OptionsHouse

Options Trading News

August 15, 2013  Thu 7:00 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
U.S. stock futures are pointing to a lower open after disappointing quarterly results by two industry leaders.

Cisco and Wal-Mart are down about 7 percent and 3 percent respectively following their respective reports last night and this morning. Attention now turns to today's barrage of economic data, which includes initial jobless claims, consumer prices, and the Empire State manufacturing index, all scheduled for release at 8:30 a.m. ET.

Stock indexes are at an important juncture as traders consider whether to continue their bullish momentum of recent months or pull back amid uncertainty over a potential shift in the Federal Reserve's monetary policy. Today's economic data will be examined closely for clues about the future of quantitative easing, as will a speech by St. Louis Federal Reserve President James Bullard at 8:15 a.m. ET. (See related story)

S&P 500 futures are down about 0.6 percent, while Nasdaq 100 contracts are lower by about 0.7 percent at the time of this writing. Both have been weakening throughout the morning, as have overseas indexes.

The U.K. FTSE is losing more than 1 percent, while Germany's DAX and France's CAC are falling about 0.5 percent. Japan's volatile Nikkei led Asia's losses with a 2 percent drop overnight as the Shanghai Composite dropped nearly 1 percent.

The U.S. dollar is down against other major currencies, including the euro and the Japanese yen. A rising yen, traditionally viewed as a "safe haven" asset, is usually bearish for equities.

Crude oil is up about 0.4 percent, while metals are mixed. Spot gold is flat while silver is showing a slight gain, but copper is down about 0.4 percent.

Metals and materials have been rising recently, and mining companies have been leading the way after being beaten down mercilessly all year. Gold and silver are back above their 50-day moving averages, while industrial metals have gotten a boost from recent positive economic data from China. Despite copper's decline today, it is still up sharply since late July.

The retail sector will also likely be in focus today after the weak reports from market leaders Wal-Mart this morning and Macy's yesterday. Traders will be focusing on technology as well to see if Cisco's numbers will counter the positive effects of Apple's resurgence in the sector.
Share this article with your friends


Related Stories

SPX

Stocks fall amid Yemen airstrikes

March 26, 2015

S&P 500 futures are down 0.7 percent, while the Nasdaq remained weaker with a drop of 1 percent. European indexes slid 1-2 percent, and Asia was broadly lower overnight. Oil and the yen are surging.

SPX

Jobless claims lead quiet calendar

March 26, 2015

The report at 8:30 a.m. ET is expected to show that 290,000 Americans sought unemployment benefits for the first time, down slightly from 291,000 the previous week.

SPX

Stocks edge lower, drifting in range

March 25, 2015

S&P 500 futures are down 0.1 percent as investors wait for the next catalyst. European stocks are lower as well, while Asia was little-changed overnight.

SPX

Stocks inch higher, lifted by Europe

March 24, 2015

S&P 500 futures rose 0.2 percent. They're following the move across the Atlantic, where Markit's purchasing managers index rose more than expected to its highest level in almost four years.

SPX

Cramer: Time to ring cash register

March 23, 2015

Let's not forget that greed is bad, not good. We have such fabulous gains here and you have to ask yourself if you have taken anything off the table.

Invest Like a Monster - San Diego: June 26-27

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Short Gamma

Last week, we talked about long Gamma. We said that long gamma is acquired by purchasing options and when you...

View more education articles »