Learn the trade here. Make it on tradeMONSTER

Options Trading News

April 19, 2013  Fri 7:15 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Fueled by gains overseas, equities are trying to rebound from their steepest drop so far this year.

S&P 500 futures are up about 0.3 percent after climbing by more than half a percentage point. European indexes have added more than 0.5 percent. The real strength came from China, where value hunters drove Shanghai and Hong Kong higher by more than 2 percent.

Investors must now decide whether it's time to put money to work in stocks or whether the recent losses are the start of a deeper correction. Recent data and corporate results suggest that economic activity is slowing, but large amounts of cash remain on the sidelines.

The S&P 500 closed below its 50-day moving average yesterday for the first time since December. But sectors associated with risk appetite such as transportation stocks fell less than the broader market, while energy shares rallied strongly. This suggests that some investors think conditions will improve before they worsen further.

Today's optimism in China partially resulted from a government official stating that growth may accelerate through the end of the third quarter. The Japanese yen also continued its recent declines, which tends to support global stock prices.

Corporate results from General Electric, Google, and Microsoft were mostly better than expected, though IBM and McDonald's missed estimates.

In addition to the steep losses for the yen, the euro, Australian dollar, and Canadian dollar are all gaining, which also supports risk appetite. Oil is up three-quarters of percent and precious metals are up more than a full percentage point, though copper and most agricultural products are weak.

Elsewhere in company-specific news, Vertex Pharmaceuticals is indicated to surge more than 50 percent after announcing positive mid-stake results for its cystic fibrosis drug. Dell may also be active amid reports that Blackstone will drop its proposed takeover bid.
Share this article with your friends


Related Stories

SPX

Jobless claims, earnings top docket

October 23, 2014

Jobless claims will be reported at 8:30 a.m. ET. The pre-market earnings lineup includes General Motors, 3M, Eli Lilly, Union Pacific, Celgene, Comcast, American Airlines, and Under Armour.

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.

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