Learn the trade here. Make it on tradeMONSTER

Options Trading News

July 3, 2013  Wed 6:58 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Equities are falling before a shortened trading session today and a holiday tomorrow.

S&P 500 futures are down half a percent, while Europe is lower by 1 percent to 2 percent after two Portuguese cabinet ministers resigned. That raised fears that the country could face sudden elections and derail reforms. Most Asian indexes also fell in the overnight session, led by a 2.5 percent drop in Hong Kong as Chinese economic data continued to disappoint. This time the country's service-sector purchasing managers index missed expectations, falling to its lowest level in nine months.

The market has been churning in a range for more than a month after ripping to new all-time highs in early May. While economic prospects have been brightening in developed countries such as the United States and Japan, emerging markets have lagged and continue to draw bearish options bets.

The S&P 500 has also hit resistance at its 50-day moving average, which had provided support in February, April, and early June. This suggests that the strong momentum--seven months of gains between November and May--has been broken for the time being. Attention will now focus on whether the economy can survive higher interest rates and weakness in countries such as China and India.

ADP's private-sector payroll report at 8:15 a.m. ET is the main event on today's calendar. Economists are looking for a reading of 150,000 for June, up from 135,000 the previous month. Challenger, Gray & Christmas already reported that layoffs rose 8.2 percent in June.

The market will close at 1 p.m. ET today and remain shut tomorrow in observance of Independence Day. Friday will likely be a very light session in terms of volumes, but it will feature the key non-farms payroll report one hour before the opening bell. Next week brings the start to corporate-earnings season.

Foreign-exchange markets also show a bearish pattern today, with the euro and Australian dollar down but the Japanese yen up across the board.

Commodities, however, are strangely bullish given the move in equities and currencies. Oil and gold rose by more than 1 percent and silver is up 2.5 percent. Agricultural foodstuffs are also up across the board and copper is little-changed.
Share this article with your friends


Related Stories

SPX

Equities retreat after quick rally

April 23, 2014

S&P 500 futures are off about 0.1 percent, while Europe is lower by about 0.5 percent. Asia was mixed overnight, with Tokyo up 1 percent and Hong Kong down by a similar amount.

SPX

Earnings, manufacturing on tap

April 23, 2014

In addition to HSBC/Markit's preliminary purchasing managers indexes for China and Europe, we will get earnings from Boeing, Delta Air Lines, Biogen Idec, EMC, and Dow Chemical this morning.

SPX

Stocks hover, pausing from rebound

April 22, 2014

S&P 500 futures are little-changed as the index pauses at a resistance level, but the Nasdaq 100 is continuing to claw its way back from its recent selloff.

SPX

Flood of earnings leads calendar

April 22, 2014

McDonald's, Travelers, United Technologies, Xerox, Lockheed Martin, Lexmark, AK Steel, and Arch Coal announce quarterly results before the opening bell.

SPX

Stocks inch higher amid earnings

April 21, 2014

Stocks are inching higher again as investors anticipate a deluge of first-quarter results. S&P 500 and Nasdaq 100 futures are up slightly so far this morning.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Options and high-frequency trading

There has been much talk lately of high-frequency trading (HFT) and what it does--or doesn't--mean to the markets and retail...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER