Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 10, 2012  Wed 7:13 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are falling for a third day as indexes drift near long-term highs with no strong catalysts this week.

S&P 500 futures are fractionally higher, following losses of less than half a percent in Europe. Declines were more dramatic in Asia, where diplomatic tensions between Japan and China continue to weigh on confidence.

Early last month, the S&P 500 broke out above its trading range from 2008 and has been consolidating since then. The move followed an unexpected rally since June after a steady drumbeat of overseas worries failed to sink share prices. It's been drifting in range since that breakout, supported by assurances from central bankers, and now investors are preparing for a weak earnings season thanks to slowing global economy.

They got a first taste of those results last night when aluminum giant Alcoa reported better-than-expected profit and revenue. Management, however, said it now expects global demand to grow by just 6 percent versus its earlier 7 percent estimate. AA initially rose slightly but is now fractionally lower.

Volatility is also very low in the commodities, but the tone is only mildly negative. Crude oil, copper, and silver are fractionally lower, but natural gas and gasoline are both higher by half a percent. Most agricultural foodstuffs are down modestly. The biggest decline is in platinum, down more than 1 percent, on signs that lingering unrest in South Africa could be nearing an end.

Trading in the foreign-exchange market is more positive. Currencies associated with risk appetite, namely the Australian and Canadian dollars, are higher while the yen is lower. The euro is little-changed and continues to consolidate in a range following a big rally in August and September.

Elsewhere in company-specific news, metals producer Ferro is down by 10 percent after cutting guidance, while fast-food giant Yum Brands rose 4 percent after a strong earnings report.
Share this article with your friends


Related Stories

SPX

Stocks inch higher amid earnings

April 21, 2014

Stocks are inching higher again as investors anticipate a deluge of first-quarter results. S&P 500 and Nasdaq 100 futures are up slightly so far this morning.

SPX

Earnings are docket's main focus

April 21, 2014

Attention continues to focus on corporate earnings this week. Halliburton, Hasbro, and SunTrust Banks get the ball rolling this morning, followed by Netflix and Rambus after the close.

SPX

Options and high-frequency trading

April 18, 2014

There has been much talk lately of high-frequency trading and what it means to the markets and retail traders. The big issues and arguments all point in favor of options.

SPX

Stocks in range as earnings flow

April 17, 2014

This morning's big companies--Goldman Sachs, General Electric, Morgan Stanley, and PepsiCo--are all trading higher after beating estimates.

SPX

GE, Goldman, jobless claims on tap

April 17, 2014

Earnings and jobless claims are the main events on today's calendar. Trading will likely be light with markets closed tomorrow for Good Friday.

Premium Services

Education & Strategy

When cash is king (of hedging)

Whether your trades are winning or losing, it can be tempting to add to your positions. But in either case,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER