Latest news with #S&P500EqualWeightIndex
CNBC
4 days ago
- Business
- CNBC
The index to watch to decide if we are entering a new bull phase
Wall Street has its eye on the S & P 500 Equal Weight Index — which treats every stock equally — to gauge if the current market rally is a head fake or the start of a serious bull run. The Invesco S & P 500 Equal Weight ETF , known by its RSP ticker symbol, closed Friday at an all-time high. That sent the equal-weighted version of the broad market index — which gives less weight to buzzy technology names than the classic S & P 500 — to its first record since late November. "It will be an important chart to watch over the coming week," Rob Ginsberg, technical analyst at Wolfe Research, wrote in a note to clients over the weekend. "A breakout to new highs in the face of overbought conditions is something we would have to respect." RSP 5D mountain RSP over the last 5 days Because the RSP isn't concentrated in megacap technology names, investors see it as a better gauge of the health of the entire economy and stock market than the regular S & P 500. Given that, the RSP rising to an all-time closing high in tandem with the S & P 500 — which itself has marked a series of new all-time highs lately — gives some traders confidence that the current rally is more than a blip. "New highs for this ETF is a simple way to suggest price based market breadth is starting to improve," said Paul Ciana, Bank of America's technical strategist, in a Monday note to clients. The fund has a tailwind thanks to the head-and-shoulders formation etched out in its price chart, Ciana added. Similarly, Roth MKM chief technical strategist JC O'Hara said the equal-weighted index's recent performance is constructive for equity investors, even though the stock market may be due for a pause after the run up to record highs. The RSP pulled back about a half of 1% even after the trade deal President Trump reached with the European Union in Scotland on Sunday. "The expansion of breadth in the middle of earnings season widens the playing field for stock selection," O'Hara wrote to clients. That "should be seen as bullish behavior." Wolfe's Ginsberg also raised the idea of the playing field shifting. Outperformance of sectors that are considered more defensive, for example, can show a market leadership rotation is in the cards, he said. The RSP surpassing its November record close can signal a return to broadly bullish market conditions. Investors sent stocks soaring that month in the wake of Trump's re-election, which many saw as heralding an era of business deregulation. With Friday's record-setting move, the RSP is higher by more than 8% on the year. Yet the S & P 500 has outperformed, rising more than 9% in the same period.
Yahoo
30-04-2025
- Business
- Yahoo
Cboe Global Markets (BATS:CBOE) Expands Digital Asset Offerings With New Bitcoin Futures
Cboe Global Markets recently launched the Cboe FTSE Bitcoin Index futures, reflecting their expansion into digital asset derivatives. This launch, along with the introduction of S&P 500 Equal Weight Index options and leadership changes, contributed to a robust product lineup. Despite a sluggish GDP report affecting broader markets, which saw a 5.2% rise over the last seven days, Cboe's 6.39% price move this past quarter aligned with broader market trends, rather than diverging significantly. These developments, therefore, supported the company's positive trajectory amidst these broader economic signals. We've discovered 1 risk for Cboe Global Markets that you should be aware of before investing here. Uncover 13 companies that survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. The introduction of the Cboe FTSE Bitcoin Index futures and S&P 500 Equal Weight Index options could potentially enhance Cboe Global Markets' revenue and earnings forecasts by fostering increased trading volumes and attracting new participants to their platform. These developments, along with strategic leadership changes, may also further position the company to optimize operations and increase market share. Notably, Cboe has seen a total shareholder return of 136.28% over the past five years, highlighting significant long-term shareholder value creation despite recent headwinds. For context, its one-year return outpaced both the US market and the Capital Markets industry, underscoring its relative resilience and strength. The company's recent 6.39% quarterly price move reflects these initiatives while aligning closely with broader market trends. With current analyst forecasts assuming some adjustments, including a 16% annual decline in revenue, the integration of new products could offer a counterbalance by reinvigorating trading activity and revenue streams. However, projected earnings growth to US$999.1 million by 2028 amidst anticipated profit margin improvement suggests underlying confidence in the company's capacity to deliver enhanced financial outcomes. The current share price of US$214.07 shows proximity to the consensus price target of US$221.33, reflecting a view among analysts that the stock is reasonably valued, despite potential upside based on future performance expectations. As such, the recent product launches and strategic movements have tangible potential to influence financial results, remaining a critical aspect of the company's narrative going forward. Explore Cboe Global Markets' analyst forecasts in our growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BATS:CBOE. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
14-04-2025
- Business
- Yahoo
Cboe Begins Trading in S&P 500® Equal Weight Index Options on April 14, 2025
CHICAGO, April 14, 2025 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced it has launched for trading S&P 500 Equal Weight Index (EWI) options. The new options are the latest addition to Cboe's S&P 500 toolkit and provide investors additional choice and diversification opportunity through broad-based U.S. equity market exposure. The S&P 500 EWI (Bloomberg index ticker: SPW) is the equal-weight version of the S&P 500 Index, with each constituent of the S&P 500 EWI allocated a fixed weight of 0.2% of the index total at each quarterly rebalance. While including the same constituents, the S&P 500 EWI and the capitalization-weighted S&P 500 Index often differ in sector and factor exposures including smaller-cap vs. mega-cap stocks, momentum bias, and realized volatility. The S&P 500 EWI options are designed to provide different exposure and complement Cboe's S&P 500 Index (SPX) options, which are one of the most actively traded and liquid options in the world. Market participants will be able to utilize the S&P 500 EWI options to make directional trades based on their views of macro trends and shifts in equity market dynamics and for additional hedging and income-generating opportunities. "As investors turn to options at record levels to help manage U.S. equity market exposure and volatility, we are pleased to expand our S&P product suite with the launch of S&P Equal Weight Index options," said Catherine Clay, Global Head of Derivatives at Cboe. "We expect these options to cater to both retail and institutional investors looking to diversify and implement a variety of trading strategies, ultimately providing them greater choice and ability to tailor their exposure to fit their needs. Investors are increasingly seeking to gain more balanced exposure across the market, and with the indexing expertise of S&P Dow Jones Indices and demand for the capitalization-weighted SPX options, the S&P 500 Equal Weight Index is ideally suited to underlie these new options." Megan Morgan, Head of Market Structure at Belvedere Trading, said: "The addition of S&P 500 Equal Weight Index options by Cboe is timely and we are excited for the opportunity to serve as the Lead Market-Maker. We have long found value in the S&P 500 Index ecosystem and Cboe's trading floor, and as the market evolves, more tools in the toolkit are always welcomed." Danny Kirsch, Head of Options Trading and Strategy at Piper Sandler, said: "The performance of the S&P 500 Index relative to the S&P 500 Equal Weight Index has been a key topic in conversations around equity index exposure in recent years. By adding options on the S&P 500 EWI Index, Cboe is now allowing customers more ways to hedge risks and manage portfolios." The S&P 500 EWI options are based on 1/10th the value of the S&P 500 EWI (options ticker: SPEQX). With a standard contract multiplier of $100, the notional value of an S&P 500 EWI options contract would be approximately $63,200 as of market close on April 7. The mid-sized notional value potentially allows for a wider range of market participants to access the options. Similar to Cboe's other proprietary index options, S&P 500 EWI options are cash-settled and will have European-style exercise. Cash settlement eliminates concerns over physical delivery as profits and losses are settled as a debit or credit at expiration, and the European-style expiration removes the risk of early assignment and provides more certainty when implementing hedging strategies. On April 14, Cboe listed standard monthly options expiring on the third Friday. SPEQX options are available to trade during regular trading hours (RTH) between 9:30 a.m. ET and 4:15 p.m. ET. FLEX options are offered on SPEQX. Cboe plans to list PM-settled weekly options at a later date, pending regulatory approval. To learn more about the launch of the S&P 500 EWI options including additional contract specifications, visit here. About Cboe Global Markets, Inc. Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit Media ContactsCboe Analyst Contact Angela Tu Tim CaveKenneth Hill, CFA +1-646-856-8734 +44 (0) 7593-506-719+1-312-786-7559 atu@ tcave@ CBOE-CCBOE-OE Cboe®, Cboe Global Markets®, Cboe Volatility Index®, FLEX®, VIX®, and XSP® are registered trademarks of Cboe Exchange, Inc. or its affiliates. The S&P 500 Index and the S&P 500 Equal Weight Index are proprietary to S&P Dow Jones Indices LLC. S&P®, S&P 500®, The 500™, US 500™, SPX®, and SPXEW are trademarks of Standard & Poor's Financial Services, LLC and have been licensed for use with the S&P 500 Index and the S&P 500 Equal Weight Index by Cboe Exchange, Inc. Cboe Exchange's options on the S&P 500 Index and the S&P 500 Equal Weight Index are not sponsored, endorsed, marketed or promoted by S&P Dow Jones Indices and S&P Dow Jones Indices does not have any liability with respect thereto. All other trademarks and service marks are the property of their respective owners. Cboe products are not sponsored, endorsed, sold, or promoted by S&P DJI and S&P DJI shall have no liability in connection with the trading of any such products. Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Investors should undertake their own due diligence regarding their securities, futures and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein. Nothing in this announcement should be considered a solicitation to buy or an offer to sell any securities or futures in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction. Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation. Cboe Global Markets, Inc. and its affiliates, to the maximum extent permitted by applicable law, make no warranty, expressed or implied, including, without limitation, any warranties as of merchantability, fitness for a particular purpose, accuracy, completeness or timeliness, the results to be obtained by recipients of the products and services described herein, or as to the ability of the S&P indices to track the performance of the general market or any segment thereof, and shall not in any way be liable for any inaccuracies or errors. Cboe Global Markets, Inc. and its affiliates have not calculated, composed or determined the constituents or weightings of the securities that comprise the S&P indices and shall not in any way be liable for any inaccuracies or errors. Cautionary Statements Regarding Forward-Looking Information This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as "may," "might," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel; increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our global operations, growth and strategic acquisitions or alliances effectively; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty, investment, and default risks, associated with operating our clearinghouses; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing our business interests and our regulatory responsibilities; the loss of key customers or a significant reduction in trading or clearing volumes by key customers; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the accuracy of our estimates and expectations; and litigation risks and other liabilities. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings made from time to time with the SEC. We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. View original content to download multimedia: SOURCE Cboe Global Markets, Inc. Sign in to access your portfolio
Yahoo
03-04-2025
- Business
- Yahoo
Cboe Global Markets price target raised to $260 from $251 at BofA
BofA analyst Craig Siegenthaler raised the firm's price target on Cboe Global Markets (CBOE) to $260 from $251 and keeps a Buy rating on the shares. The increasingly uncertain macroeconomic and geopolitical backdrop produced 'ideal conditions for trading across asset classes,' says the analyst, who raised EPS for market structure stocks ahead of earnings from the exchange group. Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on CBOE: Disclaimer & DisclosureReport an Issue Cboe Global Markets plans to launch S&P 500 Equal Weight Index options on 4/14 Cboe Global Markets names Tim Lipscomb EVP, Chief Technology Officer Cboe Global Markets reports February trading volume Cboe Global Markets price target raised to $216 from $215 at Keefe Bruyette Cboe Global Markets price target raised to $233 from $218 at Oppenheimer Sign in to access your portfolio
Yahoo
27-01-2025
- Business
- Yahoo
Societe Generale Urges Shift to Secular Themes as DeepSeek AI Shakes U.S. Tech
Analyst sees investment opportunities as China's AI push rattles U.S. markets As the U.S. tech sector reacts to China's DeepSeek AI model, Societe Generale is advising investors to focus on long-term secular themes that emphasize America-First strategies, such as the S&P 500 Equal Weight Index, which has higher allocations to industrials, utilities, and financials over technology. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Analyst Manish Kabra noted that the "Magnificent 5"Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Alphabet's Google (NASDAQ:GOOGL) (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), and Meta (NASDAQ:META)have collectively added 700 points to the S&P 500 over two years. Without them, the index would be 12% lower today. Kabra downplayed concerns over DeepSeek AI's cost-efficient models, arguing that while they raise questions about U.S. hyperscalers' capital spending, cheaper AI production could still benefit the sector. He also cited Bernstein analyst Stacy Rasgon, who dismissed panic over DeepSeek's impact, stating its models are strong but not revolutionary. Kabra added that rising bond yields have contributed to market volatility, but a strong bond market should support the broader S&P 500. This article first appeared on GuruFocus. Sign in to access your portfolio
