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

Stocks inch lower before key data

March 4, 2015

S&P 500 futures declined about 0.3 percent and are attempting to hold support at their mid-February highs. Europe is little-changed, and Asia was mostly lower overnight.

SPX

ADP labor report tops busy calendar

March 4, 2015

The employment number at 8:15 a.m. ET and is expected to show that 220,000 jobs were added in February. That would compare with growth of 213,000 in December.

SPX

Stocks hovering near record levels

March 3, 2015

S&P 500 futures are down about 0.1 percent, matching the small declines in Europe. Asia was mostly lower overnight as profit-takers knocked China down 2 percent. Oil is higher.

SPX

Earnings, autos lead quiet session

March 3, 2015

Today is the quietest session of the week, with nothing but earnings and monthly auto sales on the economic calendar.

SPX

Stocks edge lower before key data

March 2, 2015

S&P 500 futures are down 0.1 percent, while most of Europe is off about 0.5 percent. Asia was mostly higher overnight, bolstered by an interest-rate cut and Chinese manufacturing numbers.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

View more education articles »