Options Trading News

August 29, 2012  Wed 7:08 AM CT

Stocks are indicated to open slightly lower today as the indexes remain in a tight range after a big run.

Futures on the S&P 500 are down fractionally while the Nasdaq 100 is unchanged. German, French and British markets fell about half a percent as investors continue to wait for news from the European Central Bank on Sept. 6. Chinese stocks fell in the overnight Asian session, while Japan rebounded from a drop on Tuesday.

Traders are also waiting for economic data in the U.S. at 8:30 a.m. ET, when the Commerce Department will report second-quarter gross domestic product. The Federal Reserve's Beige Book follows at 2 p.m.

The time of year is probably even more important than news events as summer vacations slow trading activity to a crawl. Equities have melted higher during July and August, and are now drifting near multiyear highs. On the bearish side, investors see debt problems in Europe and lackluster growth globally. But it's been hard to sell stocks as the economy skirts recession and corporate finances continue to improve.

Foreign exchange and commodities are also showing a modestly bearish sentiment, with the euro down slightly against the greenback. The Australian and Canadian dollars, which also tend to move in unison with equities, also posted small losses. Oil, copper and silver each declined by almost 1 percent, while agricultural foodstuffs were broadly positive.

In individual company news, oil tanker company Frontline dropped about 9 percent in early trading after reporting a wider-than-expected second-quarter loss and predicting worse results in the third quarter.

WellPoint advanced about 4 percent after its unpopular CEO stepped down.
Share this article with your friends


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 »