Foot Locker also joined in the earnings parade this morning, posting fourth-quarter results of $87 million, or 56 cents per share, down from its year-ago profit of $95 million, or 61 cents per share. Fourth-quarter earnings include a non-cash impairment charge to write down long-lived assets for the company's U.S. store operations and expenses associated with closing unproductive stores, totaling $15 million after tax, or 10 cents a share. Sales slipped to $1.48 billion. The consensus on the Street was for a profit of 42 cents per share on revenue of $1.48 billion.

The shares of FL are currently poised to open lower this morning, potentially breaking through short-term support at the 11 level. The security has been in a steady downtrend under its 10-week and 20-week moving averages since May 2007.

Meanwhile, options players are extremely pessimistic, as the stock's Schaeffer's put/call open interest ratio stands at 3.35. This ratio is higher than 94% of all those taken during the past 52 weeks.