Options Trading News

May 24, 2013  Fri 7:14 AM CT

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


J&J, JP Morgan, Intel earnings due

October 13, 2015

Another speech by a Federal Reserve official is on tap for this morning, but attention will quickly turn to quarterly results as the season begins in earnest.


Futures little-changed after rallies

October 12, 2015

Stock-index futures are little-changed this morning after last week's rallies, as U.S. trading is expected to be thin on this Columbus Day federal holiday.


Three Fed speeches on calendar

October 12, 2015

The markets are open on today's Columbus Day session, but no major economic releases are scheduled as attention turns increasingly to corporate earnings.


Rally continues, lifted by commodities

October 9, 2015

S&P 500 futures are up 0.2 percent, while most of Europe is higher by more than 1 percent. Tokyo and Shanghai led Asia with gains of more than 1 percent as well.


Docket quiet until earnings Tuesday

October 9, 2015

Nothing is scheduled for today or Columbus Day on Monday, though companies may pre-announce results as earnings season approaches.


Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »