OptionsHouse

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

Stocks retreat following big surge

August 28, 2015

S&P 500 futures are down 0.7 percent, matching the declines in Europe. Asian markets were positive overnight, with Shanghai rallying 5 percent and Tokyo up 3 percent.

SPX

European, spending data on tap

August 28, 2015

European indexes covering the industrial, business, and consumer sectors are due early in the session and could have some impact on trading.

SPX

Strong GDP boosts stocks further

August 27, 2015

S&P 500 futures rose 1 percent, resuming their rebound after economic growth and jobless claims beat estimates. Europe gained more than 2 percent, and Shanghai surged 5 percent.

SPX

Revised GDP takes center stage

August 27, 2015

The Commerce Department is expected to report that the economy expanded 3.1 percent between April and June, up considerably from its early 2.3 percent growth estimate.

SPX

Stocks try to rally again after selloff

August 26, 2015

S&P 500 futures are up 2.4 percent, adding to gains after durable-goods orders beat estimates. Europe also recovered. Asia was mixed, with Shanghai down again but Tokyo rallying about 3 percent.

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

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »