Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 3, 2013  Thu 7:10 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are lower again today as battle lines harden between Republicans and Democrats in Washington.

S&P 500 futures are down about 0.4 percent and have been trying to climb in the last half hour. European markets are up slightly, and Asia was mostly positive in the overnight session.

Trading in the currency markets is optimistic as the euro inches higher and the safe-haven Japanese yen declines. Bonds are also falling, a potential sign of risk appetite.

The S&P 500 rebounded from an early drop of almost 1 percent yesterday to end the session little-changed. It's fallen in seven of the last nine sessions and is trying to hold support at its 50-day moving average. The mix of price action has remained modestly bullish even as the has market declined, with higher-risk stocks such as small caps and transports outperforming in the last week. Emerging markets and global names have also remained strong.

The government shutdown, now in its third day, will have little negative impact if it remains brief. The bigger danger is that a prolonged impasse will interfere with raising the country's debt ceiling later this month and create the risk of a default. A meeting yesterday afternoon between House Republicans, Senate Democrats and the White House produced little evidence that an agreement is near.

The shutdown has also interfered with the economic calendar and will likely prevent weekly jobless claims, factory orders, and natural-gas inventories from being released today. That leaves the Institute of Supply Management's service-sector index at 10 a.m. ET as the main item.

Economic news was positive from the Eurozone today: A survey showed the service sector growing at its fastest pace in more than two years, retail sales rose more than expected, and Italy's service sector exited a 27-month contraction.

The euro is posting small gains, while the Japanese yen is down across the board. Oil is little-changed, but Brent crude is climbing against West Texas Intermediate--a potentially positive catalyst for refiner stocks. Gold and silver both declined 1 percent, and copper is down two-thirds of a percent. Agricultural products are mostly higher.

In company-specific news, winemaker Constellation Brands is up 2.5 percent after profit beat expectations. Wireless-technology company CalAmp is gaining about 10 percent on a strong quarterly report, as well. Tesla Motors is down 2 percent and could be active after a fire destroyed one of its vehicles.
Share this article with your friends


Related Stories

SPX

Fed dominates economic docket

September 17, 2014

SPX

Stocks inch lower before key events

September 16, 2014

S&P 500 futures are off 0.15 percent, while most of Europe is down about 0.4 percent. Asian markets fell sharply overnight, led by drops of 1.8 percent in Shanghai and 1.2 percent in Mumbai.

SPX

Inflation, German data on calendar

September 16, 2014

The first data comes early in the session, when Germany's Zew institute releases its economic-sentiment index. The Labor Department follows with its producer-price gauge for August at 8:30 a.m. ET.

SPX

Stocks slip before Fed, Scotland

September 15, 2014

Stocks are edging lower as investors prepare for the Federal Reserve's announcement and Scotland's independence vote later in the week.

SPX

Fed meeting looms large this week

September 15, 2014

The Federal Reserve's meeting on Wednesday dominates this week's calendar, but there are a handful of other items.

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER