NEW YORK (Reuters) – After a six-day span in which the benchmark Standard & Poor’s 500 dropped 11 percent, some fund managers and analysts on Wall Street are raising the possibility that a bear market may be looming for the first time since 2009.
For much of the rally, corrections – declines of 10 percent – have been brief, as investors were always ready to jump in, betting that low interest rates and a slow-but-steady economic expansion would boost shares. Stock repurchases and high dividends supported equity investments as well.
NEW YORK (Reuters) – Wild gyrations in the U.S. stock market that sent a key measure of volatility to a near seven-year-high has created a big opportunity for options premium sellers, and traders are making the most of it while it lasts.
U.S. stocks rose on Wednesday, with the market on track to snap its six-day losing streak. It was still a volatile day, however, with the Dow industrials trading in a 420-point range, and the ups and downs were expected to continue.
NEW YORK (Reuters) – The sharp slump in U.S. stocks on opening on Monday threw U.S. options markets out of gear as a dearth of liquidity made it extremely difficult for traders to make trades.
The Dow Jones Industrial Average lost more than a 1,000 points in the first few minutes of trading, after a more-than 8.0 percent drop in Chinese shares and a selloff in crude oil and other commodities.
NEW YORK, Aug 21 (Reuters) – The rout in U.S. stocks this
week and soaring volatility has helped push options trading
volume to a four-year high as traders loaded up on near-term
protection against further downside pressure.
On Friday, concern about a China-led global slowdown sent
the S&P 500 below the 2,000 level and the Dow into
NEW YORK, Aug 13 (Reuters) – A Fed “lift-off” later this
year is a worry for the rate-sensitive utilities but the
sector’s underperformance this year and continued uncertainty
about likely timing of the hike has led to a dramatic drop in
hedging activity in the sector.
The S&P 500 index of utilities, used as a bond
proxy by investors in a low-rate environment, fell about 14
percent over the five months ending June. The sector has logged
a 5 percent decline for the year, compared with a gain of about
1 percent for the S&P 500.
NEW YORK (Reuters) – Top Wall Street banks still expect the Federal Reserve to raise interest rates in September, but a growing number now believe the central bank is likely to only hike once this year, a Reuters poll found on Friday.
Thirteen of 19 primary dealers, or the banks that deal directly with the Fed, polled said they expect the Fed to raise rates by September but just nine now believe the Fed will hike rates twice in 2015, compared with 15 of 20 in the July Reuters poll.
NEW YORK, Aug 7 (Reuters) – Top Wall Street banks still
expect the Federal Reserve to raise interest rates in September,
but a growing number now believe the central bank is likely to
only hike once this year, a Reuters poll found on Friday.
Thirteen of 19 primary dealers, or the banks that deal
directly with the Fed, polled said they expect the Fed to raise
rates by September but just nine now believe the Fed will hike
rates twice in 2015, compared with 15 of 20 in the July Reuters
NEW YORK, Aug 4 (Reuters) – Has the “curse of the Dow”
finally caught up with Apple?
Shares of the iPhone maker have been in a rut since posting
disappointing quarterly results in late June, falling to a
six-month low of $113.25 on Tuesday.
NEW YORK (Reuters) – Fear of increased volatility in the U.S. stock market and the growing proximity of a Federal Reserve interest rate hike helped boost options trading volume in July, sending it to the highest level since October.
The total volume of trading in U.S.-listed equity and index options looks set to rise to about 387 million contracts in July, up 16 percent over June, according to a Reuters analysis of data from options clearinghouse OCC.
NEW YORK (Reuters) – The big selloffs in shares of social media companies last quarter following weak results seem to be brushed under the carpet this earnings season as investors focus instead on the success of Facebook Inc (FB.O: Quote, Profile, Research, Stock Buzz).
Investors in the options market are betting on more gains for the stock after it reports results Wednesday.