OptionsHouse

Options Trading News

September 12, 2013  Thu 7:11 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are hovering today after climbing for several days straight.

S&P 500 futures are little-changed this morning, while most European indexes have rebounded from earlier losses and are now up slightly. Asia was mixed in the overnight session, with Shanghai up but Tokyo lower. The Japanese yen is gaining across the board and oil is higher on supply concerns.

Equities have rallied back to barely 1 percent below their previous all-time high in early August, after several economic reports showed that the world is now enjoying its strongest growth since before the 2008 crisis. Investors have been putting money to work broadly across the market, but our researchLAB scanner shows them focusing on cyclical stocks that benefit from an improving economy. Ocean shipping companies, steel makers, coal miners, and industrials in particular have outperformed in the last week.

Companies that benefit from a stronger consumer, such as casino operators, homebuilders, and snowmobile makers have also stood out.

Today's news may be less impressive, with Eurozone industrial production shrinking rather than growing as expected in July. Japanese machine orders and Australian employment also lagged forecasts. Attention now focuses on initial jobless claims in the United States at 8:30 a.m. ET, followed by the more-important retail sales and consumer sentiment tomorrow morning.

Investors are also concerned about how much the Federal Reserve will slow its program of bond buying and are focused on next Wednesday's monetary-policy announcement. Despite the worries, a 10-year Treasury bond auction went better than expected yesterday. A 30-year auction today could also provide clues about the future of interest rates.

The strong yen, triggered by Japan's weak machine orders, is casting a bearish shadow across foreign-exchange markets. The Australian dollar, which also follows sentiment toward the global economy, is down almost a full percentage point while the euro is edging lower. Copper, another bellwether for global growth, dropped more than 1 percent. Gold and silver shed about 2 percent, and agricultural foodstuffs are mostly negative.

Crude oil is the only major commodity trading higher, lifted almost 1 percent by a report that oil production will lag demand within nations in the Organization of Petroleum Exporting Countries (OPEC).

In company-specific news, Lululemon Athletica and Vera Bradley are down 8 percent and 9 percent respectively on weak guidance. Coal miners could also be active after the Obama administration issued stringent emission rules for new power plants.
Share this article with your friends


Related Stories

SPX

Stocks keep falling after GDP miss

January 30, 2015

S&P 500 futures are down 0.7 percent, while European indexes are fractionally lower. Asia closed mostly lower, led by drops of 1.5 percent to 2 percent in Mumbai and Shanghai.

SPX

GDP, MasterCard on busy calendar

January 30, 2015

The gross domestic product report, due at 8:30 a.m. ET, is especially important because it's the first estimate for the final three months of 2014.

SPX

Stocks trying to recover from selloff

January 29, 2015

S&P 500 futures were up 0.5 percent but are now up just slightly. Europe has also surrendered earlier gains. Japan and China both fell more than 1 percent overnight.

SPX

Jobless claims, earnings on docket

January 29, 2015

Initial unemployment filings, the first item on this side of the Atlantic, are expected to show a reading of 301,000, compared with 307,000 in the previous period.

SPX

Stocks rally on earnings before Fed

January 28, 2015

S&P 500 futures are up 0.4 percent, while strong earnings from Apple have lifted the Nasdaq 100 more than 1 percent. European indexes are modestly lower, and Asia was little-changed overnight.

OptionsHouse

Premium Services

Archived Webinar

Option Money Machine Winter Classic

Education & Strategy

The rolling technique

In the January 7th edition of Advantage Point, we initiated the purchase of a second week-out GOOGL 535 put at...

View more education articles »