Learn the trade here. Make it on tradeMONSTER

Options Trading News

September 3, 2013  Tue 7:11 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are climbing today as the first of several economic reports showed improving growth in China and Europe. More numbers follow in the United States this morning.

S&P 500 futures rose almost 1 percent, while European indexes are down slightly following gains of 1.5 percent to 2 percent yesterday. Asian markets also remained strong in the overnight session, with Tokyo surging 3 percent and Shanghai up more than 1 percent.

Markets were closed in the United States yesterday in observance of Labor Day, but China and Europe both released purchasing managers indexes that showed better-than-expected manufacturing activity. Attention now turns to the Institute of Supply Management's key factory report at 10 a.m. ET, which significantly outpaced forecasts last month.

Sentiment took a hit last week after the U.S. claimed that Syria used chemical weapons against rebels, but the Obama Administration backed down after the British Parliament voted against war. The question will now be put before Congress and will probably linger for several days.

More data will flow during that time. Today also brings construction spending, followed by the Federal Reserve's Beige Book report of economic conditions tomorrow. Thursday is the busiest session, with German manufacturers orders, the European Central Bank's interest rate decision, retailer same-store sales and ADP's private-sector payroll report. It concludes with the key non-farm payrolls report on Friday morning. Most of those releases beat expectations last month.

The S&P 500 fell in August for only the second time in the last nine months and is now attempting to bounce at its 100-day moving average. The index has steadily trended higher since the beginning of 2013 as an improving economy attracts money that spent half a decade locked up in safe-haven bond funds.

Materials and technology have outperformed in the last month despite weakness in the broader market. The mix of price action also looks bullish this morning, with futures on the small-cap Russell index outpacing the S&P 500 before the opening bell.

Copper and silver are the big movers in the commodity market, gaining 1.5 percent and 3 percent respectively, after the strong economic reports. Oil is mixed, with West Texas Intermediate down half a percent but Brent crude up half a percent. That's potentially bullish for oil refiners. Agricultural products are up across the board.

Foreign-exchange markets are showing a similar bias toward global growth, with the Australian and Canadian dollar both climbing against the greenback. The Japanese yen is also showing signs of breaking out of a four-month consolidation period, which is potentially bullish. The euro is down slightly.

In company-specific news, Verizon Communications and Vodafone are both down slightly after the U.S. company officially agreed to buy VOD's minority stake in Verizon Wireless for $130 billion. Both had rallied last week on preliminary reports of the deal. Nokia is also soaring 44 percent after selling its mobile-phone operations to Microsoft for $7.2 billion.
Share this article with your friends


Related Stories

SPX

Stocks little-changed before Fed

September 17, 2014

S&P 500 futures are within a point of yesterday's close, and commodities are flat. Overseas markets are higher, led by gains of 1 percent in Italy, Hong Kong, and Korea.

SPX

Fed dominates economic docket

September 17, 2014

The central bank will issue its statement at 2 p.m. ET, followed by a press conference with chair Janet Yellen 30 minutes later.

SPX

Stocks inch lower before key events

September 16, 2014

S&P 500 futures are off 0.15 percent, while most of Europe is down about 0.4 percent. Asian markets fell sharply overnight, led by drops of 1.8 percent in Shanghai and 1.2 percent in Mumbai.

SPX

Inflation, German data on calendar

September 16, 2014

The first data comes early in the session, when Germany's Zew institute releases its economic-sentiment index. The Labor Department follows with its producer-price gauge for August at 8:30 a.m. ET.

SPX

Stocks slip before Fed, Scotland

September 15, 2014

Stocks are edging lower as investors prepare for the Federal Reserve's announcement and Scotland's independence vote later in the week.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER