Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 16, 2013  Wed 7:13 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are poised to decline from historical highs today as caution reigns in global markets.

S&P 500 futures have been weakening in the last hour and are now down by about 0.25 percent, following similar losses in Europe. Asia was mostly lower as well, led by a 2.5 percent plunge in Tokyo's Nikkei index.

Investors have spent the last four sessions debating whether to keep buying after the index returned to a five-year intraday high or to wait for a pullback. Traders appear to be waiting for the oncoming wave of quarterly reports, with a heavy focus on banks and other financial names this week.

Another factor weighing on sentiment today is a snapback rally by the Japanese yen, which tends to move in the opposite direction as stocks and commodities. The yen is higher across the board today, corresponding with drops in the euro, Australian dollar, and Canadian dollar.

Oil has relinquished small gains this morning, while copper and other metals are down by 0.5 percent to 1 percent. Most agricultural foodstuffs are modestly higher.

Financials are mostly lower after reporting results. JP Morgan fell 1 percent after its profit beat expectations but revenue missed consensus. U.S. Bancorp issued similar numbers, though its net income may not be comparable with estimates because it was affected by unusual items. Bank of New York Mellon fell 3 percent.  

Goldman Sachs bucked the trend with top-line and bottom-line results that were much better than expected, sending its shares higher by 2 percent. Citigroup and Bank of America follow with their results tomorrow morning.

In other company news, Boeing is down about 4 percent after major Japanese airlines grounded its new Dreamliner after one of planes was forced to make an emergency landing. Chipotle Mexican Grill fell about 9 percent after pre-announcing weak fourth-quarter results, while Vera Bradley may climb after raising guidance.
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.

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