Learn the trade here. Make it on tradeMONSTER

Options Trading News

February 4, 2013  Mon 7:12 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are beginning the week lower after hitting long-term highs on Friday and as risks surface in Europe.

S&P 500 futures are down by about one-third of a percentage point, with the losses accelerating in the last hour. Traders are taking their cues from Europe, where German and French indexes have fallen more than half a percentage point.

The big headlines come from Spain, where Prime Minister Mariano Rajoy and other People's Party members have been accused of accepting improper payments from a government fund. A poll also shows weakening popular support for his leadership. Spanish bond yields are climbing as a result, while the country's stocks are down by almost 2 percent. Italy is under pressure, as well.

Stocks had been advancing strongly for the last 2-1/2 months as perceived event risk waned and money returned from the bond market. Volatility has also dried up as the S&P 500 climbed to its highest level since late 2007, while the Russell 2000 small-cap index and the Dow Jones Transportation Average reached all-time highs. The question today is how much damage will be done by the Spanish headlines and simple profit-taking.

Last week was also full of important data that showed steady improvement in the global economy and positive corporate earnings. The schedule for the next five days is much quieter, with the Institute for Supply Management's non-manufacturing index tomorrow and initial jobless claims on Thursday as the main events. December factory orders, today's only release, are unlikely to affect sentiment.

Currencies and commodities are painting a mostly negative picture. The euro is down against the dollar and the Japanese yen, while oil is lower by about 1 percent. Copper and gold are down by half a percentage point, while silver fell by about 1.5 percent. Most agricultural
foodstuffs are modestly higher.

In company-specific news, Herbalife is down 13 percent after the New York Post uncovered a Federal Trade Commission released 192 complaints against the firm over the last seven years. That follows embittered debate over the company's accounting practices.
Share this article with your friends


Related Stories

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.

SPX

Earnings are docket's main focus

April 21, 2014

Attention continues to focus on corporate earnings this week. Halliburton, Hasbro, and SunTrust Banks get the ball rolling this morning, followed by Netflix and Rambus after the close.

SPX

Options and high-frequency trading

April 18, 2014

There has been much talk lately of high-frequency trading and what it means to the markets and retail traders. The big issues and arguments all point in favor of options.

SPX

Stocks in range as earnings flow

April 17, 2014

This morning's big companies--Goldman Sachs, General Electric, Morgan Stanley, and PepsiCo--are all trading higher after beating estimates.

SPX

GE, Goldman, jobless claims on tap

April 17, 2014

Earnings and jobless claims are the main events on today's calendar. Trading will likely be light with markets closed tomorrow for Good Friday.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

When cash is king (of hedging)

Whether your trades are winning or losing, it can be tempting to add to your positions. But in either case,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER