tradeMONSTER: Trade free for 90 days

Options Trading News

May 24, 2013  Fri 7:14 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are falling again today as sentiment remains cautious.

S&P 500 futures are down about one-third of percent, following losses of half a percent to a full percentage point in Europe. Both are trying to recover in the last 30 minutes. Asian markets were mixed overnight, though Shanghai and Tokyo rebounded from yesterday's declines.

If the S&P finishes lower today, it would mark the first time this year that the index has declined in three straight sessions. While there is no news causing the weakness, the catalyst appears to be worry that an improving U.S. economy will cause the Federal Reserve to scale back monetary stimulus.

Adding to that concern is the possibility of profit-taking with the S&P 500 already up 16 percent so far this year. Investors may also be reluctant to put money to work before the long Memorial Day weekend. In addition, yesterday afternoon brought poor quarterly results or outlooks from companies including Salesforce.com and Sears.

The S&P 500 closed yesterday's session down less than one-third of a percent after dropping more than a full percent shortly after the open. Price performance within the market was unusually positive for a negative session, with aggressive sectors like small caps, transports, materials and energy all strong.

There have also been potentially bullish signs from Europe, with manufacturing data strong earlier in the week and Germany's Ifo survey of business sentiment better than expected today. The euro is advancing against the U.S. dollar, as well.

Other currencies are painting a more cautious picture as the Japanese yen rallies across the board. Oil is down about half a percent, though copper is trying to eke out gains. Precious metals are down fractionally.

In company-specific news, CRM fell 7 percent after earnings failed to beat expectations and its outlook for the current quarter trailed estimates. SHLD is down 14 percent after missing revenue estimates and reporting a much-wider loss than analysts had feared.

Semiconductor stock Marvell Technology and online-music company Pandora Media, on the other hand, are both up after quarterly strong results.
Share this article with your friends


Related Stories

SPX

Cramer: Tune out Fed naysayers

December 19, 2014

When we have inflation, the data-dependent Fed will switch. Until then, what's the point? Promote havoc? Slow down growth to make it so the hiring binge is over?

SPX

Stocks inch higher following rallies

December 19, 2014

S&P 500 futures are up 0.2 percent but below their highs earlier in the morning. Asia surged overnight, led by gains of about 2 percent in Tokyo and Shanghai. Oil is holding its ground as well.

SPX

Earnings reports fill quiet calendar

December 19, 2014

The only items today are quarterly results from CarMax, Carnival, and BlackBerry. Several events are packed into Tuesday and Wednesday because of next week's Christmas holiday.

SPX

Stocks rally again on Europe, oil

December 18, 2014

S&P 500 futures are up more than 1 percent, while most European indexes are gaining 2 percent. Asia was mostly higher overnight, led by a 2 percent gain in Tokyo.

SPX

Jobless claims, Philly Fed on tap

December 18, 2014

Today's economic calendar features initial jobless claims and the Philadelphia Federal Reserve's regional-activity index.

tradeMONSTER: Trade free for 90 days

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER