Learn the trade here. Make it on tradeMONSTER

Options Trading News

June 19, 2013  Wed 7:12 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Equities are little-changed this morning after a strong close yesterday as investors brace for the Federal Reserve's announcement at 2 p.m. ET.

Most European indexes are fractionally lower and near their lows of the session. Asian markets were mixed in the overnight session as Japan's Nikkei gained almost 2 percent but China fell about 1 percent.

The S&P 500 peaked at 1687 on May 22, only to retreat as investors worried the Fed would reduce monetary stimulus measures. It found support earlier this month at its 50-day moving average and has now been muscling higher since. The index climbed steadily yesterday, ending the session up 0.78 percent.

Perhaps more importantly, its 10-day moving average is now climbing for the first time this month--suggesting that short-term momentum is turning bullish again.

Our proprietary researchLAB market scanner also shows outperformance over the last week in economically sensitive sectors such as energy, industrials, and consumer-discretionary stocks. That indicates that investors expect further economic growth later this year.

After the Fed today, tomorrow will be the week's busiest session of economic releases. It starts early in the morning with Chinese manufacturing numbers, European service-sector data, and then initial jobless claims in the United States.

There is very little volatility in foreign-exchange or commodity markets so far today. Oil, copper, the euro, and Australian dollar are fractionally higher. But the Japanese yen, which tends to move in the opposite direction as stocks, is also up slightly.

In company-specific news, FedEx is roughly flat after reporting better-than-expected profit but revenue that lagged estimates. Adobe Systems is set to rally 6 percent as customers embrace its new online revenue model, resulting in strong quarterly results.

Dell could also be active after billionaire investor Carl Icahn increased his stake in the computer maker and urged the company to buy back shares rather than accept a takeover by led by founder Michael Dell.
Share this article with your friends


Related Stories

SPX

Stocks higher as earnings flow

April 15, 2014

S&P 500 futures are up about 0.3 percent. Europe is fractionally lower but has been gaining as New York's open approaches. Asia was mixed overnight, with Japan higher and China lower.

SPX

Intel, Yahoo, inflation on docket

April 15, 2014

Today's calendar includes a variety of economic headlines and corporate results, including those of Intel and Yahoo.

SPX

Stocks bounce on Citigroup results

April 14, 2014

S&P futures are up more than 0.5 percent after previously being little-changed, while European markets have reversed earlier losses and are now fractionally higher.

SPX

Citigroup, retail data in short week

April 14, 2014

The calendar for this holiday-shortened week is packed with corporate earnings, plus some important economic events.

SPX

Stocks under pressure after selloff

April 11, 2014

S&P 500 futures are down almost 0.5 percent, while most of Europe is off almost 2 percent. Asia was broadly lower overnight, led by a 2 percent drop in Tokyo.

Premium Services

Education & Strategy

Using emerging markets as a hedge

I spend lots of time and energy pondering ways to hedge the market. Right now my instrument of choice is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER