crude oil futures are extending recent losses due to expectations for continued job losses in the world’s largest consumer of petroleum products. In electronic trading, the February contract is off 1.37% at $41.11 per barrel.

After Thursday’s closing bell, Chevron Corp. (CVX:  sentiment, chart, options) warned that its fourth-quarter earnings will likely be “significantly lower” than the quarter prior. As part of its mid-quarter update, CVX blamed the expected shortfall on the recent plunge in crude oil and natural gas prices. The company expects this sharp drop in prices to cut deeply into earnings from the production end of its business. Ahead of the open, CVX shares were off about 1%.

Specialty retailer Coach Inc. (COH:  sentiment, chart, options) issued its own earnings warning this morning, as the company said that it will fall short of its second-quarter guidance due to poor holiday sales. The handbag and accessories maker said it expects a profit of about 67 cents per share for the quarter, well shy of prior expectations for earnings of 77 cents per share. COH also stated that second-quarter sales fell 2% to $960 million from $978 million last year. The company had forecast second-quarter sales of about $1.05 billion.

Finally, Schlumberger Ltd. (SLB:  sentiment, chart, options) said that it plans to lay off about 1,000 workers in North America, or about 5% of its workforce in the region. The oil services specialist is also expected to reduce workers in other parts of the world, but media reports have yet to determine the impact. Furthermore, rival Halliburton Corp. (HAL:  sentiment, chart, options) will also reportedly begin to cut back its workforce, but details are not yet available.

Earnings Preview

The earnings calendar ends the week on a light note, as only ZZ Inc. (AZZ) and KB Home (KBH) are slated to report earnings today. Looking ahead to Monday, Charles Schwab (SCHW) and Alcoa (AA) are on tap to release their quarterly reports.

Economic Calendar

The economic calendar ends the week with a bang, as December’s nonfarm payrolls, the unemployment rate, average workweek figures, and hourly earnings along with the November wholesale inventories will wash over Wall Street today.

Market Statistics

Equity option activity on the CBOE saw 617,067 call contracts traded on Thursday, compared to 537,881 put contracts. The resultant single-session put/call ratio dropped to 0.87, while the 21-day moving average rose to 0.73.

Overseas Trading

Overseas trading remains troubled this morning, as just 3 of the 11 foreign indices that we track are in positive territory. The cumulative average return on the collective stands at a loss of 0.35%. In Asia, traders sent regional indices broadly lower on expectations for a poor showing in today’s U.S. employment report. In South Korea, the central bank cut interest rates to a record low of 2.5% and warned that the economy likely contracted in the fourth quarter.

In Japan, Nissan Motor plunged 5% after the company announced that it would cut 1,200 jobs in the U.K. due to slowing consumer demand. Elsewhere, Satyam Computer Services plunged 46% in India, extending the stock’s fire sale for a second straight session. Investors abandoned the equity following reports that the software giant may be strapped for cash and that some clients are reviewing contracts.

Across the pond in Europe, stocks traded modestly lower ahead of key economic data out of the U.S. Among story stocks, France’s Natixis dropped 8.9% in Paris after Les Echos reported that the investment banking group could report a loss of between 1.5 billion euros and 2 billion euros for 2008. Meanwhile, Nestle dropped 2% after J.P. Morgan cut its rating to “underweight” from “neutral,” and shares of Alcatel-Lucent slipped fell 2.5% when Morgan Stanley downgraded the equity to “equalweight” from “overweight.”

The U.S. Dollar Index (DX/Y) dropped 0.9% to 81.57 on Thursday, after poor economic data and warnings about double-digit U.S. unemployment from President-elect Barack Obama pressured the greenback lower against its major foreign rivals. Additionally, support for the dollar eroded further after the Bank of England cut its key interest rate by 50 basis points to 1.5% – its lowest since the bank was established in 1694. Against this backdrop, the euro rose to $1.37 while the dollar fell to 81.53 yen.

The futures contract on the 30-year bond (US/1 – 133) rose 10/32 on Thursday, as Treasurys maintained their early gains, pushing yields lower, despite a late rally in the equities market. Investors were unable to shake news that weekly initial jobless claims rose to their highest level since November 1982. However, gains in the bond market were limited, as the Treasury Department sold $16 billion in 10-year notes.

Commodity Corner

Increasingly unpleasant economic news proved to be a boon for gold futures yesterday. The precious metal caught a safe-haven lift on Thursday, while the U.S. dollar backtracked against its major foreign rivals. Gold for February delivery ended the day on a gain of $12.80, or 1.52%, at $854.50 per ounce.

Crude futures extended their losing streak to a third consecutive session, as economic concerns returned to the forefront. Anxieties were heightened not only by the Thursday’s poorly received jobless report, but also by Obama’s warning that double-digit unemployment could be on the horizon. By the close, February-dated crude oil gave up 93 cents, or 2.18%, to settle at $41.70 per barrel.