OptionsHouse

Options Trading News

October 23, 2012  Tue 7:01 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are falling this morning as earnings weaken and confidence sours in Europe.

S&P 500 futures are down more than 1 percent, following declines of a similar magnitude in France and Germany. Asian markets were mixed overnight.

Today's drop comes after the S&P 500 rebounded from a sharp selloff in yesterday's session as investors face a flow of negative headlines: Moody's downgraded five of Spain's regional governments, French manufacturing sentiment dropped to its lowest level in more than two years, and earnings reports have continued to paint a picture of weakening performance.

The tone has been especially negative in technology, punctuated yesterday afternoon when chip maker Texas Instruments and hard-drive manufacturer Western Digital issued disappointing guidance. This morning chemicals giant DuPont is down by more than 5 percent after earnings missed consensus estimates and outlook trailed expectations. Industrial conglomerate 3M also lowered its projections.

Currencies and foreign-exchange markets are showing risk aversion, with oil, copper, and silver all down more than 1 percent. Agricultural foodstuffs are mostly negative as well. The euro, Australian dollar and Canadian dollar are all down against the U.S. dollar, while the Japanese yen is up across the board.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

Dissecting a big institutional trade

This week's column will study a recent call ratio spread. We're not recommending using this strategy because it has potentially huge risk. But we can learn from this different use of options by a large institutional investor.

View more education articles »