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 inch higher ahead of data

July 29, 2014

S&P 500 futures are up more than 0.1 percent, and the Nasdaq is higher by almost 0.2 percent. Europe shows gains of about 0.5 percent, similar to those in Asian markets overnight.

SPX

Home prices, consumer data on tap

July 29, 2014

The Case-Shiller index of home prices, scheduled for release at 9 a.m. ET, is expected to show an increase of 10 percent in May. Consumer confidence follows an hour later.

SPX

Futures slip as market awaits news

July 28, 2014

S&P 500 futures are down about 0.1 percent, while Europe is mixed. Shanghai gained more than 2 percent ovenright after Chinese data showed industrial profit growth almost doubling in June.

SPX

Pending home sales lead calendar

July 28, 2014

The economic calendar begins slowly this week but grows increasingly busy. The main data report today is pending home sales at 10 a.m. ET.

SPX

Futures lower after Amazon misses

July 25, 2014

S&P 500 futures and Nasdaq 100 futures are slightly lower with the e-commerce giant down more than 10 percent. European trading is mixed, while Asian bourses were mostly higher overnight.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Education & Strategy

How to navigate earnings season

We are embarking on one of the most frustrating times for new option traders: earnings season.Many new traders buy options,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER