Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 11, 2012  Thu 7:16 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Investors are returning to stocks this morning after a four-day slide.

S&P 500 futures are climbing about 0.3 percent in early trading, about half as much as much as European indexes. Asian markets were mostly lower in the overnight session, with Japan and Shanghai both down by more than half a percent. Japanese machine orders for August were weaker than expected.

Stocks have been pulling back since last Friday, consolidating near multi-year highs after a summer rally. The gains have come despite economic weakness in China and Europe, driven by the fact that worst-case scenarios of financial contagion never took hold.

Late yesterday, for instance, Standard & Poor's downgraded Spain two notches to BBB-, one level above a junk rating. While initially bearish, International Monetary Fund Managing Director Christine Lagarde said deficit-ridden European countries should have more time to balance their books. Lagarde, as a former French finance minster, has major political influence in the region.

Investors will now look prepare for weekly jobless claims in the U.S. at 8:30 a.m. ET. Economists expect an increase to 375,000 from 367,000 last week. (See related story)

Currencies and commodities are also signaling a modest return of risk appetite. Oil rose by 1 percent, while economically sensitive copper advanced two-thirds of 1 percent. Silver and platinum are also marginally higher, while agricultural foodstuffs are mixed.

Currencies are painting a more clearly bullish picture, with all the traditional correlations at work. The euro, Australian dollar, and Canadian dollar all rose against the greenback, while the Japanese yen is lower across the board.

In company-specific news, Sprint Nextel is up 13 percent in the pre-market after the Wall Street Journal reported that the company is in advanced talks to be acquired by Japan's Softbank.

FedEx is also continuing to climb on bullish analyst comments, one day after the shipping giant rallied on plans to cut costs. FDX is an example of the kind of resilience demonstrated recently by equities because the weak economy forced management to lower guidance last month, but it has now returned to its previous trading levels.

Adtran a maker of networking gear, also rose about 3 percent in early trading after quarterly profit declined less than feared.
Share this article with your friends


Related Stories

SPX

Large spread hedges S&P 500

October 22, 2014

A put spread in the S&P 500 Index is looking at the possibility of a huge market decline by early next year. This is very likely what is known as a "tail-risk hedge."

SPX

Stocks pause after quick rebound

October 22, 2014

S&P 500 futures are essentially flat, while most of Europe is higher by less than half a percent. Most of Asia rallied overnight, led by a 2.6 percent surge in Tokyo.

SPX

Earnings, mortgage data on docket

October 22, 2014

Boeing, Dow Chemical, EMC, Ingersoll-Rand, General Dynamics, and Norfolk Southern announce their results before the opening bell.

SPX

Stocks higher on sentiment, earnings

October 21, 2014

S&P 500 futures are up 0.6 percent, while the Nasdaq advanced 0.9 percent after strong iPhone sales caused Apple to beat expectations. European markets advanced by 1.5 to 2.3 percent.

SPX

Agenda keeps focus on earnings

October 21, 2014

McDonald's, Coca-Cola, Lockheed Martin, Verizon Communications, United Technologies, and Harley Davidson release their numbers this morning.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER