Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 24, 2013  Thu 7:15 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
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

SPX

Futures follow Europe, IBM lower

October 20, 2014

S&P 500 futures are down about 0.2 percent. Frankfurt, Paris, and London are all down more than 1 percent amid poor quarterly results, weak trade numbers, and persistent deflationary pressures.

SPX

Earnings continue to lead agenda

October 20, 2014

Halliburton, VF Corporation, Valeant Pharmaceuticals, and Peabody Energy report this morning. Apple, IBM, and Texas Instruments follow in the afternoon.

SPX

Stocks rebound after halting selloff

October 17, 2014

S&P 500 futures are up about 1 percent, and European indexes are higher by 1 to 2 percentage points. Most Asian markets fell overnight as bearishness from the recent selloff lingered. Oil's rebound continues.

SPX

GE earnings, housing data on tap

October 17, 2014

The Commerce Department will release September housing starts and building permits, and the University of Michigan will report its consumer-sentiment index.

SPX

Stock futures fall as bears return

October 16, 2014

S&P 500 futures are down about 1.3 percent. The bloodletting is even worse across the Atlantic, with losses ranging from 1.9 percent in Frankfurt to almost 4 percent in Madrid.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Analyzing a bipolar market

Economics hinges on the tenet that people, including investors and traders, act rationally and in their own best interests. But...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER