The bears finally put up a fight on Thursday just as the major averages were busting through “resistance” but we said we were not out of the woods yet. The S&P 500 was pummeled as the index suffered its worst single-session percentage loss for the month of November.
A disappointing earnings report from Dell (DELL, $14.81, down $1.06) is weighing on the futures this morning. The company reported earnings after the market closed Thursday and it wasn’t pretty…Dell said its 3Q earnings plunged 54% from a year earlier on lower-than-expected sales. The company continues to lose market share and needs to do more to diversify its business.
As you would expect, the futures are indicating a lower open this morning and the bulls will have their work cut out for them if they are to avoid a three-day losing streak. The November options expire today so there may be even more volatility today as traders square away their current positions and roll them out to the next month.
Ahead of the opening bell, Dow Jones futures are off by 58 while the S&P 500 futures are down 7. The Nasdaq 100 futures are also lower by 7. Looks like we are going to have a busy day…Current subscribers, check the Members Area for the trade updates this morning.