PMC Sierra (PMCS), a Santa Clara, CA chipmaker, is off 15 cents to $7.36 and options volume is 32.5X the recent average daily, driven by apparent Nov 7.5 call writers. 13.4K traded. The top trade is 1795 on the 80 cent bid and was part of a sweep of 4900 contracts. Implied volatility is down about 4 percent to 44. No equity blocks traded. Earnings due July 22, after market.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Stocks are indicated modestly lower following two days of gains and a mixed round of earnings news Wednesday. Thirty minutes before the opening bell on Wall Street, stock index futures hint at a possible 20 point early loss for the Dow Jones Industrial Average. The industrial average has gained 230 points so far this week.

However, Dow component Pfizer (PFE) is down 2.5 percent after the pharmaceutical giant reported quarterly profits of 49 cents per share, which was a penny shy of analyst estimates. Time Warner (TWX), MetLife (MET), and Wal-Green’s (WAG) are also lower on earnings. News Corp. (NWSA), owner of the Wall Street Journal, jumped 5 percent after reporting a 25-cent per share profit, which beat Street estimate by a nickel.

In economic news, ADP reports that 22,000 private sector jobs were lost in January, which was better than the 30,000 loss economists had predicted. The report comes two days ahead of key jobs data. Economists expect Friday’s report to show the economy adding 13,000 jobs in the first month of 2010.

The ISM Services Index is due out 10:00 a.m. eastern time. Economists expect the gauge of economic activity outside of manufacturing to improve to 51 for January, up from 49.8 the month before.

Bonds are lower on the better-than-expected jobs numbers. The benchmark ten-year Treasury is down a few ticks and now yields 3.67 percent

The dollar added .44 to 90.80 against the yen. The euro edged down .0019 to 1.3942 against the buck.

After gaining almost $5 over the past two days, crude oil is off 33 cents to $76.90 a barrel ahead of weekly inventory data at 10:30 eastern time. Gold lost $4.8 to $1113.20 an ounce.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Stocks bounced around in morning trading, but the Dow Jones Industrial Average has battled back and is holding modest gains midday.

Stock index futures rallied before the stock exchanges opened after the Labor Department reported that the US economy lost 345,000 jobs in May. The number was significantly better than the 520,000 loss economists had expected.

However, investors sold into the early strength, as the news sparked a sharp rise in bond yields and a rally the dollar, which also sent crude oil and gold prices sharply lower. After hitting a high of $70 in early trading, crude fell into the red shortly after the payroll data.

Another reversal in mid-morning trading helped lift the equity market and the situation had stabilized by midday. Crude is back to unchanged at $68.80. Gold is still reeling, down $21.40 to $96.90 on dollar strength.

The buck is still holding higher ground, as higher bond yields attracts flow to the buck. The dollar is up 1.45 to 98.07 on the yen. The euro is taking a hit and dipped back below 1.40 against the greenback.

Meanwhile, the benchmark ten-year Treasury is down 23/32nd, but well off session lows. The yield on the ten-year is at 3.83 percent, up from 3.76 percent pre-payrolls, but down from six-month highs above 3.9 percent.

The CBOE Volatility Index (.VIX) is down .96 to 29.22 as stocks recover and event risk has passed. The Dow is up 40 points. Approximately 2.9 million puts and 3.9 million calls traded by Noon eastern time, a ratio of .75.

Puts are active in Genco Shipping (GNK) as the dry bulk shippers (DRYS, DSX, EGLE, EXM) show relative weakness. Shares are down .81 to $24.36 and 10,000 Oct 15 puts traded, including a purchase of 9,600 for $1.30.

Bearish trading is also being seen in PharMerica (PMC), the Currency Euro Trust (FXE) and the Market Vectors Coal Fund (KOL). Bullish trading picked up in a number of the metals companies, including Alcoa (AA), AK Steel (AKS), and Cliffs (CLF).

PharMerica (PMC) is down 74 cents to $17.66 and put buyers surfaced Friday, the day ater the company’s 2009 annual stockholder meeting. June 15 puts are leading the order, with 1,525 traded and 97 percent hitting ask-side, 2530 puts traded total. Zero calls. Impled volatility rallying to 42, up from about 34 the day before.