OptionsHouse

Options Trading News

July 24, 2013  Wed 7:14 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are climbing again today as momentum remains bullish and the news stays positive.

S&P 500 futures are up more than 0.4 percent, while Europe is rallying more than 1 percent. Asian markets were little-changed in the overnight session.

The S&P 500 fell slightly yesterday after making another record close on Monday but has been inching higher as it pushes against an earlier peak from May. If today's gains hold, it could represent a decisive break above resistance and draw new money to the market.

Strong corporate earnings and positive economic data have kept sentiment upbeat. Companies such as Apple, PepsiCo, Electronic Arts, Ford, and Boeing have beaten expectations. Europe's composite purchasing managers index also showed unexpected expansion, led by the strongest manufacturing reading in more than two years.

The news was less sanguine in Asia, where Japanese exports grew less than forecast and Chinese factory data disappointed.

Our proprietary researchLAB tool has shown a wide-ranging demand for equities, with no single sector dominating performance. In the last week, investors have returned to the global-growth theme by favoring beaten-down companies such as coal miners, copper producers, steel makers, and shipping stocks. Lesser-known financials, including non-traditional asset managers and financial guarantors, have outperformed. Riskier indexes such as mid-caps, transports, and small-caps have led to the upside as well.

Today's economic reports include new home sales at 10 a.m. ET and crude-oil inventories 30 minutes later. Tomorrow is the busiest day for data, with durable goods, initial jobless claims and Germany's Ifo survey of business confidence on the agenda.

Metals are continuing to advance today, led by a gain of almost 1 percent by copper, and less than half a percent for gold and silver. Energy prices are mixed, with Brent crude down and West Texas Intermediate roughly flat. That's potentially bearish for refiners.

A weak yen is the main theme in foreign-exchange markets today as the Japanese currency declines against all majors. The euro is also inching higher against the U.S. dollar, while the Australian dollar is down almost a full percent on the weak Chinese data.

Elsewhere in company-specific news, earth-moving giant Caterpillar fell almost 2 percent after earnings and revenue missed estimates. Management also lowered guidance. Norfolk Southern is down after missing on weak coal shipments.

Data-storage company EMC rose 5 percent after revenue beat consensus. General Dynamics, WellPoint, TE Connectivity, and Wyndham Worldwide also released strong numbers.
Share this article with your friends


Related Stories

SPX

Futures decline after Greek ballot

July 6, 2015

S&P 500 futures are down 0.6 percent after dropping about 1.1 percent overnight. European indexes have followed a similar trajectory but are 1-2 percent in the red. Asia was mostly lower as well.

SPX

Quiet calendar after Greek vote

July 6, 2015

Today's agenda starts early with German factory orders and the European Sentix sentiment gauge. The main U.S. item is the Institute for Supply Management's service-sector index.

SPX

Futures climb after jobs report

July 2, 2015

S&P 500 rose 0.3 percent, up from an earlier gain of 0.1 percent after non-farm payrolls missed estimates by a small margin.

SPX

Job data in focus before holiday

July 2, 2015

Non-farm payrolls, moved forward from Friday, and weekly jobless claims are due at 8:30 a.m. ET. Factory orders for May follow at 10 a.m. ET.

SPX

Stocks hold gains after jobs data

July 1, 2015

S&P 500 futures rebounded 0.8 percent as investors look past the Greek debt crisis and focus on economic news. Europe was broadly higher while bonds continue to fall.

OptionsHouse

Premium Services

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »