Options Trading News

July 29, 2013  Mon 7:13 AM CT

Stocks are down slightly before a flood of economic news and corporate earnings this week.

Stock futures hit their lows late last night as worries about China's economy and a strong Japanese yen triggered losses of 2 percent to 3 percent in Asia. But Europe received a boost from earnings and merger news, lifting markets in Frankfurt, Paris, and London by more than 0.25 percent. S&P 500 futures have also recovered, and are now down by less than 0.2 percent. Treasury bond yields are also edging lower.

Pending home sales at 10 a.m. ET are the only item on today's agenda, but the calendar grows more active each day. Tomorrow brings consumer confidence data, the Case-Shiller index of home prices and economic sentiment data from Europe. Wednesday is packed with private-sector payrolls, second-quarter gross domestic product and the Federal Reserve's interest-rate decision.

Thursday features Europe's purchasing managers index and central-bank news, plus initial jobless claims and the Institute of Supply Management's forward-looking manufacturing index. Non-farm payrolls, perhaps the most important release each month, is scheduled for Friday morning.

Today's big earnings announcements include Hertz Global, Tenneco, Franklin Resources, Masco, and Herbalife.

The S&P 500 has spent more than a week hovering slightly above its previous all-time highs from May. Our researchLAB market scanner shows evidence of investors growing more cautious during that time by favoring non-cyclical health-care stocks over industrials. Transports have also lagged.

Other industry groups have shown strength. Gold and silver miners have outperformed, trying to rebound from more than a year of weakness. Chinese Internet companies, emerging markets, oil refiners, and videogame stocks have also been rallying in the last week.

Precious metals are up more than 1 percent today, which may continue to favor the miners. Brent crude is leading oil modestly higher, which could support refiners. Copper also rose fractionally despite the weakness in China overnight.

Trading in the foreign-exchange market is more cautious as the safe-haven Japanese yen posts small gains across the board. Currencies associated with risk appetite, such as the euro and Australian dollar, are also down slightly.

In company-specific news, advertising firm Omnicom rose about 4 percent after agreeing to merge with France's Publicis Groupe. Casino operator Wynn Resorts is down 1.5 percent after earnings and revenue missed expectations. Luxury retailer Saks also agreed to be acquired by Canada's Hudson's Bay department-store chain.
Share this article with your friends

Related Stories


Stocks pause after quick bounce

October 6, 2015

S&P 500 futures are down 0.2 percent, while Europe is fractionally higher. Asia rose 0.5-1 percent overnight, though Chinese markets remain closed for a holiday.


PepsiCo earnings on slow docket

October 6, 2015

PepsiCo announces quarterly results before the opening bell and Yum Brands follows in the afternoon. The Commerce Department releases the U.S. trade balance for August.


Stocks keep upward momentum

October 5, 2015

S&P 500 futures are up 0.7 percent, while most of Europe is up 2-3 percent. Asian markets rose 1-2 percent overnight.


ISM services lead quiet agenda

October 5, 2015

The agenda quiets this week, though quarterly earnings will begin to flow. European retail sales are the first event early in the session and may have affect sentiment.


Stocks drop after weak jobs report

October 2, 2015

S&P 500 futures are down more than 1 percent after non-farm payrolls missed forecasts. Bonds and gold moved higher.

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


The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »