Options Trading News

October 28, 2010  Thu 7:19 AM CT


U.S. stock index futures are moving higher this morning after a mixed session in Asia and a stronger start in Europe.

One notable event to watch overseas is the larger-than-expected hit to Santander's profits on new Spanish banking rules. The rule change required the Eurozone's largest bank to take early recognition of bad loans, a charge of 472 million euros, and financial stocks in Europe were weaker as a result.

The dollar flipped back down overnight, reversing much of yesterday's gains and lifting commodities slightly. The inverse correlation between stocks and the dollar has reasserted itself this week.

SKXIn U.S. equities news, Skechers missed broadly in its earnings report last night, sending shares down nearly 13 percent. At the other end of the spectrum, Las Vegas Sands blew past expectations on the upside and is trading up more than 11 percent in the pre-market. The strength in the shares reflects very strong profit growth in Macau and its new casino in Singapore.

Visa's shares traded lower by more than 2 percent on an essentially in-line report yesterday after the close. Allstate fell by more than 4 percent last night on weaker-than-expected core earnings.

iRobot broadly exceeded EPS estimates and raised its full-year earnings outlook, sending the stock higher by over 9 percent last night.

Sourcefire looked to be the disaster du jour after the close yesterday. The company beat estimates in the reported quarter but lowered guidance sharply, sending its stock down nearly 20 percent.

Teradyne was another example of a stock beating current estimates but hitting a wall on guidance. It beat EPS forecasts by $0.03 for the third quarter but cut fouth-quarter guidance to as low as low as $0.21, down from expectations of $0.59 . The stock is trading lower in the pre-market by over 10 percent.

Symantec beat on all metrics when it reported last night, lifting its stock by more than 5 percent this morning.

Colgate results are just crossing at the time of this writing. The company reported in-line EPS for the quarter but was lighter on revenue, sending its stock down more than 1 percent.

A few other names reporting today include AutoNation, BMC Software, Chicago Mercantile Exchange, Expedia, First Solar, KLA-Tencor, and Sunoco. Tomorrow we will hear from Aon, Cigna, Chevron, Merck, and Weyerhaeuser.

(Chart courtesy of tradeMONSTER)

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