The S&P 500 closed the day slightly lower; however, volume was extremely anemic.
The VIX is trading below the 13 level; however, it gained less than a percent.
The energy market saw some increased volatility. The United States Oil Fund was down 4%, closing at 19.63. In addition, option volatility spiked in USO options, rising nearly 4 points and closing at 33% IV (for the 30-day at-the-money options)
The S&P 500 ended Friday’s trading at all-time highs. However, the market was in an extremely narrow trading range. Possibly, a hint that summer trading is around the corner.
The VIX is back below the 12.5 level. It will be interesting to see if we break below 12.
Crude Oil futures are near their 3 month highs, closing slightly below $60 per barrel.
Earnings worth highlighting this week include Wal-Mart (WMT), Home Depot (HD) and Hewlett-Packard (HPQ).
The S&P 500 closed the day lower; however, it fought back after being down a decent amount in the pre-market. At one point, both the S&P 500 and the NASDAQ were below the 50-day moving average.
The VIX is back above the 13.50 level; however, despite the volatility, it was barely unchanged today, closing at 13.86.
The energy market continues to strengthen; the United States Oil ETF (USO) settled higher, at $20.74, good for nearly a 2% gain.
The S&P 500 erupted after Friday’s nonfarm payrolls report, erasing losses from Tuesday and Wednesday’s trading sessions.
The VIX is back below the 13 level after gettting above the 15 mark this week.
Crude Oil futures reached their highest level in 3 months earlier in the week, closing above $60 per barrel. Currently, we’re just below that, at $59.42 per barrel.
Earnings continue to chug along…however, many of the big names have already released. Some key names to watch are Cisco (CSCO), Applied Materials (AMAT), Rackspace Hosting, Inc. (RAX) and retailer, Kohl’s Corp (KSS).
The S&P 500 saw a small bounce today, closing up, less than .5%. With that said, the VIX didn’t move much, closing at 15.13. In individual stock news, we got some reactions to recent earnings releases from Alibaba Group Holding Limited (BABA) +7.5%, Priceline Group Inc (PCLN) -4%, and Tesla Motors (TSLA) +2.8% to name a few.
One strong sector this week has been in the energy group; however, crude oil futures closed the day relatively weak; the United States Oil ETF (USO) settled in at $20.20, good for a 3% decline.
On the options front, we saw bullish call buying in Kinross Gold Corporation (KGC) and Cabelas Incorporated (CAB). Bearish option bets were made in Yingli Green Energy Holding Company Limited (YGE).
Other stocks in play today were Yelp Inc (YELP) +23%, Xilinx Inc (XLNX) +0.59%, and Monsanto (MON) +2.43%. These names were all associated with takeover chatter.
Here’s what’s on tap for the rest of the week:
Key Economic Data:
8 MAY 2015- Employment Situation 10:00 AM ET
The S&P 500 saw continued selling pressure, closing down over 1%. Many market pundits believe the move was attributed U.S. international trade data, implying the economy might be weaker than expected.
Another possible answer to today’s decline was the weakness out of China. The Shanghai Composite Index dropped over 4%.
With that said, the VIX surged over 11%, closing at 14.31.
On bright spot is the energy market; crude oil futures closed the day relatively strong; the United States Oil ETF (USO) settled in at $20.75, good for a gain of over 2%.
On the options front, we saw bullish call buying in Vale SA (VALE), SalesForce.com Inc (CRM). Bearish option bets were made in Viacom Inc (VIAB).
Here’s what’s on tap for the rest of the week:
Key Economic Data:
7 MAY 2015- Jobless Claims 8:30 AM ET
8 MAY 2015- Employment Situation 10:00 AM ET
Key Earnings:
6 MAY 2015- CHK, LAMR, SODA, WEN, HAIN, GSK, ATML, ATVI, CF, FOXA, MET, MRO, TRIP, TSLA, WFM
7 MAY 2015- APA, APO, BABA, GOOG, LEAF, PCLN, SN, CBS, CYBR, NUAN, OLED, OUTR, SFM, TSO
The S&P 500 ended the week lower, despite a nice bounce on Friday.
The VIX is currently below the 13 level, indicating little to no fear in the market.
Crude Oil futures ended the week up, maintaining their strength. The United States Oil ETF, (USO), closed the week at $20.40 per share.
This upcoming week is light on economic data; however, we should see some decent volatility in individual stock names. There are still a slew of companies releasing earnings. One notable name will be Alibaba Group Holding Limited (BABA).
Another notable catalyst will be on Monday; the 20th Annual Ira Sohn Investment Conference will start. Basically, a meeting of some of the sharpest minds on Wall Street talking about their views on the market and what their favorite investment ideas are.
Comments made by some of the top hedge fund managers have the potential to really move individual stock names. Over the last several weeks we’ve seen a ton of aggressive call buying in CSX Corp (CSX). Some traders believe that is a company that will be mentioned positively in the conference.
Last year, The Wall Street Journal live blogged the conference. We highly suggest you find a website that will be covering the conference.
Here’s what’s on the schedule:
Key Economic Data:
5 MAY 2015- International Trade 8:30 AM ET
7 MAY 2015- Jobless Claims 8:30 AM ET
8 MAY 2015- Employment Situation 10:00 AM ET
Key Earnings:
4 MAY 2015- CVS, CMCSA, CTSH, L, PRGO, RLGY, SIRI, TSN, EOG, THC
5 MAY 2015- ADM, DISCA, EMR, HCA, ICE, K, NBL, ODP, S, TRW, VMC, ZTS, UBS, DIS, DVN, EA, HLF
6 MAY 2015- CHK, LAMR, SODA, WEN, HAIN, GSK, ATML, ATVI, CF, FOXA, MET, MRO, TRIP, TSLA, WFM
7 MAY 2015- APA, APO, BABA, GOOG, LEAF, PCLN, SN, CBS, CYBR, NUAN, OLED, OUTR, SFM, TSO
Key Conferences:
4 MAY 2015- Longbow 6th Annual Cleveland Industrial Days, 20th Annual Sohn Investment Conference
The S&P 500 rallied strong after yesterday’s sell off. Despite the run up in the market, they ended the week lower.
It was a fairly slow day unless you traded off headlines. One stock in play was YUM Brands Inc. (YUM). The stock price spiked nearly 7% after Dan Loeb’s Third Point announced that they were taking a major stake in the company.
Yesterday’s fear was forgotten. The VIX practically collapsed, it was down over 12%, closing at 12.70
Crude oil futures closed the day relatively flat; the United States Oil ETF (USO) settled in at $20.40.
On the options front, we saw bullish call buying in Aercap Holdings NV (AER) and CSX Corporation (CSX). Bearish option bets were made in Rockwell Medical Inc. (RMTI).
We saw some decent volatility in the market today, however; the S&P 500 saw an early morning sell-off transition into late buying by the close.
With the sell-off losing steam, the VIX fizzled as well. However, it did hit a high of 14.23 before closing at 12.41.
Crude oil futures closed the day relatively flat; the United States Oil ETF (USO) settled in at $19.60.
On the options front, we saw bullish call buying in Allscripts Healthcare Solutions Inc (MDRX). Bearish option bets were made in Endurance International Group Holdings Inc (EIGI).
Tomorrow’s GDP and FOMC Announcement have enough juice to move the market. Of course, earnings will also play a big role. Earlier this afternoon Twitter’s (TWTR) earnings were pre-released. Ironically, the information was spread through Twitter. The stock is down 20% (including the after hours).
The S&P 500 and other major indices continue to surge higher. The NASDAQ, closed the week at an all-time high and the VIX is at yearly lows (closing at this year’s lows).
This upcoming week is jam-packed with earnings and economic headlines. On the earnings front, we have heavy hitters like Exxon Mobil and Apple reporting. Thus far, we’ve had about 40% of the earnings complete. For the most part, they’ve been relatively lackluster; however, the market has shrugged off any bad news.
Key economic data includes GDP and the FOMC Announcement.
We’ve got enough data and earnings coming out to really push this market. It will either continue to move higher or we could have some hiccups along the way. So far this year, the VIX has not hung out in the 12 range for too long. Will this continue to be the case or is market volatility going to continue to be non-existent?
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