Sticking with the earnings spotlight this morning, BJ Services (BJS: sentiment, chart, options) announced that its fourth-quarter net income fell 11% to $168.1 million, or 57 cents per share, from its year-ago profit of $189.4 million, or 64 cents per share. Revenue during the quarter climbed 15% to $1.53 billion. The company reported that hurricanes took a bite of 2 cents per share in the latest period. The consensus estimate for the 3-month period was for a profit of 55 cents per share on sales of $1.43 billion.

However, the company issued a warning for the first quarter. BJS now forecasts first-quarter earnings of 48-51 cents per share, which is well below the Street estimate for a profit of 56 cents per share.

Traders have shrugged off the quarterly warnings and have pushed the equity up 1.5% this morning on the positive fourth-quarter report. In fact, the shares are resting above former resistance at their declining 10-day and 20-day moving averages. However, the stock seems to be struggling with resistance in the 14 area. This region had capped the security's rally attempts during the past 3 weeks.

Heading into the report, investors shows a preference for calls. During the past 10 trading days, the International Securities Exchange has reported an average of 4.97 calls purchased to open for every 1 put purchased, indicating that hopes were on the rise heading into the event.