OptionsHouse

Options Trading News

November 6, 2012  Tue 7:10 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
U.S. stocks are following Europe higher this morning as investors brace for the presidential election and commodities gain.

The S&P 500 is higher by more than one-quarter of a percent, compared with gains of more than half a percent in Germany, France and the U.K. This morning's strength also comes after the S&P 500 continued to hold above its 100-day moving average and the key 1400 level. That suggests the longer-term uptrend remains in effect despite weakness in the last month.

The economic backdrop is also supporting equities, with growing evidence that growth is accelerating on the Chinese mainland. Industries such as steel and coal have been recovering in the last month, and overnight Australia's central bank unexpectedly refused to lower interest rates again because of a stabilizing economy.

Commodities are reflecting that increased confidence as well. Oil, gold, and silver are all higher by more than half a percent, while copper gained by more than one-third of a percent. All the agricultural foodstuffs are broadly higher.

Foreign-exchange markets are mixed, with the U.S. dollar lower against most other currencies while the Japanese yen is stronger across the board. The real story, however, is the rally in the Australian dollar after those bullish comments by the country's central bank.

Despite gains in the broader market, most companies moving on their own news are lower. Express Scripts fell 13 percent after warning investors that analysts are too optimistic about its performance. Real-estate company Zillow also plunged 18 percent on weak revenue guidance.
Share this article with your friends


Related Stories

SPX

Futures pull back as traders wait

May 28, 2015

S&P 500 futures are off 0.2 percent, while most of Europe is down about half a percent. Shanghai was the big loser in Asia overnight, plunging 6.5 percent.

SPX

European, jobless data on docket

May 28, 2015

Several European numbers, including consumer confidence and industrial sentiment, are due today, along with weekly jobless claims for the United States.

SPX

Stocks try to rebound from drop

May 27, 2015

S&P 500 futures are up almost 0.1 percent after the index had its biggest drop in three weeks. European markets gained about 0.5 percent.

SPX

Mortgage data, Costco on docket

May 27, 2015

Weekly mortgage applications at 7 a.m. ET are the only data report. Michael Kors, Tiffany, Toll Brothers, and Cisco are scheduled to announce quarterly results.

SPX

Futures churn before key numbers

May 26, 2015

S&P 500 futures are off less than 0.1 percent, while indexes across the Atlantic were mixed. Asia continued to rally, led by a 2 percent gain in Shanghai.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Long synthetic call

Long and short Synthetic stock are two of the six basic synthetic positions that exist. Number three on our list is the Synthetic Long Call...

View more education articles »