Options Trading News

January 24, 2013  Thu 7:15 AM CT

Stocks are mixed this morning as the market digests bad news from Apple but positive economic data overseas.

S&P 500 futures are down by about 0.2 percent, while the Dow Jones Industrial Average us up slightly. The big move is on the Nasdaq, which is down by more than 1 percent after AAPL issued a disappointing revenue outlook.

Europe is little-changed, while Asian markets are mixed. Japan's Nikkei rallied more than 1 percent as the yen continued to weaken, while investors took profits in Shanghai. Commodities are mostly lower.

Stocks have been melting higher since late December after politicians in Washington reached a deal to avoid painful tax hikes and spending cuts. Attention has been shifting since then to economic growth in the United States and abroad, a trend demonstrated last night when China's manufacturing purchasing managers index came in slightly better than expected.

European data was also positive, with German PMI beating forecasts and climbing to its highest level in a year. A similar report for the broader Eurozone was strong as well.

Investors must now decide whether to keep taking risk after the S&P 500 closed yesterday at its highest level in more than four years or whether to take profits. AAPL's guidance is giving a reason to sell. Key iPhone suppliers including Cirrus Logic and Skyworks Solutions, are following to the downside. (See researchLAB for more.)

Other technology companies are also falling. Mellanox, a provider of network infrastructure, and chip maker Altera issued weak outlooks, sending MLNX down by 20 percent and ALTR down by 6 percent. Logitech, which makes computer peripherals, fell 7 percent after revenue missed expectations. Netflix and F5 Networks are bucking the trend after issuing strong forecasts.

Nokia, which has more than doubled since July, is down about 5 percent after announcing that it would forgo its quarterly dividend to save cash.

Foreign-exchange and commodity markets are painting a mixed-to-bearish picture. The euro is slightly higher, but the U.S. greenback is gaining against the Canadian and Australian dollars. Those currencies are usually associated with risk appetite, so it's a sign of caution when they fall. The yen, which moves in the opposite direction, continued to decline, supporting the bulls.

Oil is up slightly, making it the only major commodity to register gains. Agricultural foodstuffs are lower across the board, while silver is especially weak.

Big earnings reports after the bell today include Microsoft, Juniper Networks, and AT&T.
Share this article with your friends

Related Stories


ISM services lead quiet agenda

October 5, 2015

The agenda quiets this week, though quarterly earnings will begin to flow. European retail sales are the first event early in the session and may have affect sentiment.


Stocks drop after weak jobs report

October 2, 2015

S&P 500 futures are down more than 1 percent after non-farm payrolls missed forecasts. Bonds and gold moved higher.


Monthly job report leads calendar

October 2, 2015

Due at 8:30 a.m. ET, the report is expected to show that 205,000 jobs were added last month, up from August's 173,000 gain.


Stocks higher before ISM report

October 1, 2015

S&P 500 futures are up 0.2 percent but well below their pre-market peak. Europe has traded similarly, with Germany turning negative while France and Italy are up about 0.8 percent.


ISM manufacturing leads agenda

October 1, 2015

Economists are looking for an ISM reading of 50.6, down from 51.1 in August. Natural-gas inventories round out the agenda at 10:30 a.m. ET.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »