tradeMONSTER: Trade free for 90 days

Options Trading News

September 24, 2013  Tue 7:15 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are lower today, continuing their longest slide in more than a month, amid caution about the political and monetary backdrop.

S&P 500 futures fell almost one-quarter of a percent, though most of Europe is posting a gain of less than half a percent. Asia fell slightly in the overnight session, but none of the major indexes lost more than 1 percent.

The S&P 500 ripped to an all-time high last Wednesday after the Federal Reserve stunned investors by refusing to trim monetary stimulus, but the benchmark index has fallen every session since. Another negative close today would mark the SPX's first consecutive four-session decline since Aug. 19.

Sentiment has turned more cautious since as politicians in Washington prepare to fight over the budget for the next fiscal year beginning Oct. 1. Sen. Ted Cruz (R-Texas) is trying to build support for a coalition that could lead to a government shutdown in the next week. There's also likely to be a battle over raising the country's debt limit, which needs to be done by about the middle of October.

Investors will watch comments at 1 p.m. ET by Esther George, the Kansas City Fed president, who is the central bank's most hawkish policymaker. Other items on the agenda include the Case-Shiller and FHFA indexes of home prices at 9 a.m. ET and consumer confidence one hour later.

The direction of interest rates could also impact price action in the stock market because bond yields have stalled at two-year highs in the last month. Our researchLAB market scanner has shown emerging strength in utilities and real-estate investment trusts during the same time. If the reversal in bond yields continues, it could benefit housing and utilities--even if the broader market declines.

researchLAB also shows buying patterns developing in new industries such as firearms, theaters, office furniture, and engineering. Motor homes, snowmobiles, casinos, and airlines have continued earlier strength.

Foreign-exchange trading remains cautious as the safe-haven Japanese yen gains and risk currencies such as the euro ad Australian dollar weaken. Commodities are somewhat bearish, with copper, silver, and gold all down about 1 percent. But oil is little-changed, and agricultural products are higher.

In company-specific news, software company Red Hat is down about 10 percent after billings missed estimates, suggesting that future revenue will be weak. Homebuilder Lennar is also down modestly despite reporting better-than-expected quarterly results. Facebook continued to defy gravity, climbing about 2 percent after getting upgraded to "buy" at Citigroup. Applied Materials gained more than 4 percent after announcing that it would acquire Tokyo Electron in an all-stock deal.
Share this article with your friends


Related Stories

SPX

Handful of events on holiday week

December 22, 2014

The only event scheduled for today is existing home sales for November at 10 a.m. ET. The next two days are more active than usual as the Chrismtmas holiday pushes several events forward.

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.

Invest Like a Monster - Las Vegas: March 13-14

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