OptionsHouse

Options Trading News

May 14, 2013  Tue 7:11 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are trying to set another record today after fighting back from losses earlier in the morning.

S&P 500 futures are fractionally higher after falling by more than one-tenth of a percent. Europe is also fighting its way back to positive after posting slightly larger declines. Asian markets were mostly negative overnight, led by a 1.1 percent drop in Shanghai.

The news flow from overseas is mixed today, with the bulls focusing on a strong Spanish bond auction and the bears on a weak German Zew financial-sentiment index. A report also showed industrial production rising in the Eurozone at a 1 percent pace in March, more than twice the 0.4 percent reading forecast by economists.

Investors will get more data from Europe tomorrow when France and Germany release economic-growth numbers. There are no potentially market-moving numbers in the United States today.

Sentiment has been positive most of the year as the labor market strengthens, credit conditions improve, and Europe mends its financial problems. In recent weeks, investors have been seeking value in depressed groups such as emerging markets and solar stocks. The National Bank of Greece, for instance, has gained more than 50 percent in the last week.

Financials have also been quietly gaining momentum and are the strongest major sector in the last month. Mortgage-bond insurers, another once-distressed niche, have led that advance. (See our researchLAB market screener for more.)

Currencies associated with global growth and risk appetite, such as the euro, Australian dollar, and Canadian dollar are weak today. Copper, which follows a similar sentiment, is down more than 2 percent and oil is lower by almost half a percent. Precious metals and are also negative, while agricultural products are mostly higher.

In company-specific news, video-game company Take-Two Interactive Software is up 8 percent in earlier trading after its earnings and revenue beat expectations. One investor who placed a bullish option trade in the name last week is poised to realize extreme profits on the move. Tesla Motors, already up 48 percent in the last week, is indicated higher by another 7 percent before the opening bell.
Share this article with your friends


Related Stories

SPX

Futures rebound before key data

May 1, 2015

S&P 500 futures are up 0.3 percent, while most European markets are closed for May Day. Hong Kong and Mumbai fell almost 1 percent each. Oil is holding its ground after rallying.

SPX

ISM, construction data lead agenda

May 1, 2015

The Institute for Supply Management's manufacturing index is the main item on today's agenda, followed by construction spending and consumer-sentiment data.

SPX

Futures lower following weak data

April 30, 2015

S&P 500 futures are lower by 0.1 percent and the Nasdaq 100 futures by about 0.3 percent. European indexes are off slightly, but Tokyo led Asia lower with a drop of almost 3 percent.

SPX

Jobless claims, income on docket

April 30, 2015

The U.S. data starts at 8:30 a.m. ET with initial jobless claims, personal income, and personal spending. Claims are expected to come in at 290,000, compared with 295,000 the previous week.

SPX

Futures pressured by weak GDP

April 29, 2015

First quarter gross domestic product missed estimates by a wide margin. Attention will now turn to the Fed's policy statement this afternoon.

OptionsHouse

Premium Services

Education & Strategy

Introduction to Synthetics

"Synthetics" is the name given to the relationship of two separate positions, constructed differently, that have the same exact risk and reward at each and every price level. They say that there is more than one way to skin a cat...well, there is always more than one way to create an option position...

View more education articles »