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

Earnings, housing data on docket

July 22, 2014

Today's first economic report is the consumer-price index at 8:30 a.m. ET. Comcast, DuPont, McDonald's, Verizon, United Technology, Lockheed Martin, and Ingersoll-Rand report earnings this morning.

SPX

Futures lower on Ukraine tensions

July 21, 2014

Stock futures are lower this morning as geopolitical tensions simmer between Russia and the West. A stream of earnings reports are awaited as well.

SPX

Earnings dominate week's calendar

July 21, 2014

Earnings reports will take center stage today in the absence of any large economic releases, barring further geopolitical pressures.

SPX

Stocks try to rebound from selloff

July 18, 2014

S&P 500 futures are up 0.1 percent, and Europe is holding its ground with fractional declines. Japan was the only Asian index to fall more than 1 percent overnight.

SPX

Earnings, consumer data on docket

July 18, 2014

Consumer sentiment is the main economic report today, and geopolitical event could steal the show. There are also earnings from GE, Honeywell, Johnson Controls, Bank of New York Mellon, and Cemex.

Premium Services

Free Webinars

Join The 100k Challenge: Turn 3k into 100k

Education & Strategy

Why the VIX isn't 'broken'

For months there has been lots of talk about complacency and the "broken" CBOE Volatility Index, but both discussions are...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER