Learn the trade here. Make it on tradeMONSTER

Options Trading News

July 12, 2013  Fri 7:12 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are fractionally higher this morning after closing at an all-time high yesterday.

Bank earnings are the main events today as JP Morgan and Wells Fargo announce quarterly results. JPM beat expectations and is trading modestly higher. WFC is down slightly after reporting minutes ago.

European markets rose by half a percent to a full percentage point. Asian markets were mostly lower in the overnight session as investors took profits after yesterday's big rally in China.

The S&P 500 ended yesterday at 1675. While that's 6 points above the previous closing high from May 21, it remains 12 percent below the previous intraday high of 1687 the next day. Investors must now decide whether to buy now with the index up almost 4 percent in the last two weeks or wait for a pullback.

The market has been trending strongly higher as the economy shows its best signs of life since the middle of the last decade and as years of pessimism toward equities lifts. Stocks remain relatively underowned by many investors, and we appear to be in the midst of a secular shift away from fixed income and into equities.

Our researchLAB analytics tool shows widespread buying across many industries, with consumer-discretionary stocks that benefit from higher incomes and a stronger economy leading the gains. More recently, materials, metals, and coal companies have been trying to rebound from long-term lows.

Homebuilders also surged yesterday on indications that borrowing costs will decline. They have been moving sideways most of the year after a huge rally in 2012.

Oil is also inching higher today, although copper and precious metals are pulling back after rallying yesterday. Currencies are painting a cautious picture as the euro declines and the Australian dollar falls by more than 1 percent.

In company-specific news, Aveo Pharmaceuticals is indicated to fall after receiving a subpoena from the Securities and Exchange Commission regarding the June 10 rejection of its tivozanib drug. Spreadtrum Communications also agreed to a $1.78 billion takeover offer, valuing the company for 17 percent over yesterday's close.
Share this article with your friends


Related Stories

SPX

Stocks rally on strong GDP growth

July 30, 2014

S&P 500 futures accelerate to the upside after second-quarter economic growth and ADP's payroll report beat estimates.

SPX

GDP, Fed, job data lead calendar

July 30, 2014

ADP's private-sector payrolls report for July gets the ball rolling at 8:15 a.m. ET, followed 15 minutes later by second-quarter GDP. The Fed announces its monetary policy at 2 p.m. ET.

SPX

Stocks inch higher ahead of data

July 29, 2014

S&P 500 futures are up more than 0.1 percent, and the Nasdaq is higher by almost 0.2 percent. Europe shows gains of about 0.5 percent, similar to those in Asian markets overnight.

SPX

Home prices, consumer data on tap

July 29, 2014

The Case-Shiller index of home prices, scheduled for release at 9 a.m. ET, is expected to show an increase of 10 percent in May. Consumer confidence follows an hour later.

SPX

Futures slip as market awaits news

July 28, 2014

S&P 500 futures are down about 0.1 percent, while Europe is mixed. Shanghai gained more than 2 percent ovenright after Chinese data showed industrial profit growth almost doubling in June.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER