Strong 3 day bounce, but the real repercussions of BREXIT will be clearer in time. Are the banks in the clear? That would be quick!
US stocks open higher after banks earnings, strong retail sales It appears the market is getting tired and financials are mixed and weak
Options Traders See Upside for Financial Stocks Options traders haven’t felt this good about financial stocks in months. In morning trading Tuesday, 42% of options traders were rated bullish on S&P 500 financial shares, based on the volume of contracts tracked by data provider Trade Alert. That’s the highest share since April 18, when 43.5% were bullish, and higher than the average since January, 29.5%. The shift in sentiment is significant because financial stocks have been battered for much of 2016. They sold off sharply in the market rout at the beginning of the year, and recouped losses through May, only to tumble after the U.K. voted to exit the European Union. The sum of all that? Financials remain the lone S&P 500 sector to be negative for the year. But in the last two weeks, a string of better-than-expected earnings reports from major banks including J.P. Morgan Chase & Co., Bank of America and Citigroup have helped lift financial shares–and sparked activity in the options market. Bets on financial shares moving up dominated Tuesday morning. The most active contract in the financial sector on Tuesday was a call on Bank of America with a strike price of $14.50. Call options give holders the right to buy shares of the underlying stock at a set price–called the strike–by a specific time. (In this case: August 19th.) Shares of Bank of America are currently trading at $14.33, or up 1.6% for the day. At least according to options traders, this might just be the turnaround point for bank stocks. http://blogs.wsj.com/moneybeat/2016...see-upside-for-financial-stocks/?mod=yahoo_hs
No screen shot today. Financials are down slightly as the markets are taking a hit. I expect a rebound once the sell off is done this week
U.S. stock futures waver ahead of Fed, key earnings U.S. stock futures struggled for direction on Tuesday, with investors opting for the sidelines ahead of the closely watched Federal Reserve meeting and a deluge of earnings, including updates from McDonald’s, Verizon and Apple. Futures for the Dow Jones Industrial Average YMU6, -0.09% declined 20 points, or 0.1%, at 18,401, while those for the S&P 500 index ESU6, -0.03% lost 1.70 point, or about 0.1%, to 2,160. Futures for the Nasdaq-100 index NQU6, +0.11% gained 4.50 points, or 0.1%, to 4,658.50. The muted action follows a downbeat session on Monday, when the S&P 500 index SPX, -0.30% and Dow industrials DJIA, -0.42% ended 0.3% and 0.4% lower, respectively. Investors are wary of making any big moves ahead of an interest-rate decision from the Fed, due on Wednesday. The central bank kicks off its meeting on Tuesday, its first gathering since the U.K. on June 23 voted to leave the European Union.
“The Fed is expected to remain on hold and to deliver a cautious accompanying statement given the rising political and economic risks following the Brexit vote,” said Ipek Ozkardeskaya, senior market analyst at London Capital Group. “The expectations of a Fed rate hike by the end of the year have faded to zero. In contrary, the market is pricing in more than 50% chances for an interest rate cut in the U.S. by March 2017
U.S. stocks traded higher Wednesday, helped by positive reaction to some major earnings reports, ahead of the central bank's decision on monetary policy.
