Learn the trade here. Make it on tradeMONSTER

Options Trading News

June 11, 2013  Tue 7:13 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stock futures are lower today as buyers pause following a sharp rally late last week.

S&P 500 futures are down almost 1 percent, while indexes are lower by almost 2 percent in Europe. Both have been climbing from earlier lows in the last hour. China and Japan declined by more than a full percentage point in the overnight session.

Some attribute the drop to the Bank of Japan failing to announce measures against market volatility, but the more likely explanation is that the S&P 500 had stalled at the same 1640 area that was support in late May and has now become temporary resistance.

We appear to be entering a phase of consolidation after seven months of straight gains, with every major index except the Nasdaq 100 in record territory. A lot of good news has already been priced into stocks, and there are few known catalysts in the near term with the potential to push the market out of its current range.

One unknown today is a court hearing in Germany, featuring challenges to the European Central Bank's bond-buying program. The market, so far, expects the judges to side with the ECB. After that, the next big event is the release of U.S. retail sales on Thursday morning.

Commodities are following the bearish pattern as oil, copper, and silver fall more than 1 percent. Gold is also down almost a full percentage point, and agricultural products are mixed. The tone is similar in foreign-exchange markets, with the safe-haven Japanese yen up almost 2 percent against most other major currencies. The Australian and Canadian dollars are also tanking against the greenback.

Despite the moves, however, the yen is well below its highs from last week and appears to be consolidating. That's important because declines in the Japanese currency have been a key factor supporting risk appetite globally all year.

In company-specific news, Lululemon Athletica is down 13 percent after CEO Christine Day announced she was leaving the company. The drop comes despite quarterly results beating expectations.

Corinthian Colleges fell more than 20 percent after revealing it was under investigation by the Securities and Exchange Commission, which is seeking information on student recruitment, attendance, completion, and placement.

Pharmacy-benefits company Catamaran, on the other hand, is rallying 14 percent after winning a key contract with Cigna. 
Share this article with your friends


Related Stories

SPX

Stocks continue retreat from highs

July 31, 2014

S&P 500 futures are down 0.6 percent. Europe is down across the board, led by a 2 percent selloff in Madrid. Asia was mixed overnight.

SPX

Jobless claims, Exxon results due

July 31, 2014

Initial jobless claims and Exxon Mobil's earnings are the main events on today's calendar. Economists forecast that 310,000 Americans sought unemployment benefits for the first time.

SPX

Stocks rally on strong GDP growth

July 30, 2014

S&P 500 futures accelerate to the upside after second-quarter economic growth and ADP's payroll report beat estimates.

SPX

GDP, Fed, job data lead calendar

July 30, 2014

ADP's private-sector payrolls report for July gets the ball rolling at 8:15 a.m. ET, followed 15 minutes later by second-quarter GDP. The Fed announces its monetary policy at 2 p.m. ET.

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.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER