Learn the trade here. Make it on tradeMONSTER

Options Trading News

August 22, 2012  Wed 7:13 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are heading lower this morning after failing to hold long-term highs yesterday.

Futures on the S&P 500 and Nasdaq 100 declined by about one-quarter of a percent, while the Dow Jones Industrial Average is facing smaller losses. On Tuesday, the SPX reversed after touching its highest level since mid-2008, while the NDX returned to prices last seen more than a decade ago.

Asian and European bourses are also lower after a widening Japanese trade deficit revived fears about the global economy. Hong Kong's Hang Seng Index and London's FTSE 100 led with declines of more than 1 percent. Attention also remains focused on the Greek and Spanish debt crises, although major news is considered unlikely before the Sept. 6 European Central Bank meeting.

Today's downside in equities also comes after the yield on the benchmark 10-year U.S. Treasury yield hit resistance at its 200-day moving average. Given that stocks and bonds tend to move in opposite directions, some traders may consider that price action as a reason to reduce risk.

Commodities and foreign exchange painted a modestly bearish picture as well, with the euro down slightly against the U.S. dollar. The Australian and Canadian dollars, which tend to be correlated with stocks, also fell. Weakness in the Japanese yen following that trade report, however, seems to be preventing a wider flight to risk aversion.

Oil and copper edged lower by about one-third of a percent. Most agricultural foodstuffs declined by less than 1 percent. Gold and silver also posted small losses.

In company-specific news, PC maker Dell is falling by almost 6 percent after second-quarter revenue missed estimates and management lowered guidance. Kitchen retailer Williams Sonoma and homebuilder Toll Brothers are gaining on strong results.
Share this article with your friends


Related Stories

SPX

Futures slip as market awaits news

July 28, 2014

S&P 500 futures are down about 0.1 percent, while Europe is mixed. Shanghai gained more than 2 percent ovenright after Chinese data showed industrial profit growth almost doubling in June.

SPX

Pending home sales lead calendar

July 28, 2014

The economic calendar begins slowly this week but grows increasingly busy. The main data report today is pending home sales at 10 a.m. ET.

SPX

Futures lower after Amazon misses

July 25, 2014

S&P 500 futures and Nasdaq 100 futures are slightly lower with the e-commerce giant down more than 10 percent. European trading is mixed, while Asian bourses were mostly higher overnight.

SPX

Quiet calendar before busy week

July 25, 2014

The only economic headline is Germany's Ifo survey of business conditions ahead of a full calendar next week. AbbVie, LyondellBassell, Tyco, Vodafone, and Xerox issue quarterly results today.

SPX

Earnings, data send stocks higher

July 24, 2014

Stocks are poised to set new records today, fueled by strong earnings and economic data. Investors are specifically reacting to blowout numbers from Facebook and strong global manufacturing numbers.

Premium Services

Free Webinars

Education & Strategy

How to navigate earnings season

We are embarking on one of the most frustrating times for new option traders: earnings season.Many new traders buy options,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER