Learn the trade here. Make it on tradeMONSTER

Options Trading News

April 18, 2013  Thu 7:11 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Equities are rebounding today from another sharp drop yesterday.

S&P 500 futures are up about 0.3 percent, while most European indexes are posting slightly larger gains. Asian markets were mixed to lower overnight after yesterday's selloff in the United States.

The 1.4 percent pullback brought the S&P 500 down to its 50-day moving average for the first time this year and occurred just one week after the index touched a new all-time high above 1590. In addition to normal profit-taking, the selling has resulted from worries about slow growth in China and a mediocre start to the first-quarter earnings season.

Today's calendar returns attention to the broader economy, with initial jobless claims scheduled for 8:30 a.m. ET and the Philadelphia Federal Reserve's regional economic index at 10 a.m. ET. The main theme so far this earnings season appears to be weak revenue, something seen in the results of Verizon Communications, Intel, American Express, eBay, and PepsiCo.

Some technicians may also worry about slowing momentum in the broader market because the recent highs in the S&P 500 and Dow Jones Industrial Average occurred at the same time the Dow Jones Transportation Average and Russell 2000 small-cap index remained below earlier peaks. Transports and small caps had led the gains through mid-March.

Commodities are rallying after sharp drops in the last week. Oil is gaining some 1.4 percent, and precious metals are up 1 percent. Agricultural products are inching higher as well, but copper is down almost 1 percent.

Currencies are following a bullish pattern as well, along with the euro, Australian dollar and Canadian dollar all higher. The Japanese yen, which tends to move in the opposite direction as stocks and commodities, is down across the board.

In company-specific news, AXP's quarterly revenue totaled just $7.88 billion, well below the $8.03 billion consensus estimate, amid weak consumer spending. VZ missed estimates by a narrower margin. Morgan Stanley's top and bottom lines both beat forecasts thanks to growth in its wealth-management business. PEP is up about 1 percent after its earnings beat, but revenue was also light.
Share this article with your friends


Related Stories

SPX

Stocks consolidate after large gains

August 20, 2014

The S&P 500 has been rallying since it found support at its 100-day moving average earlier this month, and the benchmark index has risen in six of the last eight sessions.

SPX

Fed minutes, earnings on docket

August 20, 2014

Today's calendar includes minutes from the Federal Reserve's last meeting and several notable earnings reports.

SPX

Stocks continue bullish momentum

August 19, 2014

S&P 500 futures are up 0.15 percent, while most European markets are higher by about 0.5 percent. Asia was strong overnight, with Tokyo and Hong Kong each gaining more than 0.6 percent.

SPX

Housing data dominates calendar

August 19, 2014

Home Depot announces earnings before the opening bell and the Commerce Department will release July housing starts and building permits at 8:30 a.m. ET.

SPX

Nasdaq leads rebound as fears ease

August 18, 2014

S&P 500 futures are up half a percent, while most European indexes are higher by a full percentage point. Asia was mixed, with India's Sensex climbing 1 percent to new all-time high.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Repairing losers with ratio spreads

Last week we mentioned the "stock repair strategy." This week is a good time to follow up, given the action...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER