OptionsHouse

Options Trading News

January 6, 2014  Mon 7:14 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are climbing today, attempting to bounce from a quick pullback last week.

S&P 500 futures are up more than 0.2 percent while Europe is led by gains of almost 1 percent in Italy and Spain. Asia was mostly weak in the overnight session. Tokyo fell more than 2 percent after being closed for the holiday and Shanghai posted a similar decline on weak economic data.

Purchasing managers indexes reflected slowing growth in China, while the European situation continued to show improvement. The results were similar with manufacturing numbers released last week. Attention will now focus on the Institute for Supply Management's non-manufacturing index at 10 a.m. ET.

The S&P 500 declined its first two sessions of 2014, but is still within 1 percent of its all-time high on New Year's Eve. The index has also managed to hold support at its 10-day moving average, suggesting that bullish momentum remains intact.

Equities have been rallying for the last year as cash comes off the sidelines and the economy improves. While most sectors have performed well, our researchLAB market scanner shows strength over the last week in 3-D printers, car-rental companies, airlines, and hospital operators. Gold and silver miners have also attempted to rebound from long-term selloffs. Select Chinese companies that trade in the United States have rallied as well.

The flow of catalysts will increase as this week progresses. Tomorrow afternoon brings earnings from Micron Technologies, the third-strongest member of the S&P 500 in the last year. Wednesday features ADP's monthly private-sector payroll report, minutes from the last Federal Reserve meeting, and quarterly results from Monsanto. The government's key non-farm payrolls report is on Friday morning, followed by a heavy earnings calendar next week.

In company-specific news, merger-and-acquisition activity continues to build. Men's Wearhouse and Jos. A Bank are both up more than 5 percent after MW raised its hostile takeover offer of JOSB to $57.50 a share from $55. Pacer International accepted a $335 million cash-and-stock takeover by XPO Logistics. Sirius XM Holding also rose 8 percent on news that Liberty Media wants to buy out minority shareholders. Goldman Sachs also added SolarCity to its "conviction buy" list, sending it up 6 percent.

Energy futures are higher, as Brent crude oil, and natural-gas climb almost 1 percent. Metals are weak, with silver down almost 1 percent and copper lower by half a percent. Agricultural products are modestly higher. Most currencies are little-changed.
Share this article with your friends


Related Stories

SPX

Stocks climb with gains overseas

March 30, 2015

S&P 500 futures are up half a percent, while most of Europe is up more than a full percentage point. Shanghai kicked off the move overnight with stimulus hopes and central-bank comments.

SPX

Busy calendar for shortened week

March 30, 2015

Attention will probably focus on Greece today after leaders in Athens promised to deliver a list of potential reforms needed for the debt-laden country to receive further aid.

SPX

Stocks drifting at bottom of range

March 27, 2015

S&P 500 futures are off 0.1 percent, while European markets are mostly higher. Asia was mixed overnight. Oil and metals are under pressure as the euro surrenders some of its recent gains.

SPX

Revised GDP, Yellen lead calendar

March 27, 2015

The final reading of fourth-quarter gross domestic product is due at 8:30 a.m. ET, and Federal Reserve Chair Janet Yellen is slated to deliver a speech at 3:45 p.m. ET.

SPX

Stocks fall amid Yemen airstrikes

March 26, 2015

S&P 500 futures are down 0.7 percent, while the Nasdaq remained weaker with a drop of 1 percent. European indexes slid 1-2 percent, and Asia was broadly lower overnight. Oil and the yen are surging.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Short Gamma

Last week, we talked about long Gamma. We said that long gamma is acquired by purchasing options and when you...

View more education articles »