OptionsHouse

Options Trading News

September 28, 2012  Fri 7:11 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
U.S. stock futures are pointing lower as the S&P 500 consolidates at its highest levels since before the 2008 subprime-mortgage crash.

The index is down by less than 0.5 percent in early trading, following declines of similar magnitude in Europe.

The big news came yesterday when Spain announced austerity measures to counter yawning deficits, and now attention is turning to a stress test of the nation's banks and to Paris, where the government wants to hike income taxes despite rising unemployment. France's CAC-40 index fell almost 1 percent, making it the biggest loser in the region.

Asian markets were little-changed in the overnight session. Shanghai was the biggest gainer, rallying more than 1.4 percent as Chinese stocks continue to rebound from long-term lows.

The story now is one of consolidation after many anticipated headlines, such as the Spanish budget, have come and gone. While the economic picture has darkened in recent weeks, attention will soon shift toward the approach of U.S. corporate earnings season in October.

Volatility is also at long-term lows, and the S&P 500 yesterday hit resistance around 1450--a support level from earlier in the month. That could make some chart watchers expect sideways movement for the time being rather than new highs, especially with the index back to levels last seen in January 2008.

Commodities are showing a mild trend toward risk this morning despite the weakness in equities. Oil, silver, and copper are up nearly 0.5 percent, and natural gas and gasoline prices continues to climb. Platinum is standing out with a gain of more than 1 percent, while most agricultural foodstuffs are lower.

Currency exchange rates are muted, with the euro slightly higher against the U.S. dollar. Most currency pairs show little change.

In company-specific news, Research In Motion is likely to be active after revenue beat expectations and its quarterly loss was narrower than consensus estimates. Cash levels at the company, down more than 50 percent this year, rose as well, sending RIMM higher by about 15 percent.

Industrial-products company AZZ is also surging after its results crushed expectations and management raised guidance. Nike is falling after orders disappointed investors.
Share this article with your friends


Related Stories

SPX

Cramer: Possible signs of flash crash

January 23, 2015

The insanity and inanity of these market moves wrecks confidence and wants everyone to pay less for stocks--with the exception of the pure domestic plays.

SPX

Stocks hold gains after ECB move

January 23, 2015

S&P 500 futures are up 0.2 percent, while Germany and France led the winners across the Atlantic with gains of roughly 2 percent. Most Asian indexes rose about 1 percent in the overnight session.

SPX

Calendar is quiet before busy week

January 23, 2015

Today's calendar is relatively quiet, with attention potentially turning toward Greek elections this weekend. Existing home sales at 10 a.m. ET are the only U.S. data scheduled for release.

SPX

Futures rise on ECB stimulus hopes

January 22, 2015

S&P 500 futures are up 0.5 percent, while trading is mixed across the Atlantic. Higher-debt countries such as Italy and Spain gained, though Germany declined slightly.

SPX

ECB decision dominates calendar

January 22, 2015

The monetary-policy statement is due at 7:45 a.m. ET, followed by a press conference with ECB President Mario Draghi 45 minutes later.

OptionsHouse

Premium Services

Free Webinar

Option Money Machine Winter Classic

Education & Strategy

Rolling in possibilities!

First of all, we want to wish everyone a happy, healthy, and prosperous New Year!  Our plan was to get...

View more education articles »