News hit the Street this morning of slowing demand in China. That is bad news for oil and gas companies, but the rest of the market has found cause for optimism in the data. First, slower economic growth always means the possibility of the freer monetary policies that the Street loves, but this time around, there may be more to it. On Friday, US economic news came in as expected, but as the US and Chinese economies are closely connected, many are betting that the hidden meaning of the data is long-term US economic strength.
At present, stocks are up. The S&P 500 is up 0.95%, the DJIA is up 1.00% and the NASDAQ is up 1.03%.
Here are your Monday morning market metrics. The industries showing strength today include Aerospace & Defense, Professional Services and Biotechnology. The industry showing weakness today is Diversified Financial Services.
The VIX is down 5.97% to 12.59 after closing Friday at 13.39. The most active options this morning is iShares MSCI Emerging Markets ETF (EEM) with 5,000 August-21 expiring $34.50 puts and 5,000 August-21 expiring $36.00 puts changing hands. The total put-call volume ratio is 1.00 (267,086/267,335). NYSE Adv/Dec 2,264/570. NASDAQ Adv/Dec 1,809/541.
Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can follow Julian’s daily hedged options trades and his unfolding market commentary via twitter: @JulianClose_MIC.