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

Earnings, data send stocks higher

July 24, 2014

Stocks are poised to set new records today, fueled by strong earnings and economic data. Investors are specifically reacting to blowout numbers from Facebook and strong global manufacturing numbers.

SPX

Jobless data, home sales on tap

July 24, 2014

Initial jobless claims are the first data to be reported on this side of the Atlantic, followed by the Chicago Purchasing Managers Index and new home sales.

SPX

Bulls keep nibbling as earnings flow

July 23, 2014

S&P 500 futurs are up about 0.1 percent this morning while most of Europe is gaining about half a percent. Most of Asia was little-changed overnight.

SPX

Boeing, Facebook lead calendar

July 23, 2014

Other big names reporting earnings today include Delta Air Lines, Dow Chemical, EMC, General Dynamics, Whirlpool, PepsiCo, AT&T, Qualcomm, Gilead Sciences, F5 Networks, CA, and Cirrus Logic.

SPX

Stocks climb on Ukraine, earnings

July 22, 2014

The gains come after pro-Russian separatists in eastern Ukraine handed over flight recorders from a Malaysian airliner that crashed in their territory last week.

Premium Services

Free Webinars

Education & Strategy

How to navigate earnings season

We are embarking on one of the most frustrating times for new option traders: earnings season.Many new traders buy options,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER