Author: admin

United States Michigan Consumer Sentiment Index came in at 52.9, below expectations (53.4) in December

United States Existing Home Sales Change (MoM) dipped from previous 1.2% to 0.5% in November

It is Quadruple Witching Friday—that rare quarterly alignment where contracts on four different types of securities expire simultaneously:

• Index options

• Single stock options

• Index futures

• Index futures options

According to data from Goldman Sachs, a staggering $7.1 trillion in notional options exposure is set to expire today. To give you an idea of the sheer scale here, that represents notional exposure equal to roughly 10.2% of the total market capitalization of the Russell 3000.

Broken down, that includes about $5 trillion tied to the S&P 500 and another $880 billion linked to single stocks.

So, why is today so heavy?
December expirations are typically the biggest of the year anyway, as funds and retail traders alike look to close out positions and finalize P&L before the books shut. December options also attract the big annual hedges but even by December standards, this one eclipses all prior records.

In terms of price action, huge options expirations tend to get headlines as if they will stoke volatility but because of delta-hedging, they end up restraining volatility. S&P 500 futures were last up 6 points, or 0.1%.

Options tend to cluster around big round numbers and with S&P 500 futures at 6785, that will make 6800 as the main battleground. If we get there, we could see the market pinned there. At the same time, I will be watching price action in individual Mag7 names if we get stuck there as funds could be using the liquidity to make exits.

There is a popular line of thinking that the megacap names are due for some selling next year as the AI narrative is challenged and profitability re-prioritized. So if we see some heavy dumping of Nvidia as the rest of the market holds up, that could be a tell.

This article was written by Adam Button at investinglive.com.

It is Quadruple Witching Friday—that rare quarterly alignment where contracts on four different types of securities expire simultaneously:

• Index options

• Single stock options

• Index futures

• Index futures options

According to data from Goldman Sachs, a staggering $7.1 trillion in notional options exposure is set to expire today. To give you an idea of the sheer scale here, that represents notional exposure equal to roughly 10.2% of the total market capitalization of the Russell 3000.

Broken down, that includes about $5 trillion tied to the S&P 500 and another $880 billion linked to single stocks.

So, why is today so heavy?
December expirations are typically the biggest of the year anyway, as funds and retail traders alike look to close out positions and finalize P&L before the books shut. December options also attract the big annual hedges but even by December standards, this one eclipses all prior records.

In terms of price action, huge options expirations tend to get headlines as if they will stoke volatility but because of delta-hedging, they end up restraining volatility. S&P 500 futures were last up 6 points, or 0.1%.

Options tend to cluster around big round numbers and with S&P 500 futures at 6785, that will make 6800 as the main battleground. If we get there, we could see the market pinned there. At the same time, I will be watching price action in individual Mag7 names if we get stuck there as funds could be using the liquidity to make exits.

There is a popular line of thinking that the megacap names are due for some selling next year as the AI narrative is challenged and profitability re-prioritized. So if we see some heavy dumping of Nvidia as the rest of the market holds up, that could be a tell.

This article was written by Adam Button at investinglive.com.

The new joint venture will prevent TikTok from shutting down in the U.S. due to national security concerns.

Sector Overview

The US stock market today is witnessing notable trends in the technology and semiconductor sectors. Based on today’s heatmap, tech giants are on the rise, with Oracle (ORCL) leading the charge with a stunning increase of 5.47%. Meanwhile, the semiconductor industry is experiencing a substantial uptrend, prominently driven by Nvidia (NVDA) rising 1.73% and AMD climbing 2.29%.

Conversely, the consumer cyclicals show a mixed scenario; while Tesla (TSLA) is up 0.89%, other key players like Amazon (AMZN) have dipped slightly by 0.25%. Additionally, consumer electronics giant Apple (AAPL) is down by 0.15%, suggesting mild investor caution or profit-taking in this zone.

Market Mood and Trends

Today’s market sentiment is governed by optimism in tech and semiconductors, countered by a cautious outlook in consumer-centric sectors. This mixed signal is indicative of an investor pool that remains watchful amid industry-specific developments and economic indicators.

The upward trajectory in tech and semiconductors might reflect industry resilience or upcoming positive announcements. Meanwhile, stability in sectors like healthcare, with Eli Lilly (LLY) up 0.96%, adds a layer of defensive strategy traction in investor portfolios.

Strategic Recommendations

Given today’s insights, investors might consider bolstering their positions in leading tech and semiconductor stocks like Oracle and Nvidia to leverage current growth momentum. Meanwhile, continued monitoring of consumer cyclicals is advised to navigate potential volatility.

For a balanced portfolio, diversifying into stable sectors such as healthcare could buffer against downturns in more volatile sectors. Healthcare’s steady showing, with a focus on drug manufacturers like LLY, which posted a gain today, offers a reliable anchor.

In conclusion, while tech appears bullish, the sector’s intrinsic volatility warrants a calculated approach. Stay vigilant and adjust strategies in line with real-time data and market forecasts. For further insights and updates, visit InvestingLive.com to stay informed of the latest market developments and expert analyses.

This article was written by Itai Levitan at investinglive.com.

Sector Overview

The US stock market today is witnessing notable trends in the technology and semiconductor sectors. Based on today’s heatmap, tech giants are on the rise, with Oracle (ORCL) leading the charge with a stunning increase of 5.47%. Meanwhile, the semiconductor industry is experiencing a substantial uptrend, prominently driven by Nvidia (NVDA) rising 1.73% and AMD climbing 2.29%.

Conversely, the consumer cyclicals show a mixed scenario; while Tesla (TSLA) is up 0.89%, other key players like Amazon (AMZN) have dipped slightly by 0.25%. Additionally, consumer electronics giant Apple (AAPL) is down by 0.15%, suggesting mild investor caution or profit-taking in this zone.

Market Mood and Trends

Today’s market sentiment is governed by optimism in tech and semiconductors, countered by a cautious outlook in consumer-centric sectors. This mixed signal is indicative of an investor pool that remains watchful amid industry-specific developments and economic indicators.

The upward trajectory in tech and semiconductors might reflect industry resilience or upcoming positive announcements. Meanwhile, stability in sectors like healthcare, with Eli Lilly (LLY) up 0.96%, adds a layer of defensive strategy traction in investor portfolios.

Strategic Recommendations

Given today’s insights, investors might consider bolstering their positions in leading tech and semiconductor stocks like Oracle and Nvidia to leverage current growth momentum. Meanwhile, continued monitoring of consumer cyclicals is advised to navigate potential volatility.

For a balanced portfolio, diversifying into stable sectors such as healthcare could buffer against downturns in more volatile sectors. Healthcare’s steady showing, with a focus on drug manufacturers like LLY, which posted a gain today, offers a reliable anchor.

In conclusion, while tech appears bullish, the sector’s intrinsic volatility warrants a calculated approach. Stay vigilant and adjust strategies in line with real-time data and market forecasts. For further insights and updates, visit InvestingLive.com to stay informed of the latest market developments and expert analyses.

This article was written by Itai Levitan at investinglive.com.

The agreement is an expansion of the companies’ existing strategic partnership.