Stocks are indicated lower after debt fears sent Europe benchmarks and the euro sharply lower Tuesday. Thirty minutes before the start of trading in New York, stock index futures indicate that the Dow Jones Industrial Average might lose more than 80 points at the open.

Benchmarks are broadly lower across Europe amid ongoing concerns about widening debt problems across the euro-zone. Although Greece agreed to an aid package Sunday, concerns are that the help is coming too late and that now Spain might need a rescue as well.

France’s CAC 40 Index is down 1.7 percent, Germany’s DAX lost 1.2 percent, and UK’s FTSE is off 1.3 percent. The euro tumbled another .0124 to 1.3066.

In the US, economic data comes into focus at 10:00 a.m. eastern time. Economists expect a report on Factory Orders to show a decline of .2 percent for March. Separately, a report on Pending Home Sales is expected to show an increase of 5 percent for March.

Bonds are up ahead of the data. The benchmark ten-year Treasury is up 3/32nd and yields 3.67 percent.

Action in the commodities market is mixed. While crude oil is down $1.59 to $84.40 a barrel, gold gained $7.60 to $1190.90 an ounce.

Among the stocks to watch, Dow components Merck (MRK) and Pfizer (PFE) are out with earnings. Merck is up 13 cents to $35.40 after reporting a quarterly profit of 83 cents per share, which beat Street estimates by 8 cents. Pfizer added 27 cents to $17.18 after posting 60 cents per share, which topped estimates by 7 cents.

Ann Taylor (ANN), Mastercard (MA), and McKesson (MCK) are also up on earnings. Beazer Homes (BZH), Vivus Pharmaceuticals (VVUS), and Rackspace (RAX) are seeing post-earnings weakness. Synovus (SNV) rose 2 percent after Citi upgraded the stock to Buy. Time Warner (TWX) might see action today ahead of earnings, due out tomorrow before the bell.

Some less actively traded names seeing bullish order flow: Exact Sciences (EXAS), Beazer Homes (BZH), BJs Wholesale (BJ) Bearish order flow: Maiden Holding (MHLD), PDL Biopharma (PDLI), Potlatch Holding (PCH) Post Earnings: Kroger (KR), Force Protection (FRPT) Pre-Earnings: Navistar (NAV) , J Crew (JCG) Ex-div.: Allstate (ALL), Wal-mart (WMT), Smith International (SII), ADP

Stocks are indicated modestly higher after the Labor Department’s latest payroll report showed an unexpected decline in the unemployment rate Friday morning. Thirty minutes before the opening bell on Wall Street, stock index futures hint at a modest early gain for the Dow Jones Industrial Average.

The Labor Department reports that the US economy lost 20,000 jobs in January, which was worse than the 14,000 increase in jobs economists had predicted. Making matters worse, December numbers were revised down to show a loss of 150,000, down from the -85,000 first reported.

However, after a 269-point plunge in the Dow Thursday, a bad report had been discounted and the data contained a few bright spots. The unemployment rate unexpectedly fell to 9.7 percent from 10 percent. Economists had expected the rate of unemployed to stay steady. Average hourly earnings rose .3 percent, and better than expectations of +.2 percent.

Stock index futures edged higher on the data and bonds gave back some of the big gains seen the day before. The benchmark ten-year Treasury is down 5/32nd and now yields 3.63 percent.

The dollar added .61 to 89.61 against the Japanese yen. Euro woes continue. The euro-zone currency is down another .0007 to 1.3719 against the buck.

Crude oil added .40 to $73.44 a barrel. Gold is steady at $1063 an ounce.

Among the stocks to watch, Mastercard (MA) might bounce back from post-earnings losses suffered yesterday after Wells Fargo upgraded the stock to Outperform from Market Perform. Beazer Homes (BZH) gained 2.7 percent on earnings news. Tyson (TSN) is also up on earnings. However, Leap Wireless (LEAP) fell 5 percent after JP Morgan downgraded the stock to Underweight. Aetna (AET) and Sunoco (SUN) are trading lower on earnings.


Source: Bloomberg.com

The homebuilders are seeing relative strength and options action Thursday morning after Lennar (LEN) reported a surprise 19-cent profit. Analysts were expecting a loss. SPDR Homebuilders Trust (XHB) is up 47 cents to $15.98 and XHB Jan 16, Feb 17, Mar 16 calls seeing interest. Also seeing some action in LEN Jan 14 calls, Jan 12 puts; DHI Jan 12.5 calls, Feb 12 calls, and May 10 puts; and BZH Jan 5 puts and calls.

Stocks are set to open higher on better-than-expected jobs data Friday. Thirty minutes before the opening bell on Wall Street, stock index futures hint at a possible 70 or 80 point early gain for the Dow Jones Industrial Average.

The US economy lost 247,000 jobs during the month of July, according to the latest statistics from the Labor Department. The decline was much less than the 443,000 in June (revised from 467,000) and also better the economist projections.

