Big Picture

About 3/4‘s of the companies in the S&P 500 that have already reported second quarter earnings beat their estimates.  This sounds impressive, but according the Bank of America Merrill Lynch the stock price reactions have been muted (despite the S&P 500 pushing the 2500 level). 

Yesterday the Chicago PMI was lower than expectations, but Pending Home Sales was higher than expectations.  Nothing can go wrong if housing sales are strong, right?  We get more views into the US economy today and over the course of the week.  As this post goes live Personal Income was released (it appears to be a weak number) and Construction Spending and ISM come out 30 minutes into the trading day.

Finally, I usually yawn when this is pointed out, but yesterday VIX was higher for a good portion of the day yesterday.  The low yesterday was only 0.03 below Fridays low.  This despite the S&P 500 trading higher than Friday’s close during a good part of the trading day.  Admittedly the S&P 500 closed lower on the day and the futures are higher as I type this, but if VIX starts to find a floor that is higher than 10.00 we may look back at this as being an early signal of a stock market top. 

Overnight / Pre-Market

VIX is down 0.01 to 10.27 and the futures are basically flat.  S&P 500 futures up about 5.00 points.  Both Oil and Gold futures are lower.  Stocks closed slightly higher in Japan with the Nikkei 255 up 0.30%.  The FTSE 100 is up about 0.60%, Euro Stoxx 50 is also up about 0.60%, and VSTOXX is down 0.53 to 13.37. 

Looking Forward

There are still several stocks reporting earnings.  Here’s the names reporting after the close and before the open tomorrow.  All eyes will be on Apple after the close today.

Tuesday 08012017 Earnings

The full list of stocks with Weeklys reporting this week can be found here –

http://www.cboe.com/blogs/options-hub/2017/07/27/earnings-week-of-july-31-to-august-4

As mentioned there are also several economic numbers coming out this week.  The big focus, as it always is early in the month, will be the employment situation in July which is reported through the ADP Employment Change report early tomorrow and of course Non-Farm Payrolls on Friday.

CBOE Webcasts

August 2nd at 3:30 Central – Dan Passarelli discusses Tips and Tricks to Setting Up High Probability Option Trades

August 9th at 3:30 Central – Russell Rhoads discusses Option Strategies in a Low Volatility Environment

More information and registration at www.cboe.com/webcasts

Today in History

August 1, 1981 was the beginning of the end for radio as MTV began broadcasting.  For those that don’t know MTV stands for Music Television which is what MTV was all about for the first decade or so of existence.  The first video ever played was “Video Killed the Radio Star” by that one hit wonder band The Buggles (not to be confused with The Bangles).   

MTV Moon Man