tradeMONSTER: Trade free for 90 days

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

Stocks rebound before Christmas

December 22, 2014

S&P 500 futures are up 0.2 percent, while most of Europe advanced more than half a percent. Asia was broadly higher overnight, led by gains of more than 1 percent in Mumbai and Hong Kong.

SPX

Handful of events on holiday week

December 22, 2014

The only event scheduled for today is existing home sales for November at 10 a.m. ET. The next two days are more active than usual as the Chrismtmas holiday pushes several events forward.

SPX

Cramer: Tune out Fed naysayers

December 19, 2014

When we have inflation, the data-dependent Fed will switch. Until then, what's the point? Promote havoc? Slow down growth to make it so the hiring binge is over?

SPX

Stocks inch higher following rallies

December 19, 2014

S&P 500 futures are up 0.2 percent but below their highs earlier in the morning. Asia surged overnight, led by gains of about 2 percent in Tokyo and Shanghai. Oil is holding its ground as well.

SPX

Earnings reports fill quiet calendar

December 19, 2014

The only items today are quarterly results from CarMax, Carnival, and BlackBerry. Several events are packed into Tuesday and Wednesday because of next week's Christmas holiday.

tradeMONSTER: Trade free for 90 days

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER