Learn the trade here. Make it on tradeMONSTER

Options Trading News

May 30, 2013  Thu 7:15 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are higher today after the S&P 500 made a lower high yesterday.

Index futures are up more than one-third of a percent, following bigger gains in Europe. Asian markets were mostly lower in the overnight session, punctuated by a 5 percent drop in Tokyo.

The S&P 500 has been moving sideways for the last week after reversing from an all-time high on May 22. It has remained above a key consolidation level from earlier in the month and has been making higher lows, suggesting that the longer-term uptrend remains intact.

There have also been few signs of risk aversion setting in, according to our researchLAB market scanner. Conservative sectors such as utilities, consumer staples, and health care lagged the broader market during yesterday's 0.7 percent pullback in the SPX, while riskier allocations including energy and technology outperformed.

The selloff in Treasuries this month is a big part of the story because it's driven money out of "safe" investments while reducing the allure of dividend-paying stocks such as tobacco and telecoms. The big question now facing investors is whether bonds will continue to slide. If they do, even more cash could flow into equities.

Today's calendar of events brings initial jobless claims and a revised estimate for first-quarter economic growth, both at 8:30 a.m. ET. Earlier in the day, a gauge of European economic sentiment came in better than expected.

Foreign-exchange trading is mostly bullish today, with the euro higher and the Japanese yen lower across the board. Commodities are more mixed, as oil declines by half a percent and grains fall. Precious metals, however, are climbing once again.

In company-specific news, Clearwire is up more than 20 percent after Dish Network made an offer to buy the company, which had already received a takeover offer from Sprint Nextel. Discount retailer Big Lots fell more than 7 percent after issuing weak guidance. Avago Technologies, a maker of mobile chips, is up 5 percent after issuing strong guidance on revived smart-phone demand.
Share this article with your friends


Related Stories

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.

SPX

Agenda keeps focus on earnings

October 21, 2014

McDonald's, Coca-Cola, Lockheed Martin, Verizon Communications, United Technologies, and Harley Davidson release their numbers this morning.

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