OptionsHouse

Options Trading News

September 25, 2013  Wed 7:11 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are down again today, but certain indicators remain bullish.

S&P 500 futures are signaling a fractional decline at the open, while most European indexes are falling less than half a percent. Japan and Shanghai posted similar losses in the overnight session.

There is, however, little sign that panic is setting in because more volatile, "high beta" markets such as Italy, Spain, and Thailand have held up much better than their larger counterparts. Oil, precious metals, and copper are higher as well.

The S&P 500 has declined four consecutive sessions, trying to find support after surging to record territory last week. Attention is now focused on the potential risk of a government shutdown as the fiscal year draws to a close on Sept. 30. But the main proponent of a shutdown, Sen. Ted Cruz (R-Texas), appears increasingly isolated.

In addition to political wrangling, the economic calendar is growing more active, with durable-goods orders today, global manufacturing data early next week, and the ever-important U.S. job report at the end of next week. After that, attention will focus on corporate earnings.

Bond yields are falling again today, continuing a trend that's taken hold since the Federal Reserve stunned investors last week by not tapering bond purchases. More declines could provide a boost to the key housing sector.

Brent crude oil rose a full 1 percent and West Texas Intermediate is up 0.6 percent. If that trend continues it could be potentially bullish for refiners, which tend to benefit from Brent climbing against WTI. Gold, copper and silver each rose about half a percent, and most agricultural foodstuffs are higher.

Trading is quiet in the foreign-exchange markets, with the euro and yen up slightly.

In company-specific news, automobile auctioneer Copart fell almost 9 percent after earnings missed expectations and the company opted not to convert into a real-estate investment trust. Ascena Retail is up 15 percent after reporting strong quarterly results. Clovis Oncology dropped 13 percent after Bloomberg reported it failed to attract a buyer and Noble rose 3 percent on news it would split into two companies.
Share this article with your friends


Related Stories

SPX

Cramer: 7 reasons for a selloff

June 30, 2015

At least seven issues would have driven us down at least 1 percent yesterday. And you can tack on another 0.75 percent from the moves by parties on both side of the Greek crisis.

SPX

Futures are rising after big drop

June 30, 2015

Stocks are trying to rebound from their worst drop in more than a year as investors look past the risks of Greece defaulting on its debt today.

SPX

Greece, consumer data on tap

June 30, 2015

Consumer confidence is the main economic report today, though the Greek debt crisis will remain a major concern. The Chicago Purchasing Managers Index will also be announced.

SPX

Stocks fall as Greek banks close

June 29, 2015

Equities are down sharply after negotiations fell apart over Greece's debt crisis this weekend, closing banks in the nation until a special referendum is held July 5.

SPX

Short holiday week is full of data

June 29, 2015

Today's economic news starts early with German retail sales and several European sentiment indexes. Pending home sales at 10 a.m. ET are the main U.S. report.

Invest Like a Monster - San Antonio: October 9-10

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Using synthetic positions vs. actual stock

We now know as absolute fact that a synthetic position is 100% identical to its real position counterpart. It is simply a function of mathematics. So, if they are totally identical then why would a trader ever use the synthetic alternative over the real position?

View more education articles »