OptionsHouse

Options Trading News

November 7, 2012  Wed 7:09 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
U.S. stock index futures are following energy prices lower this morning as attention shifts to political risk in Europe.

S&P 500 futures are down by about half a percent and have been negative all morning. German and French indexes were higher but have now turned red as the euro tumbles. This morning's weakness comes one day after the S&P 500 advanced by 0.08 percent and after Barack Obama was reelected to a second term as president.

Obama's victory may cause selling in coal miners in particular, which led the market over the last month. Events in Europe are also important, as Greek lawmakers are scheduled to vote on unpopular austerity measures that are considered necessary for the country to avoid a sovereign-debt default.

The euro is lower across the board ahead of the news, while the Japanese yen is higher against most other currencies. That kind of price action is consistent with risk aversion.

Commodities are also showing caution toward the global economy. Oil is down by more than 1 percent, while copper fell by two-thirds of a percent. Precious metals and agricultural foodstuffs are mixed.

In addition, Germany reported that industrial production contracted by 1.8 percent in September, while economists were expecting a drop of only 0.5 percent. The big question for investors now is whether the United States and emerging markets are strong enough to keep the global economy out of recession.

In company-specific headlines, News Corp. is higher by about 2 percent after quarterly earnings beat estimates. Contract manufacturing company Plexus is shedding one-quarter of its value after losing Juniper Networks as a customer. Rubicon Technology and LivePerson are also lower after reporting weak revenue and issuing weak guidance.
Share this article with your friends


Related Stories

SPX

Futures rebound before key data

May 1, 2015

S&P 500 futures are up 0.3 percent, while most European markets are closed for May Day. Hong Kong and Mumbai fell almost 1 percent each. Oil is holding its ground after rallying.

SPX

ISM, construction data lead agenda

May 1, 2015

The Institute for Supply Management's manufacturing index is the main item on today's agenda, followed by construction spending and consumer-sentiment data.

SPX

Futures lower following weak data

April 30, 2015

S&P 500 futures are lower by 0.1 percent and the Nasdaq 100 futures by about 0.3 percent. European indexes are off slightly, but Tokyo led Asia lower with a drop of almost 3 percent.

SPX

Jobless claims, income on docket

April 30, 2015

The U.S. data starts at 8:30 a.m. ET with initial jobless claims, personal income, and personal spending. Claims are expected to come in at 290,000, compared with 295,000 the previous week.

SPX

Futures pressured by weak GDP

April 29, 2015

First quarter gross domestic product missed estimates by a wide margin. Attention will now turn to the Fed's policy statement this afternoon.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Education & Strategy

Introduction to Synthetics

"Synthetics" is the name given to the relationship of two separate positions, constructed differently, that have the same exact risk and reward at each and every price level. They say that there is more than one way to skin a cat...well, there is always more than one way to create an option position...

View more education articles »