Options Trading News

February 20, 2013  Wed 7:11 AM CT

Stocks are edging lower this morning after hitting record levels yesterday.

S&P 500 futures are down marginally, while most European indexes are falling by about half a percent. Asian markets advanced overnight after yesterday's gains in the United States.

Equities have been steadily climbing since the last day of 2012 as years of pessimism lift and money--created by central banks to address financial crisis--begins to migrate from bonds. Today's weakness comes after the S&P 500 closed at its highest level since October 2007, while the Russell 2000 small-cap index and the Dow Jones Transports Average set new all-time highs.

Investors now face the choice of putting money to work with the market already up 10 percent in the last three months, or waiting for a pullback. They're also waiting for data on housing starts and housing permits at 8:30 a.m. ET and the minutes of the last Federal Reserve meeting at 2 p.m. ET.

Foreign-exchange markets are expressing a cautious sentiment, while commodities are mixed. Currencies associated with risk appetite--the euro, the Australian dollar, and the Canadian dollar--are lower, while the safe-haven Japanese yen is gaining.

Oil and copper are posting small losses, while money continues to flow out of precious metals: Gold and silver are down by about 1 percent, while platinum has lost another 2 percent of its value. Agricultural products are mixed.

In company-specific news, Express Scripts is indicated to open higher after earnings and guidance surpassed expectations. OfficeMax and Office Depot are also rallying for a second day after the companies confirmed that they will combine in an all-stock merger. Chinese Internet company Sina is also gaining after its revenue beat expectations.
Share this article with your friends

Related Stories


Stocks inch higher before data

November 25, 2015

S&P 500 futures are up about 0.1 percent, while most of Europe is rallying more than 1 percent. Asia was mostly lower overnight.


Calendar is busy before holiday

November 25, 2015

Today's agenda is packed with data, including mortgage applications, jobless claims, durable goods, personal income and spending, consumer sentiment, and new home sales.


Stocks fall after Russian jet downed

November 24, 2015

S&P 500 futures are down 0.6 percent, while most of Europe has fallen more than 1 percent. Asian markets were little-changed.


GDP, consumer confidence on tap

November 24, 2015

The second reading on third-quarter GDP is scheduled for 8:30 a.m. ET. Forecasters anticipate growth of 2 percent, up from the previously reported 1.5 percent gain.


Stocks drift into busy week of data

November 23, 2015

S&P 500 futures are little-changed, while most of Europe is fractionally lower. Asia also posted small losses overnight. There's also significant volatility in oil.


Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »