Learn the trade here. Make it on tradeMONSTER

Options Trading News

February 14, 2013  Thu 7:17 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are heading lower this morning after European economic reports came in weaker than expected.

S&P 500 futures are down by about 0.25 percent, compared with losses of about 1 percent in Paris and Frankfurt, while Spain is down almost 2 percent Atlantic. Asian shares inched higher overnight, though China and Taiwan remain closed for the Lunar New Year.

Reports from Germany, France, Italy, and the broader Eurozone showed gross domestic products contracting more than expected in the fourth quarter. That is pouring cold water on a region that has led global markets higher since the autumn.

The news comes with the S&P 500 sitting at a level where it peaked in December 2007 before crashing the following year. Yields on 10- and 30-year Treasuries have also returned to areas where they peaked in the previous year, which could make some traders expect a pause or reversal.

The only other big data point today is initial jobless claims at 8:30 a.m. ET. Economists expect a reading of 365,000 versus 366,000 a week earlier.

Foreign-exchange markets are showing a pattern of risk aversion, while commodities are more neutral. The euro and Australian dollar fell, while the Japanese yen is mostly higher. Oil and copper, which tend to follow economic sentiment, are little-changed, and agricultural foodstuffs are mixed. Precious metals are inching higher. (See our story about a large bullish trade in gold yesterday.)

Many companies are moving based on their own news. H.J. Heinz is up about 20 percent after agreeing to be purchased by Warren Buffett's Berkshire Hathaway. Weight Watchers is down about 15 percent after management issued weak guidance. Cisco Systems and General Motors are also marginally lower after reporting quarterly results, while PepsiCo and Applied Materials are slightly higher.
Share this article with your friends


Related Stories

SPX

Inflation, German data on calendar

September 16, 2014

The first data comes early in the session, when Germany's Zew institute releases its economic-sentiment index. The Labor Department follows with its producer-price gauge for August at 8:30 a.m. ET.

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.

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