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

Factory orders, Beige Book on tap

September 3, 2014

The first headline is revised European gross domestic product early in the morning, followed by U.S. mortgage data and factor orders.

SPX

Stocks higher before ISM report

September 2, 2014

S&P 500 futures are up 0.1 percent. Indexes are also higher across the Atlantic but have halved their gains in the last-hour. Shanghai and Tokyo climbed more than 1 percent overnight in Asia.

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.

Premium Services

Education & Strategy

How to get the hedge you want

Hedging is a good idea. As I have said countless times, you insure your house and your car, but most...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER