Breaking the ice on free-trade era?

Charles Schwab this past week launched the first lob in what could be a lucrative race for investors.

The brokerage launched several exchange-traded funds that its clients can buy and sell online with zero commission.

"This tactic could break the ice on a new free-trade era, eventually leading to free trading for even stocks and bonds," Fox-Pitt Kelton analyst David Trone wrote in a recent report.

The thinking is that Charles Schwab will win enough new customers to cover the lost revenue from trading commissions.

That could force rivals to drop commissions as well, for ETFs at first and possibly more types of investments later on.

Indecision

Stocks really have been volatile recently. Look at the 50-day moving average of the S&P 500, for example. It shows the average value of the index over the prior 50 days. During a recent three-day stretch, the index closed below its 50-day moving average, then rebounded to close more than 1 percent above the average then tanked again to close more than 1 percent below the average. Going back to 1928, it's the first time that's happened, according to Bespoke Investment Group.

Presidential returns

President Obama has already enjoyed a stronger stock market during his first year in office than presidents typically get.

Things may get even better, if the market follows its historical trend of rising in November and December. Since 1933, presidents have overseen an average 4.4 percent rise in the S&P 500 during the first year of a term, according to S&P data.

The Associated Press