Learn the trade here. Make it on tradeMONSTER

Options Trading News

April 9, 2013  Tue 7:11 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are climbing this morning as investors return to the global-growth theme.

S&P 500 futures are up about 0.25 percent, matching gains of a similar magnitude in Europe. Indexes were mostly higher across the Asia-Pacific region overnight after China reported a sharp slowing of inflation. Traders think that will keep the country's central bank from raising interest rates.

Equities in China and Australia, which is highly dependent on the mainland country, rallied about 1 percent on the news. Japan's Nikkei edged lower.

Corporate earnings season officially began yesterday afternoon with mixed results from aluminum producer Alcoa. Other companies will release final and preliminary numbers at an accelerating pace throughout April, shaping opinions about whether to keep buying equities near long-term highs or to take profits.

While employment data has recently disappointed, sentiment remains firmly bullish as capital trickles out of fixed income and investors expect the global economy to keep improving. The Dow Jones Transportation Average and Russell 2000 small-cap index have already broken out to all-time highs, and the big question now is whether the S&P 500 will follow by pushing through its 2007 peak of 1576.

A late-day fit of buying yesterday drove the benchmark to 1563, back above its 10-day moving average, while small caps and transports led the S&P 500 for the first time since mid-March. That may suggest short-term momentum is turning bullish once again. Financials also staged a turnaround yesterday, fighting back from early losses to end higher. If they return to rally mode, it could also support equity prices.

Commodities and foreign-exchange trading are modestly bullish. Oil is up about one-third of a percent and copper is adding about 0.75 percent. Precious metals and agricultural products are mixed. The euro, Australian dollar and Canadian dollar are all higher against the U.S. currency. Then Japanese yen, however, is higher against most others.

In company-specific news, Alcoa is lower by about 1 percent following its results after yesterday's close. Retailer J.C. Penney is down 8 percent after firing CEO Ron Johnson. It had initially rallied yesterday afternoon on the move but is now falling as investors focus on how the company's board of directors handled the situation.
Share this article with your friends


Related Stories

SPX

Stocks slip before short session

November 28, 2014

S&P 500 futures are down 0.1 percent before a holiday-shortened session. Oil stocks are down and airlines are rallying.

SPX

Quiet calendar before busy week

November 28, 2014

Today's economic calendar is very quiet, with an early end to trading, but next week has significant economic data. European inflation is the only item, due early in the morning.

SPX

Stocks drift before Thanksgiving

November 26, 2014

S&P 500 futures are up less than 0.1 percent in what will likely be light trading on Thanksgiving eve. Europe is fractionally higher, while China rallied overnight.

SPX

Busy agenda before Thanksgiving

November 26, 2014

Today's agenda is busy, with some items moved forward because of the Thanksgiving holiday tomorrow and the half-day session on Friday.

SPX

Europe leads gains before key data

November 25, 2014

S&P 500 futures are up about 0.1 percent, while stocks higher by 0.5 percent to 1 percent across the Atlantic. Attention now turns to revised GDP numbers and consumer confidence.

Premium Services

Free Webinar Series

Using Options for Income

Education & Strategy

Importance of learning the basics

Personally, I could never understand how so many option instructors start teaching strategies before explaining what an option is. I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER