OptionsHouse

Options Trading News

August 7, 2013  Wed 7:11 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are retreating from record highs today amid worries that central banks will withdraw easy-money policies.

S&P 500 futures are down almost 0.25 percent, while European indexes are mostly lower. The big move occurred overnight in Asia, where Japan's Nikkei cratered 4 percent. Australian and Hong Kong indexes also fell sharply.

The S&P 500 has been hovering on either side of 1700 for more than two weeks following a strong rebound in early June. Economic data has also been remarkably strong, which gives investors potential reason to believe that the Federal Reserve and other monetary authorities will reduce stimulus measures. Today's losses in Germany, for instance, come despite better-than-expected industrial production in June.

Stocks fell earlier in the session after the Bank of England simply mentioned interest rates, though it made no strong comments about when they would rise. The move is similar to price action in May when investors interpreted innocuous comments by Fed Chairman Ben Bernanke as bearish. These reactions probably have less to do with the realities of policy and more to do with the fact that traders may look to take profits with the S&P 500 already up 19 percent for the year.

There are few other important events scheduled for the rest of the week, so trading could remain skittish and difficult to navigate.

Price action was also bearish yesterday as transportation stocks and small caps fell more than the broader market. Conservative sectors such as consumer staples and healthcare outperformed, while materials, financials and industrials lagged.

Foreign-exchange trading is cautious today, with the Australian and Canadian dollars both lower while the safe-haven Japanese yen is up across the board. Commodities are painting a similar picture as copper and silver fall more than 1 percent. Oil is modestly lower as well.

In company-specific news Walt Disney fell almost 2 percent after revenue missed and management said it would lose as much as $190 million on the failure of its "Lone Ranger" film. Computer Sciences rose on a strong earnings report and Finisar continued the stream of positive news in the telecom-supply space by raising its outlook. First Solar and Avis Budget, however, fell.
Share this article with your friends


Related Stories

SPX

Stocks higher amid busy calendar

September 3, 2015

S&P 500 futures are up 0.4 percent, while most of Europe has risen about 1 percent. Mumbai and Hong Kong led moves in Asia, up 1 percent and down 1 percent respectively.

SPX

ECB, job claims, ISM services due

September 3, 2015

The European Central Bank leads a busy economic calendar today. Policy-makers in Frankfurt issue their statement at 7:45 a.m. ET, followed by a press conference 45 minutes later.

SPX

Stocks hold gains after ADP report

September 2, 2015

S&P 500 futures remained up 0.8 percent after private-sector job growth missed estimates by a narrow margin. Europe rose fractionally and Asia was unusually calm.

SPX

ADP payrolls lead busy calendar

September 2, 2015

ADP's report is due at 8:15 a.m. ET and is expected to show the creation of 203,000 jobs in August, up from the a gain of one month earlier.

SPX

Momentum sellers hammer market

September 1, 2015

S&P 500 futures have plunged 1.8 percent but have been trying to rebound in the last two hours. Europe is down 2 percent while Tokyo cratered almost 4 percent overnight.

Invest Like a Monster - San Antonio: October 9-10

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: On Options Strategies in General

Before we hop into the different option strategies, I have a few thoughts for you to remember concerning the strategies and our use of them.

View more education articles »