Caterpillar (CAT) announced at a conference yesterday that it expects record revenues and profits in 2012.  It sees 2012 at the upper end of the $8.00 – $10.00 guidance.  The company sees 2015 revenues in the range of $80 to $100 billion.  Consensus is $97.1 billion so the 2015 guidance was viewed as a slight negative.

Later this morning, we will get some new data that has the potential to spark some added trading action.  The S&P/Case-Shiller home price index for July (consensus +0.8%; prior +0.5%) will be released at 9:00 a.m. ET and will be followed by the Conference Board’s Consumer Confidence report for September (consensus 63.0; prior 60.6) at 10:00 a.m. ET.

The S&P 500 earnings yield as a percent of junk bond yields are almost 100%.  What this means that the S&P earnings yield and junk bond yields are roughly equivalent at about 6.6%.  Measured in this manner, stocks have not been this inexpensive relative to bonds for more than twenty years.

In options, there was a buyer of 3,000 Graftech International (GTI) Nov 10 calls.  This is 27x normal volume.

In Forest Laboratories (FRX), there was a buyer of 16,000 Jan 41 calls.   This was 38x normal volume.

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