OptionsHouse

Options Trading News

December 17, 2013  Tue 7:12 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are inching higher again this morning after bouncing at a key level yesterday.

S&P 500 futures are up about 0.1 percent. European indexes are down fractionally but near their highs of the session as New York's opening bell approaches. Asia was mostly higher overnight after the strong close in the United States yesterday. The one exception was China, which fell for a second consecutive session amid concerns of weakening economic growth.

The S&P 500 rose 0.6 percent yesterday after bouncing at the key 1772 level, and at one point was up almost a full percentage point. It's been climbing steadily all year as the economy improves and money shifts from bonds to equities. Attention now focuses on the Federal Reserve's policy announcement tomorrow afternoon, with some forecasters expecting the central bank to begin reducing monetary stimulus. While such a move would be bearish in theory, it has been anticipated for months and may not have a huge impact if it occurs.

Today's calendar features the consumer-price index and the trade balance at 8:30 a.m. ET and the NAHB housing market index at 10 a.m. The housing market index is most likely to affect market sentiment. Jabil Circuit and VeriFone Systems report earnings this afternoon as well. Germany's Zew survey of business confidence already came in stronger than expected with its highest reading in 6-1/2 years.

Our researchLAB market scanner shows risk appetite increasing in the last week as small caps and international stocks outperform. Consumer discretionary stocks, industrials, and materials have also fared well, while conservative sectors like health care, consumer staples, and utilities have lagged.
http://www.optionmonster.com/researchlab/

In company-specific news, Frontier Communications is indicated higher by 18 percent after agreeing to purchase AT&T's wireline operations in Connecticut for $2 billion. KKR Financial is up 29 percent after accepting a $2.6 billion stock buyout by KKR. Drug developer Targacept is down 25 percent after abandoning a potential schizophrenia treatment.

Commodities and currencies are somewhat bearish despite the gains in equity prices. Oil is lower fractionally, and natural gas is off 1 percent. Gold and silver are both down almost a full percentage point, while copper is only falling slightly. Agricultural products are mostly lower. The euro is down modestly, and the safe-haven Japanese yen is posting small gains across the board.
Share this article with your friends


Related Stories

SPX

ADP payrolls lead busy calendar

September 2, 2015

ADP's report is due at 8:15 a.m. ET and is expected to show the creation of 203,000 jobs in August, up from the a gain of one month earlier.

SPX

Momentum sellers hammer market

September 1, 2015

S&P 500 futures have plunged 1.8 percent but have been trying to rebound in the last two hours. Europe is down 2 percent while Tokyo cratered almost 4 percent overnight.

SPX

ISM manufacturing leads agenda

September 1, 2015

The Institute for Supply Management's manufacturing index at 10 a.m. ET is the main item. Economists forecast a reading of 52.6, down from 52.7 in July.

SPX

Stocks lower following big bounce

August 31, 2015

S&P 500 futures are down 0.6 percent but have cut their losses in half. Most of Europe has fallen about half a percent. Asia was mixed, with Tokyo and Singapore down about 1 percent.

SPX

Chicago PMI kicks off busy week

August 31, 2015

Today's main event is the Chicago Purchasing Managers Index at 9:45 a.m. ET. The Dallas branch of the Federal Reserve follows with its regional index at 10:30 a.m. ET.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Options Academy: On Options Strategies in General

Before we hop into the different option strategies, I have a few thoughts for you to remember concerning the strategies and our use of them.

View more education articles »