9:05am (EST)
The bulls got off the mat on the 9 count after a barrage of punches thrown by the bears had them reeling on Monday. However, they were able to win the round as all three of the major indexes finished in the green as the Euro bounced off its lows.
The Dow was experiencing its “normal” triple-digit swing and tumbled nearly 185 points to 10,436 while we were doing our midday update. However, the index rebounded off the lows to settle with a gain of 6 points, or 0.1%, and closed at 10,625.
The S&P 500 finished a little over a point higher, or 0.1%, and settled at 1,137 after falling to 1,115 intraday. Meanwhile, the Nasdaq led the charge higher as it advanced 7 points, or 0.3%, and was last seen at 2,354.
We mentioned this is option expiration week so the volatility will likely have some extra spice. The CBOE Market Volatility Index (VIX, 30.84, down 0.40) traded between 30-35 yesterday and has doubled since hitting a low of 15 in April. Basically, “fear” in the market place has exploded which is why the index keeps ticking up.
Speaking of scary stuff, General Motors is back from the dead after declaring bankruptcy last year and posting a profit. It was the company’s first quarterly win in 3 years and sets the table for them to becoming a publicly traded company again. The stock offering would repay the $50 billion the government (and us) shelled out last year to save them.
GM reported earnings of $865 million, or $1.66 a share, versus a loss of $6 billion, or $9.78 a share, in the year ago quarter. Revenue surged 40% to nearly $32 billion.
Look for the initial public offering (IPO) later this year.
It’s hard to believe we just wrote that because anyone who held previous GM shares has got to be ticked-off after being wiped out while GM emerges from bankruptcy protection. The Obama administration plans to get back the remaining $43 billion of the $50 billion we shelled out by selling its stake once shares start to trade.
As we head to press, the market looks like it will open higher this morning. Dow futures are up 71 points to 10,670 while the S&P 500 futures are higher by 10 to 1,144. The Nasdaq 100 futures are showing a 14 point gain and are at 1,928.
Tags: General Motors, option picks, option signals, options alerts, stock options trading, VIX
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General Motors Turns A Profit
9:05am (EST)
The bulls got off the mat on the 9 count after a barrage of punches thrown by the bears had them reeling on Monday. However, they were able to win the round as all three of the major indexes finished in the green as the Euro bounced off its lows.
The Dow was experiencing its “normal” triple-digit swing and tumbled nearly 185 points to 10,436 while we were doing our midday update. However, the index rebounded off the lows to settle with a gain of 6 points, or 0.1%, and closed at 10,625.
The S&P 500 finished a little over a point higher, or 0.1%, and settled at 1,137 after falling to 1,115 intraday. Meanwhile, the Nasdaq led the charge higher as it advanced 7 points, or 0.3%, and was last seen at 2,354.
We mentioned this is option expiration week so the volatility will likely have some extra spice. The CBOE Market Volatility Index (VIX, 30.84, down 0.40) traded between 30-35 yesterday and has doubled since hitting a low of 15 in April. Basically, “fear” in the market place has exploded which is why the index keeps ticking up.
Speaking of scary stuff, General Motors is back from the dead after declaring bankruptcy last year and posting a profit. It was the company’s first quarterly win in 3 years and sets the table for them to becoming a publicly traded company again. The stock offering would repay the $50 billion the government (and us) shelled out last year to save them.
GM reported earnings of $865 million, or $1.66 a share, versus a loss of $6 billion, or $9.78 a share, in the year ago quarter. Revenue surged 40% to nearly $32 billion.
Look for the initial public offering (IPO) later this year.
It’s hard to believe we just wrote that because anyone who held previous GM shares has got to be ticked-off after being wiped out while GM emerges from bankruptcy protection. The Obama administration plans to get back the remaining $43 billion of the $50 billion we shelled out by selling its stake once shares start to trade.
As we head to press, the market looks like it will open higher this morning. Dow futures are up 71 points to 10,670 while the S&P 500 futures are higher by 10 to 1,144. The Nasdaq 100 futures are showing a 14 point gain and are at 1,928.
Tags: General Motors, option picks, option signals, options alerts, stock options trading, VIX
This entry was posted on Tuesday, May 18th, 2010 at 8:10 AM and is filed under Company Commentary, Market Commentary, Mergers and Acquisitions. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.