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 slip before Fed, Scotland

September 15, 2014

Stocks are edging lower as investors prepare for the Federal Reserve's announcement and Scotland's independence vote later in the week.

SPX

Fed meeting looms large this week

September 15, 2014

The Federal Reserve's meeting on Wednesday dominates this week's calendar, but there are a handful of other items.

SPX

Stocks drift before retail sales

September 12, 2014

S&P 500 were fractionally positive but are now down less than 0.1 percent. European markets are little-changed, while Asia was mostly higher overnight.

SPX

Retail, consumer data on docket

September 12, 2014

Today's economic agenda focuses on the U.S. consumer, with retail sales at 8:30 a.m. ET and consumer sentiment at 9:55 a.m. ET.

SPX

Commodities weigh down futures

September 11, 2014

S&P 500 futures are off 0.3 percent, while economically sensitive products like oil and copper are down more than 1 percent. Europe is fractionally lower, and most Asian indexes also saw small declines.

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

When to listen (and not talk)

Success is often built on listening. I just spent a few days on vacation with the family, with a number...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER