tradeMONSTER: Trade free for 90 days

Options Trading News

August 20, 2013  Tue 7:15 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
U.S. stock index futures have reversed earlier losses after Home Depot reported surprisingly strong quarterly numbers this morning.

The home-improvement giant beat earnings and revenue estimates while raising its outlook, boosting shares by more than 3.3 percent in pre-market trading. Best Buy and J.C. Penney are also higher after reporting this morning, by more than 12 percent and 2.5 percent respectively.

S&P 500 futures and Nasdaq 100 contracts are up about 0.25 percent at the time of this writing. Both had been in the red before the three retailers released their numbers.

European indexes are down across the board but have improved with the turnaround in U.S. futures. France's CAC is down about 1.2 percent, Germany's DAX is off 0.7 percent, and the U.K. FTSE is lower by about 0.4 percent.

Asian equities were hit hard overnight, led by declines of 2.6 percent in Japan's Nikkei and 2.2 percent in Hong Kong's Hang Seng. Markets across the region sold off on fears that emerging-market assets would suffer from tighter monetary policy by the Federal Reserve.  

Commodities are mostly lower this morning with crude oil down nearly 0.9 percent, approaching the $106 level. Gold and silver are lower by about 0.8 percent and 0.3 percent respectively. Copper is down slightly but well off its lows.

The dollar is down against most major currencies. It is lower against the Japanese yen, which is usually bearish for equities.

U.S. stocks are trying to snap a five-day losing streak that has brought major indexes to important technical junctures. Yesterday the S&P 500 posted its lowest close since July 8 and broke another level of support, which is now at 1600. That sent the CBOE Volatility Index up more than 5 percent and back above the 15 level.

Attention now turns to the Chicago Fed National Activity Index, which will be released at 8:30 a.m. ET. The Fed's economic data is being watched closely for clues that could indicate the direction of the central bank's monetary policy. To that end, tomorrow afternoon's release of the Federal Open Market Committee's minutes from its last meeting will be crucial.

Tomorrow will also see more earnings results from retailers when Lowe's and American Eagle Outfitters announce their numbers in the morning. Toll Brothers will also report tomorrow, providing further insight into the state of the housing market.
Share this article with your friends


Related Stories

SPX

Stocks rebound before Christmas

December 22, 2014

S&P 500 futures are up 0.2 percent, while most of Europe advanced more than half a percent. Asia was broadly higher overnight, led by gains of more than 1 percent in Mumbai and Hong Kong.

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.

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

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

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