Alphabet and Microsoft earnings due after the bell, options traders in focus
A report says the market's mini rally faces a key test when tech giants Alphabet and Microsoft report results after the close.
By BBCorp
What happened
A report said that options traders were positioning ahead of quarterly results from Alphabet and Microsoft, both scheduled to report after the closing bell.
The report framed the two releases as a key test for the market's recent mini rally, with attention on what options pricing implies for the reaction in the two mega-cap technology names.
Why it matters
Companies of this size carry heavy weightings in the main US equity benchmarks, so their results and guidance can move index levels well beyond the individual shares. When a rally has been led by large technology names, earnings from those same names become a focal point for broad index volatility.
Options markets are often used to gauge how large a move participants are prepared for around a scheduled event. Shifts in US equity sentiment can also feed into the dollar, and from there into gold and other dollar-priced assets, as portfolios adjust risk exposure.
US stocks
Gold