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 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