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

Options and high-frequency trading

April 18, 2014

There has been much talk lately of high-frequency trading and what it means to the markets and retail traders. The big issues and arguments all point in favor of options.

SPX

Stocks in range as earnings flow

April 17, 2014

This morning's big companies--Goldman Sachs, General Electric, Morgan Stanley, and PepsiCo--are all trading higher after beating estimates.

SPX

GE, Goldman, jobless claims on tap

April 17, 2014

Earnings and jobless claims are the main events on today's calendar. Trading will likely be light with markets closed tomorrow for Good Friday.

SPX

Futures rise, halting recent slide

April 16, 2014

S&P 500 futures are up more than 0.5 percent, while the Nasdaq is up almost 1 percent. Most European indexes are up a similar amount, while Tokyo led Asia with a 3 percent rally.

SPX

Earnings, housing data on docket

April 16, 2014

Today's calendar includes earnings from Bank of America and Google, plus housing data. Economic headlines start early with European inflation, which could affect the euro and energy.

Premium Services

Education & Strategy

When cash is king (of hedging)

Whether your trades are winning or losing, it can be tempting to add to your positions. But in either case,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER