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

Futures spike up on central banks

November 21, 2014

S&P 500 futures are up 0.8 percent, but Europe is leading the charge with a move of more than 2 percent. Central bankers in China and Europe fueled the moves.

SPX

Quiet agenda before Thanksgiving

November 21, 2014

Today's calendar is empty, followed by a busy week heading into Thanksgiving next Thursday. The only items are quarterly results from Foot Locker and ANN.

SPX

Stocks pull back on weak global data

November 20, 2014

S&P 500 futures are down 0.4 percent, but the losses are much sharper in Europe. Australia was the only big mover in the Asia-Pacific region, with a drop of 1 percent overnight.

SPX

Economic, company news on tap

November 20, 2014

Initial jobless claims and consumer prices for October get the ball rolling at 8:30 a.m. ET. Best Buy, Dollar Tree, GasLog, and JinkoSolar announce quarterly results before the opening bell.

SPX

Stocks hold firm before housing data

November 19, 2014

S&P 500 are little-changed, fighting back from modest losses earlier in the morning. Italy and Germany are the biggest movers across the Atlantic, while Asia was moderately lower overnight.

Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER