Monday Options Recap

Frederic Ruffy submits: SentimentMajor averages have given up early gains and are trading lower late-Monday. The tone of morning trading was positive despite mixed economic news. A report released before the opening bell showed personal incomes falling .1 percent and spending up .2 percent in September. Economists were looking for increases of .2 percent and .4 percent, respectively.

Frederic Ruffy submits: Stocks are broadly higher late Monday. With no economic data or earnings to guide the morning action, the early focus was on the financials after regulators met over the weekend in Basel, Switzerland, to discuss capital ratios. Officials decided banks should increase capital over the next eight years or so and that was not as strict as some market watchers had feared. Consequently, a relief rally lifted the banks.

Frederic Ruffy submits: SentimentStocks opened lower, but battled back in morning trading and market action has turned mixed late-Monday. Economic data was in focus early after the NY Empire State Index, a gauge of regional manufacturing activity, showed an increase to 7.10 in August, from 5.08 in July and less than the 7.50 reading that economists had predicted. On an encouraging note, the index for employment included within the broader index rose to 14.29 from 7.94.

Frederic Ruffy submits: SentimentStocks are broadly higher amid diminishing fears about the European Debt Crisis. Major averages rallied across Europe after the China State Administration of Foreign Exchange issued a statement saying that recent speculation that it is considering sales of euro-zone bonds is “groundless.” The news comes the day after a report on FT.com titled “China Reviews Eurozone Bond Holdings” sent the euro and US stocks sliding Wednesday afternoon.

Frederic Ruffy submits: SentimentThe major averages are holding modest gains following steady trading overseas and upbeat economic news Wednesday. The table was set for a strong open on Wall Street after stocks moved broadly higher across Asia and Europe. A stronger-than-expected report on April Durable Goods (2.9 percent vs. 1.5 percent consensus) and better April New Home Sales (+504K vs. 425K) also helped support morning trading. At its best levels, the Dow Jones Industrial Average had added 135 points.

Frederic Ruffy submits: SentimentMajor averages are broadly higher on optimism for a financial bailout of Ireland and upbeat economic news Thursday. The stage was set for morning gains in the US after major averages moved higher across Europe. The day after Britain pledged aid to Ireland, IMF, EU and Irish officials met Thursday to discuss additional loans to the deeply indebted country. Optimism a deal might be reached sent stocks higher across the Atlantic.

Frederic Ruffy submits: Sentiment Stocks are rallying Monday on a slow news day. The only economic numbers of the day was the NAHB Homebuilder Sentiment Index, which held steady at 18-month lows of 13 in September. Economists were looking for an uptick to 14. The data didn’t move the market. Instead, the focus seems to turning to the Federal Reserve Open Market Committee (FOMC) rate announcement Tuesday afternoon. The market seems to be discounting good news.

Frederic Ruffy submits: SentimentStocks are holding modest gains on a relatively slow news day Monday. With no economic data or earnings of significance to guide the action, much of the focus remains across the Atlantic where European benchmarks moved broadly higher on better-than-expected industrial production data. The euro also rallied and recaptured the 1.22 level.