The unemployment rate edged down to 9.4 percent from 9.5 percent. Economists were looking for an increase to 9.6 percent. Meanwhile, average hourly earnings rose .2 percent, compared to expectations for a .1 percent.

Stock index futures rose on the data. Bonds sank. The benchmark ten-year Treasury is off almost a full point, pushing its yield back up to 3.88 percent.

The dollar rallied 1.17 to 96.55 against the Japanese yen. The euro slipped back towards 1.43 on the buck.

Crude oil is up 72 cents to $72.66 barrel. Gold is up $2.6 to $965.50 an ounce.

In stock news, AIG is up another 11 percent after the company reported a surprise profit that beat Street estimates by over $1 per share. CBS, NVida (NVDA), Crocs (CROX), and Beazer Homes (BZH) are set to gap higher on earnings as well. However, Ambak (ABK), Sequenom (SQNM), and PMI are seeing post-earnings weakness.

Some of the homebuilders are seeing bullish flow ahead of housing starts data due out next week–on options expiration Friday, to make things interesting. Hovnanian (HOV) is down a penny and the focus is on Jan (2010) calls at the 2.5 strike, with 2050 traded (10X expected) and almost all of the trades hitting at the offer. Beazer Homes (BZH) is up 7 cents to $1.71 and 2300 calls traded, or about 11X the normal. Like HOV, Jan 2.5 calls are the most actives, with buyers dominating the flow. Meanwhile, Standard Pacific (SPF) is down 7 cents to $1.89 and 2000 January 2. 5 calls traded, with about two third hitting ask-side. The volume in these three builders might be by one player, taking positions in out of the money calls and hoping that a big gain in at least one will produce a profit for the entire basket.

Beazer Homes (BZH) shares rose 6 cents to $1.76 and options volume jumped to 18X the normal levels Thursday. 11,000 calls traded, compared to only 10 puts. Most of the activity was concentrated in May 2.5 calls. More than 10,000 traded and nearly all of that volume hit ask-side of the bid-ask spread. In addition, open interest increased to 15,393 from 5,500 contracts, as some investors appeared to be buying to open new bullish positions on the homebuilder. Earnings due out early-May.

Attention turns to a busy economic calendar over the next five trading sessions and, after a 12 percent rally in the S&P 500 (SPX) the week before; investors will be watching the tape to see if the major averages can extend their massive gains.

Trading volume is likely to pick up from last week’s anemic pace. Reports on construction spending and the ISM Index of manufacturing activity are likely to guide the early trading Monday. Both reports are due out at 10:00 a.m. Eastern Time. Economists expect the construction report to show a .9 percent decline in October. The ISM manufacturing index is expected to edge down to 38 in November, down from 38.9 the month before.

The auto makers will be in focus with auto and truck sales figures due out during Tuesday’s trading session.

Attention then shifts to the grim employment situation. ADP provides a peek at the November jobs situation with its private sector report due out Wednesday morning before the bell. Productivity numbers, ISM Services Index and the Fed’s Beige Book are also slated for Wednesday.

Weekly jobless claims and a report on factory orders are due out Thursday. Then, investors will digest the monthly jobs data Friday, which is expected to show the US economy losing more than 300,000 jobs in November.

Among the other events worth watching this week, Fed Head Bernanke speaks with Dallas Fed Pres. Fisher to discuss the economic outlook Monday. Treasury Secretary Hank Paulson is also on the pulpit Monday, speaking about the financial markets. The Reserve Bank of Australia makes a rate cut announcement Tuesday. The SEC holds an open meeting Wednesday. The Bank of England is expected to cut rates Thursday.

Black Friday holiday sales and results from retailers will be scrutinized. Guess (GES), Staples (SPLS), and Sear Holdings (SHLD) are among the companies due to report results Tuesday. Collective Brands (PSS), Aeropostale (ARO), and Jo-Ann Stores (JAS) release results Wednesday.

The homebuilders will be in focus with earnings from Beazer Homes (BZH) Tuesday and Toll Brothers (TOL) Thursday.

Among the other stocks to watch, Starbucks (SBUX) holds an analyst confab, Merck (MRK) gives annual guidance, and Prudential (PRU) hosts an investors day Thursday. Merrill Lynch (MER) and Bank of America (BAC) hold a meeting to discuss their merger Friday. Hartford Financial (HIG) also holds a meeting Friday.

The technical action of the market will be an important factor as well. The five-day winning streak triggered a significant decline in risk perceptions, which encouraged some investors to move money back into the market. After hitting record highs of 80.86 on November 20, the CBOE Volatility Index (.VIX) suffered a record 25.94 points, or 32.1 percent, four-day decline. The plunge in the market’s “fear gauge” reflects a remarkable change in investor sentiment. It also sets up an important test during the next pullback: will it be viewed as an opportunity to add to long positions or trigger another mass exodus from the US equity market.