OptionsHouse

Options Trading News

November 9, 2012  Fri 7:05 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are falling again today as investors worry about tax hikes.

The S&P 500 is indicated lower about 0.40 percent, while European indexes are lower by half a percent to a full percentage point. Most Asian bourses declined overnight as well, despite better-than-expected industrial production in China.

Already battered by a series of weak profit forecasts tied to economic weakness in Europe, investors now face the risk of the "fiscal cliff" in the United States at the beginning of 2013. The feared crisis would automatically increase taxes and lower government spending, with the potential to send the economy into recession.

Following a strong rally in the third quarter, the S&P 500 has been dropping for the last month and is now attempting to hold support around its 200-day moving average. There was also huge demand for Treasury bonds yesterday as investors looked to preserve their capital and eschewed risk-taking.

Foreign exchange is showing a cautious tone as well, with the euro lower and the Japanese yen higher across the board. The Australian dollar is also falling despite the strong economic news from China, which suggests that investors consider the U.S. fiscal cliff a bigger catalyst to the downside than recovery on the mainland.

Commodities are painting a mixed picture, with economically sensitive items such as oil and copper falling. Precious metals, viewed as a hedge against the fiscal cliff, are holding their ground.

In company-specific news Kyak Software is indicated to open higher by more than 25 percent after agreeing to be purchased by Priceline. Groupon is plunging after quarterly resulted missed expectations, and media giant Walt Disney is down by about 3 percent after revenue missed estimates and management warned of rising costs.
Share this article with your friends


Related Stories

SPX

Futures decline after Greek ballot

July 6, 2015

S&P 500 futures are down 0.6 percent after dropping about 1.1 percent overnight. European indexes have followed a similar trajectory but are 1-2 percent in the red. Asia was mostly lower as well.

SPX

Quiet calendar after Greek vote

July 6, 2015

Today's agenda starts early with German factory orders and the European Sentix sentiment gauge. The main U.S. item is the Institute for Supply Management's service-sector index.

SPX

Futures climb after jobs report

July 2, 2015

S&P 500 rose 0.3 percent, up from an earlier gain of 0.1 percent after non-farm payrolls missed estimates by a small margin.

SPX

Job data in focus before holiday

July 2, 2015

Non-farm payrolls, moved forward from Friday, and weekly jobless claims are due at 8:30 a.m. ET. Factory orders for May follow at 10 a.m. ET.

SPX

Stocks hold gains after jobs data

July 1, 2015

S&P 500 futures rebounded 0.8 percent as investors look past the Greek debt crisis and focus on economic news. Europe was broadly higher while bonds continue to fall.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »