That stock News

NEW YORK--U.s. stocks can see large swings in the inconvenience this week over a distance of bad new volatility index is regarded as too low levels.

Investors will also face a blizzard of compensation, including many analysts believe will continue to support the rally that began in septembre.Mais course, compensation or Outlook disappointments could trigger a strong sell-off.

In addition, the market is likely to continue to obtain support from the expectations of investors that the Federal Reserve will take steps more to stimulate the economy, in what is called quantitative easing or "QE2."The US Federal Reserve should disclose its initial commitment under the QE2 meeting of November 2-3.

The Chicago Board of Options Exchange Volatility Index VIX, widely used for measuring the levels of anxiety of investors, tonnage fell 2.54% Friday to close to 18.78, its lowest level since avril.Le VIX, which rose to nearly 50 in may, has been around or less than 20 years for the past two weeks.

Options traders note that there is a clear sign of extreme convenience in the VIX and is more vulnerable than the forward market.

"The market volatility index will be much more volatility (this week) since it is now, at low levels", says Steve Claussen, on-line investment Chief Strategist at brokerage OptionHouse.com.

The VIX, widely known gauge fear of Wall Street, is a forecast risk 30-day volatility in stock markets .the ' index generally has an inverse relationship with the benchmark s & P as he retraces the investor pricing option are willing to pay as protection on the underlying stocks.

Tuesday, the VIX jumped nearly 12% when stocks suffered their capacitie decline a day since August after a surprising increase in China.

New business scene
Earnings remain the Centre of attention this semaine.De many analysts predict that earnings will continue to support the market rally that October coup if more companies report strong results, which could strengthen the feeling, with hopes of easing from the Fed.

In the last week of October, 177 S & P 500 companies are due to report their balance sheets, of which seven are Dow components.Among them are Giants Exxon and Chevron energy giant Microsoft technology.

S & P 500 earnings should increase 28% for the third quarter of last year, at an estimated growth of 24% last week, according to Thomson Reuters data.

"Gains are supposed to be good (this) week thus... not look not bad news from here", said Peter Cardillo, Chief Economist of Avalon partners market in New York.

But Cardillo said that the new negative economic data could cause volatility in the market, as it would be a week before the meeting of November 2-3, Committee on federal and in the week before the mid-term elections.

Major economic data for next week including sales existing home, orders for durable goods and third quarter GDP.

Elliot Spar, market strategist for Stifel Nicolaus said options as a predatory can begin at the beginning of this week in preparation for the meeting of the Federal Reserve American and elections on November 2.

"For those who wait on the event"selling on the new"3 November, when the Federal Reserve Board concluded meeting to discuss the prospect of another series of quantitative easing, I think that predatory market will start during the week of October 25.

All three major indexes capped a third straight week of fine vendredi.Pour earnings week, the Dow Jones index and the S and P 500 each increased 0.6% while Nasdaq gained 0.4%.

Copyright 2010 Thomson Reuters.Cliquez on restrictions.

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