Learn the trade here. Make it on tradeMONSTER

Options Trading News

February 21, 2013  Thu 7:14 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are down this morning as negative headlines overseas add fuel to yesterday's bearish close.

S&P 500 futures are falling by about one-third of a percent, while most indexes in Europe are down by 1 percent to 2 percent. Similar losses occurred in Asia, led by a 3 percent decline in Shanghai.

Chinese authorities are cracking down on real-estate speculation, while European manufacturing data showed a greater-than-expected contraction in the region's manufacturing sector. Those news reports follow minutes from the Federal Reserve yesterday when some policymakers wanted to halt the policy of aggressive asset purchases in the United States. Housing data was also weaker than expected, triggering the biggest drop since mid-November.

Sentiment had been firmly bullish since the end of 2012, when politicians in Washington struck a deal to avert sharp tax increases. Equities drifted higher for the next six weeks as companies reported quarterly results and economic data showed steady improvement.

Those gains slowed more recently as the S&P 500 paused at a long-term resistance from late 2007. Treasury yields, which tend to follow share prices, have also reached levels where traders would logically expect a pause or reversal.

Investors also now face the potential return of political risk as lawmakers in the U.S. attempt to prevent spending cuts under so-called sequestration and as voters go to the polls in Italy this weekend.

Oil and copper, which track global economic sentiment, are down by more than 1.3 percent, agricultural foodstuffs are lower across the board. Foreign-exchange markets are showing a similar pattern of risk aversion, with the euro lower and the safe-haven Japanese yen higher across the board.

In company-specific news, retail giant Wal-Mart Stores is up slightly after a lower tax rates caused earnings to beat expectations. Construction and engineering firms Fluor and Quanta Services are both lower: FLR after revenue missed consensus and PWR on a weak outlook. Enterprise software company Pegasystems is up 20 percent on a strong report.
Share this article with your friends


Related Stories

SPX

Jobless claims, Exxon results due

July 31, 2014

Initial jobless claims and Exxon Mobil's earnings are the main events on today's calendar. Economists forecast that 310,000 Americans sought unemployment benefits for the first time.

SPX

Stocks rally on strong GDP growth

July 30, 2014

S&P 500 futures accelerate to the upside after second-quarter economic growth and ADP's payroll report beat estimates.

SPX

GDP, Fed, job data lead calendar

July 30, 2014

ADP's private-sector payrolls report for July gets the ball rolling at 8:15 a.m. ET, followed 15 minutes later by second-quarter GDP. The Fed announces its monetary policy at 2 p.m. ET.

SPX

Stocks inch higher ahead of data

July 29, 2014

S&P 500 futures are up more than 0.1 percent, and the Nasdaq is higher by almost 0.2 percent. Europe shows gains of about 0.5 percent, similar to those in Asian markets overnight.

SPX

Home prices, consumer data on tap

July 29, 2014

The Case-Shiller index of home prices, scheduled for release at 9 a.m. ET, is expected to show an increase of 10 percent in May. Consumer confidence follows an hour later.

Premium Services

Free Webinars

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER