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

Stocks slip before Fed, ECB speeches

August 22, 2014

S&P 500 futures are off 0.1 percent, while Europe is down about 0.5 percent. Asia was mostly higher overnight as Hong Kong, Shanghai, Seoul, and Mumbai eked out fractional gains.

SPX

Yellen, Draghi dominate calendar

August 22, 2014

U.S. Federal Reserve Chair Janet Yellen will speak at 10 a.m. ET, followed by European Central Bank President Mario Draghi at 2:30 p.m. ET.

SPX

S&P 500 at new highs as VIX slips

August 22, 2014

Stocks remained bullish yesterday, with the S&P 500 inching to new record highs as the CBOE Volatility Index reversed early gains.

SPX

Stocks stay bullish near record highs

August 21, 2014

S&P 500 futures is up about 0.2 percent while Europe is higher across the board, led by Italy and Spain. Asia was mostly lower overnight, but Japan's Nikkei surged almost 1 percent.

SPX

Mix of data ahead of Jackson Hole

August 21, 2014

Initial jobless claims at 8:30 a.m. ET are the first U.S. data headline today. Economists expect a reading of 308,000, down from 311,000 the previous week.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Repairing losers with ratio spreads

Last week we mentioned the "stock repair strategy." This week is a good time to follow up, given the action...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER