Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 15, 2013  Tue 7:15 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are range-bound today as investors anticipate a resolution to the deadlock in Washington.

S&P 500 futures are down fractionally, reversing earlier gains after Citigroup missed estimates. European indexes are climbing by about 1 percent after Germany's Zew survey of investor confidence rose to a three-year high.

Asian markets were mixed but modestly higher, led by Australia, Taiwan and Hong Kong. Gold and silver plunged, reflecting confidence that politicians will raise the United States debt ceiling soon.

Two days remain before the world's biggest economy reaches the statutory limit on its borrowing. Lawmakers have been unable to reach an agreement on raising the ceiling, though senators yesterday were hopeful that a deal would emerge today.

The S&P 500 pulled back to its 100-day moving average last week on worries about the debt situation, but then bounced after House Republicans met with President Obama. The index is up 3.9 percent from those lows in just the last four sessions. International markets have been even stronger during that time as investors find value in countries such as Thailand, India, and Brazil.

Our researchLAB market-analysis tool also shows continued strength in semiconductor-related stocks, steelmakers, and companies that provide office supplies and equipment. Precious metals, ocean shippers, and Chinese Internet companies have lagged.

Attention will now focus increasingly on corporate earnings. Financial giant C is down about 1 percent this morning after quarterly profit and revenue missed expectations. Coca-Cola matched estimates, while Johnson & Johnson beat consensus numbers and raised full-year guidance. Today's big names after the closing bell include semiconductor maker Intel and Internet giant Yahoo. The only economic report on the calendar is the New York Federal Reserve's Empire manufacturing index at 8:30 a.m. ET.

Most other commodities are negative in addition to the 1 percent drop for gold and the 3 percent plunge in silver. Oil is down more than half a percent, led by Brent crude, which could hurt refiner stocks. Copper is down a similar amount and agricultural products are mostly negative.

The euro is also down against the U.S. dollar as hope of a debt deal lifts the greenback. The Japanese yen is modestly higher across the board, which reflects a certain degree of risk aversion.

In other company-specific news, software maker Teradata and retailer Coldwater Creek are indicated sharply lower after reporting weak quarterly results. Packaging Corporation of America is up more than 1 percent after earnings and revenue beat expectations.
Share this article with your friends


Related Stories

SPX

Trade bets on big gains in S&P 500

October 31, 2014

A large trade is looking for gains of more than 10 percent in the benchmark index, which has been running higher from its recent low in the last two weeks.

SPX

Stocks rally on Japanese stimulus

October 31, 2014

S&P 500 futures are up a full percentage point, placing the index on track for its first move above 2000 in more than a month. The biggest move occurred in Tokyo, where the Nikkei surged almost 5 percent.

SPX

Calm before storm in economic data

October 31, 2014

Today brings a handful of events, followed by a heavy calendar of economic news next week that culminates in the non-farm payrolls report.

SPX

Stocks stay lower after GDP report

October 30, 2014

S&P 500 futures are down half a percent, following declines in Europe and commodity markets.

SPX

GDP, jobless claims lead agenda

October 30, 2014

Today's big data report is the first estimate for third-quarter gross domestic product at 8:30 a.m. ET. Economists expect growth of 3 percent.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinar Series

The 100K Challenge

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER