Learn the trade here. Make it on tradeMONSTER

Options Trading News

May 17, 2013  Fri 7:14 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are trying to rebound today after their first drop in a week yesterday.

S&P 500 futures rose about one-quarter of a percent, while Europe is posting similar gains. The main catalyst for the buyers appears to be coming from Asia, where Tokyo and Shanghai indexes rallied overnight amid positive Japanese economic data and signs that Chinese authorities will reduce economic regulations.

The moves follow a 0.5 percent drop by the S&P 500 yesterday as worries that the Federal Reserve will slow stimulus measures caused traders to take profits. It had posted record closing highs in the previous four sessions.

Today's gains in Asia are another example of an emerging pattern of growth overseas lifting sentiment, something that hasn't happened since about 2007. Evidence increasingly suggests that Japan's economy is recovering from decades of stagnation and China is continuing to expand. (For example, Japan's core machinery orders surged 14.2 percent in March, more than quadruple forecasts.) An official at Spain's largest bank also told CNBC that the country's economy will start to improve in the second half.

The main event on today's calendar in the United States is the University of Michigan's consumer-sentiment index at 9:55 a.m. ET. Fed Chairman Ben Bernanke will also make a speech tomorrow, which could make some traders nervous he will hint at an end to quantitative easing.

Commodities are reflecting a sense of risk appetite today as oil, copper, and agricultural foodstuffs advance while precious metals remain under pressure. Foreign-exchange trading is mixed, with the euro, Australian dollar, and Canadian dollar all lower against the greenback.

In company-specific news, Aruba Networks is indicated lower after its earnings and outlook missed expectations. Nordstrom fell after its results missed expectations, shortly after similar retailers Dillard's and Kohl's reported weak sales. Brocade Communications is down after its numbers lagged Wall Street estimates, although Chinese Internet company Sina beat expectations on the top and bottom lines. (See our researchLAB screener for more on Chinese Internet companies, which have emerged as new source of strength in the last month.)


Share this article with your friends


Related Stories

SPX

Cramer: Answering all the critics

October 24, 2014

Wednesday's session was infuriating. The moment this market went down big, it was a terrific opportunity to buy. But so many people offered excuses not to.

SPX

Futures pause after sharp rebound

October 24, 2014

U.S. equity futures are pointing to a lower open this morning after stocks rallied sharply yesterday, recovering losses from the previous session.

SPX

Earnings, housing data top docket

October 24, 2014

The earnings parade will continue to dominate the agenda today. New home sales at 10 a.m. ET are the only economic data scheduled for release.

SPX

Strong earnings push futures higher

October 23, 2014

Caterpillar is up more than 4 percent after blowing out estimates. General Motors, 3M, Southwest Airlines, Comcast, and Eli Lilly are higher as well.

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.

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