Learn the trade here. Make it on tradeMONSTER

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

Large spread hedges S&P 500

October 22, 2014

A put spread in the S&P 500 Index is looking at the possibility of a huge market decline by early next year. This is very likely what is known as a "tail-risk hedge."

SPX

Stocks pause after quick rebound

October 22, 2014

S&P 500 futures are essentially flat, while most of Europe is higher by less than half a percent. Most of Asia rallied overnight, led by a 2.6 percent surge in Tokyo.

SPX

Earnings, mortgage data on docket

October 22, 2014

Boeing, Dow Chemical, EMC, Ingersoll-Rand, General Dynamics, and Norfolk Southern announce their results before the opening bell.

SPX

Stocks higher on sentiment, earnings

October 21, 2014

S&P 500 futures are up 0.6 percent, while the Nasdaq advanced 0.9 percent after strong iPhone sales caused Apple to beat expectations. European markets advanced by 1.5 to 2.3 percent.

SPX

Agenda keeps focus on earnings

October 21, 2014

McDonald's, Coca-Cola, Lockheed Martin, Verizon Communications, United Technologies, and Harley Davidson release their numbers this morning.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER