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

Manufacturing data starts week

September 2, 2014

Traders returning from the long holiday weekend will face several important headlines this week, including the ISM manufacturing index.

SPX

When rolling makes good sense

September 1, 2014

Unlike most other things that expire, option positions can be rolled to different time frames or strikes to adjust a trade. Here's why that is often worth considering.

SPX

Stocks drift higher into long weekend

August 29, 2014

S&P 500 futures are up about 0.25 percent and back near their highs from earlier in the week. European markets are fractionally higher, and Asia was mostly positive overnight.

SPX

Chicago PMI on tap before holiday

August 29, 2014

Today's agenda brings a handful of reports, but trading will probably be light ahead of the Labor Day weekend. Data on personal income and consumer sentiment will accompany the Chicago reading.

SPX

Stocks pull back on Ukraine worries

August 28, 2014

The decline follows news late yesterday that Russian armored troops had entered Ukraine and were fighting in support of pro-Moscow rebels.

Premium Services

Education & Strategy

It's all skewed up

Most new option traders know little about implied volatility, and learn the hard way. Today we want to help you...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER