OptionsHouse

Options Trading News

December 21, 2012  Fri 6:48 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Global equities are sharply lower this morning after the House canceled last night's scheduled vote on a "Plan B" measure designed to preserve tax breaks while negotiations continue on the so-called fiscal cliff.

U.S. stock futures plunged immediate after the news from Washington but have pared their losses since then. S&P 500 futures are down 1.25 percent, or 18 points, to 1422.90 at the time of this writing. Nasdaq 100 futures are lower by 33 points, or 1.23 percent, to 2657.

European markets are down but also off their session lows. The U.K. FTSE and German DAX are both down about 0.5 percent, and France's CAC-40 is lower by 0.25 percent.

Asian exchanges were open when the House news broke and reacted instantly by reversing lower. Japan's Nikkei began its session by rising 1.3 percent but finished the day down 1 percent. Hong Kong's Hang Seng Index and the Shanghai Composite both dropped 0.7 percent.

Major U.S. stock indexes had been holding gains from recent rallies based on optimism that a resolution would be reached, but the latest move in Congress was viewed as a red flag against prospects of a timely settlement. Many economists agree that failure to avoid the cliff, which would raise taxes and cut government spending at the end of this year, would result in another recession.

Commodities are mixed but not seeing extreme reactions in either direction. Oil is down about 1 point to 89.14 as of this writing. Gold is up about 4 points to 1650, while silver is slightly higher.

In foreign-currency trading, the euro/dollar is down 0.32 percent at $1.3213. A lower euro has been generally bearish for U.S. equities.
Share this article with your friends


Related Stories

SPX

Stocks fall sharply on poor earnings

January 27, 2015

S&P 500 futures are down 1 percent, while European indexes have fallen 1 to 2 percentage points. Asia was mixed overnight, with Tokyo gaining almost 2 percent and Mumbai up 1 percent.

SPX

Consumer confidence, Apple on tap

January 27, 2015

Durable-goods orders for December get the ball rolling, followed by the Case-Shiller index of home prices, new home sales, and consumer confidence data. Apple reports after the close.

SPX

Stock bulls look past Greek elections

January 26, 2015

S&P 500 is down less than 0.1 percent, but the Nasdaq 100 is slightly positive ahead of earnings from Microsoft and Apple. European indexes have also turned solidly higher.

SPX

Today's agenda is calm before storm

January 26, 2015

Today is the quietest session, featuring only Germany's Ifo index of business confidence. D.R. Horton, Norfolk Southern, Seagate Technology, and Texas Industruments announce quarterly results.

SPX

Cramer: Possible signs of flash crash

January 23, 2015

The insanity and inanity of these market moves wrecks confidence and wants everyone to pay less for stocks--with the exception of the pure domestic plays.

Invest Like a Monster - Las Vegas: March 13-14

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinar

Option Money Machine Winter Classic

Education & Strategy

Rolling in possibilities!

First of all, we want to wish everyone a happy, healthy, and prosperous New Year!  Our plan was to get...

View more education articles »