The S&P 500 has run up, bumped up against resistance, and failed to decisively break through just yet. Softness was seen in the retail data overall, and specifically with Walmart due to poor guidance. Despite lower gas prices, the data suggests that people are not taking that extra discretionary money to the stores to spend. Automobiles seem to be an exception as GM and Ford stock prices are holding up better than Toyota, as recent weakness in the dollar may make it more difficult for Japan automakers to sell to U.S. consumers.
The CBOE Volatility Index (VIX) had been falling during the market winning streak, and bounced slightly over the last couple of days. Market sentiment, with conflicting signals, remains little changed in recent weeks. Options traders can make strong returns in any market. To learn more click here: http://www.optionsuniversity.com/academy
OVERSEAS: Global markets were strongly up across the board with major Chinese markets up over 2% and the Nikkei, FTSE, and DAX all up over 1%. The primary driver appears to be that poor economic data in China is fueling hopes of government stimulus.
OIL: The price of oil dropped a couple of dollars to $46 a barrel. The main issue is that the Saudis have shown no signs of decreasing their production even as global supply remains high. A bill that would allow the U.S. to export oil to other countries for the first time since the 1970’s will likely go nowhere for now given the current white house opposition.
JOBS: The consensus expectation of jobless claims going into Thursday was that the total number of expected claims would be about 270K. The actual figure came in at only 255K, which is also lower than the prior week of 262K revised. The overall trend of applications for unemployment benefits continues downward:
BIOTECH INSIDER: After weeks of political backlash, many biotech stocks are finding support. After falling from $72.50 highs to less than $$60 a share, Teva Pharmaceutical (TEVA), for example, has entered the oversold range. Teva has a December 2015 catalyst that could send the stock higher. On December 9, 2015, the company will face FDA panel review for the treatment of inadequately controlled asthma in adults and children. The drug – Reslizumab – reportedly attacks the very molecules that cause asthma. “An injection once a month was given to hard-to-treat asthma patients,” according to reports, “Their inflammation went down and they had a 50 percent reduction in severe asthma attacks. ‘It takes some of our severe asthma patients from being really out of control to being well-controlled.’” To learn how our resident biotech expert uncovers similar opportunities, we direct your attention to his latest presentation found here: http://www.optionsuniversity.com/blog/biotech-big-money-secrets-recording/
The post Jobless Claims Down, Markets Rally appeared first on .