Stocks and Binary Options Update: Movement Up Continues

Stocks and Binary Options Update - 01.16.14

After Monday’s sharp drop, equity indexes bounced back on Tuesday and Wednesday and now reside at all time highs again. The Nasdaq was the strongest yesterday, jumping higher by 0.76% while the Dow Jones Industrial Average advance 0.66% and the S&P 500 climbed 0.52%.

The bounce in stocks came about after an upbeat growth forecast from the World Bank and strong earnings announcements from US banks added to the optimism. Bank of America Corporation, (BAC) climbed over 2% on strong earnings figures for the fourth quarter, meanwhile J P Morgan Chase & Co, (JPM) jumped $3 to close at its highest level since April 2000. Wells Fargo & Company, (WFC) was also a strong performer, advancing 1.8% to an all time high, after the bank released record quarterly profits.

Gains were not limited to the financial sector as hundreds of stocks across the board finished in the green. Apple Inc, (AAPL) advanced over 2% on news China Mobile Ltd had received over 1 million orders for iPhones.

Adding to the positive earnings figures, the World Bank released its forecast of economic growth and is expecting economic output from the richest nations to grow at 2.2%, revised upwards from it’s original 2%. The IMF also released positive statements about global growth and, Head of the Bank, Christine Laggard reiterated that it expects momentum from 2013 to carry forward into the first half of 2014 at least.

Today

Today, traders will be preparing themselves for US CPI numbers and initial jobless claims with Year on Year CPI expected at 1.7%. However, earnings announcements will likely be the biggest market mover and we will see numbers from American Express, Citigroup Inc and Goldman Sachs amongst others.

Dow Jones Industrial Average – UP

Stock markets are on a one way street right now so binary options traders should continue to bet UP. Yesterday, the Dow opened well above its pivot and moved higher throughout the day, climbing past the second resistance by the end of the trading session. Today, we can expect to see earnings numbers from American Express Company, (AXP), EPS is expected to come in at 1.25, and Citigroup Inc, (C), with EPS expected at 0.96. We will also see earnings for Bang & Olufsen, (BO), Goldman Sachs Group Inc, (GS) and Intel Corporation, (INTC). Clearly, from what we have seen so far, the banks will be closely watched and if the past couple of days have been any guide we should see some more strong figures today and therefore some more solid gains.


Gold – UP

Yesterday, gold opened below its pivot and found some distraction at the first support before settling around $1240. Gold looks like it is slowing of momentum at these levels and another good day for earnings announcements could see the metal lurch downwards. However if CPI figures come out higher than expected, gold could rally temporarily. Binary options traders should take a chance on stronger inflation figures and bet up on the precious metal.