OptionsHouse

Options Trading News

June 12, 2013  Wed 7:14 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are up this morning after holding a key support level yesterday.

S&P 500 futures are climbing by two-thirds of a percent and have been gaining all morning, while European markets are posting more modest gains. Asian markets fell overnight, led by a drop of more than 1 percent in China.

The S&P 500 declined more than 1 percent yesterday but remained above the key 1622 level that provided a floor May 8-10 and earlier this month. If today's gains hold, it could be important because it would suggest that the index is not yet ready to make a lower high after its peak last month.

Some of yesterday's declines were caused by a midday surge in the Japanese yen, which tends to be negative for equities. But the currency failed to make new highs and is weaker across the board today. In other overseas news, the Eurozone reported that industrial production rose 0.4 percent in April versus the 0.2 percent decline forecast by economists.

Elsewhere in foreign-exchange markets, the euro is down slightly against the U.S. dollar. But the Australian dollar is surging more than 1 percent, and the Canadian currency is posting a smaller gain.

Commodities are modestly bullish as well, with oil and copper trying to climb. Silver is also higher and agricultural products are mixed.

While the tone has mostly been conservative overall, some industry groups reflect optimism. optionMONSTER's proprietary researchLAB market scanner shows strength in the last week among optical-communications companies such as Ciena and Infinera, which rely on the telecom investment cycle. Jewelry stores and motor homes, which also sell big-ticket items, have outperformed as well.

Names tied to the global economy and emerging markets--coal, iron ore, and basic metals--have remained weak as growth slows in China, India, and Brazil. Chinese Internet stocks, however, have been rallying.

In company-specific news, chip maker Rambus is up 11 percent after South Korean's Hynix agreed to pay $240 million to settle patent dispute that began in 2000. Ulta Salon, Cosmetics & Fragrance is climbing 9 percent after first-quarter earnings and revenue beat expectations.
Share this article with your friends


Related Stories

SPX

Stocks trying to recover from selloff

January 29, 2015

S&P 500 futures were up 0.5 percent but are now up just slightly. Europe has also surrendered earlier gains. Japan and China both fell more than 1 percent overnight.

SPX

Jobless claims, earnings on docket

January 29, 2015

Initial unemployment filings, the first item on this side of the Atlantic, are expected to show a reading of 301,000, compared with 307,000 in the previous period.

SPX

Stocks rally on earnings before Fed

January 28, 2015

S&P 500 futures are up 0.4 percent, while strong earnings from Apple have lifted the Nasdaq 100 more than 1 percent. European indexes are modestly lower, and Asia was little-changed overnight.

SPX

Fed meeting, earnings top calendar

January 28, 2015

Economists expect the central bank to leave monetary policy unchanged, but it's not clear how traders will react to the statement.

SPX

Stocks fall sharply on poor earnings

January 27, 2015

S&P 500 futures are down 1 percent, while European indexes have fallen 1 to 2 percentage points. Asia was mixed overnight, with Tokyo gaining almost 2 percent and Mumbai up 1 percent.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Archived Webinar

Option Money Machine Winter Classic

Education & Strategy

The rolling technique

In the January 7th edition of Advantage Point, we initiated the purchase of a second week-out GOOGL 535 put at...

View more education articles »