Stocks Finish Higher but On Light Volume
Stocks were stuck in a range on light volume Tuesday, as voters headed to the polls for the mid-term elections. The Congressional mid-term election is expected to result in a Republican-controlled House of Representatives. Democrats are expected to retain control of the Senate. Action was relatively quiet again, with investors not doing a whole lot ahead of more big catalysts still to come including: 1) FOMC decision Wednesday November 3; 2) ECB/BOE on Thursday November 4 and; 3) October monthly economic data reports throughout the week. Earnings season continues to wind down and has been less and less a focus for this market.
The Dow Jones Industrial Average ended up 64.10 points, or 0.58%, to close at 11,188. The S&P 500 rose 9.19 points, or 0.78%, to close at 1193, and the Nasdaq was up 28.68 points, or 1.14%, to finish at 2533.
The CBOE Volatility IndexI:VIX closed down $0.26, at $21.57. VIX put volume of 97,000 contracts compared to call volume of 155,000, with November 18 puts as the most active strike on 24,600 contracts. November at-the-money options volatility was lower than the December series, suggesting larger, farther out movement.
SPDR S&P 500 ETF (SPY) - Get Report traders are bidding up November weekly volatility around the mid-term election and FOMC meeting. The SPYs closed up $0.94, at $119.47, with overall put volume of 1.03 million contracts trading as compared to call volume of 672,000. November (W) 117 puts traded on volume of 71,000 contracts. Higher November weekly volatility suggests traders are hedging for price movement.
PowerShares QQQ Trust (QQQQ) touched a new 52-week to close up $0.55, at $52.77, on overall put volume of 220,000 contracts compared to call volume of 231,000, with December 54 calls as the most active options series. November monthly volatility is at 23 and December is at 22 versus its 26-week average, indicating larger near-term price movement
The following economic data are expected to be released Wednesday: MBA Purchase Applications due out at 7:00 a.m. EDT, Challenger Job-Cut Report at 7:30 a.m. EDT, ADP Employment Report at 8:15 a.m. EDT, and Factory Orders at 10:00 a.m. EDT.
Notable companies reporting before the open include: AET, AGU, AOL, BUD, CNW, CTL, CVS, DVN, FCH, H, HSNI, KKR, MGM, PHM, Q, SPW, TAP, TDW, TRW, TWX and WLP; after the close: BGC, CAR, CBB, CELL, CLWR, DOX, GDOT, GRMN, IPI, KIM, LBTYA, MUR, ONNN, OPNT, PACR, PL, PRE, PRU, QCOM, QNST, RIG, RKT, SLF, SWIR, TX, VCLK and WFMI.
OptionsProfits For actionable options trade ideas from a team of experts, visit TheStreet's OptionsProfits now.
Readers Also Like:
>>Have Your Cake and Eat it Too
Readers Also Like:
>>Sometimes Static Can be Good
Readers Also Like:
