OptionsHouse

Options Trading News

June 17, 2013  Mon 7:12 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are gaining this morning after making a higher low on Friday.

S&P 500 futures are up more than half a percent but have retreated from earlier levels, while European indexes are gaining more than a full percentage point. Perhaps most important was a rally of almost 3 percent in Tokyo as the Japanese yen showed signs of stabilizing.

The S&P 500 bounced at its 50-day moving average last week and closed Friday's session above the key 1523 level that was support earlier in the month. The price action suggests that there few sellers who want to exit stocks after the index held support above its previous all-time highs. There was some evidence in recent sessions that hedge funds were trying to drive equities lower, but now the bears appear to be in retreat.

The Federal Reserve's interest-rate decision on Wednesday afternoon is the main item on the calendar this week, though German economic sentiment, U.S. housing starts, and consumer prices will be released tomorrow morning. Today brings two minor releases: homebuilder sentiment and the New York Fed's Empire manufacturing index.

Attention will mainly center on how aggressively the Fed plans to scale back the pace of monetary easing, though investors have had more than a month to accustom themselves to the idea of a less accommodative Fed. The even bigger story now seems to be continued signs of U.S. economic recovery, demonstrated by last week's strong jobless claims and retail-sales data. Reports this morning also showed robust wage and export growth in Germany.

Commodities and currencies are surprisingly tepid given the move in stocks. Oil rose by half a percent but copper is down by a similar amount, while agricultural products and precious metals are weak. The euro is also modestly lower. The Japanese yen is down across the board and is back to a potentially important level against the U.S. dollar from February.

The gains, however, are smaller than one might expect given the big move in the Nikkei index. This suggests that equities are returning to favor on a secular basis, marking a contrast with the 2003-2008 bull market for commodities. The Australian dollar also continues to rebound from multiyear lows.

Few stocks are moving on company-specific news. Wednesday is only session this week with significant earnings announcements, featuring names such as FedEx, Finisar, Jabil Circuit, Micron, and Red Hat.
Share this article with your friends


Related Stories

SPX

Stocks drift before long weekend

May 22, 2015

S&P 500 futures are unchanged, and European indexes are mixed. Shanghai surged almost 3 percent overnight, Seoul was up more than 1 percent.

SPX

Yellen speech, CPI on calendar

May 22, 2015

Today's agenda features several items, including a speech by Fed Chair Janet Yellen, though trading will probably be quiet as the Memorial Day weekend approaches.

SPX

Futures slip after Fed's minutes

May 21, 2015

S&P 500 futures are down less than 0.1 percent, while Europe slid about half a percent. Most of Asia was little-changed, though Shanghai gained almost 2 percent.

SPX

Global data, jobless claims on tap

May 21, 2015

The first item on this side of the Atlantic is initial jobless claims at 8:30 a.m. ET. Economists anticipate a reading of 270,000, up from 264,000 in the previous week.

SPX

Stocks churn before Fed minutes

May 20, 2015

S&P 500 futures are up less than 0.1 percent, matching the performance in Europe so far. Asian markets like Tokyo, Shanghai, and Mumbai also rose nearly 1 percent overnight.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Archived Webinar

Education & Strategy

Short synthetic stock

With the use of the calls and puts we can not only create Long Synthetic Stock, but Short Synthetic Stock as well...

View more education articles »