Options Trading News

January 15, 2013  Tue 7:11 AM CT

Stocks are edging lower this morning as the S&P 500 remains trapped near multiyear highs.

Futures on the benchmark index are down fell by almost half a percent, following similar losses in Europe, with the declines accelerating in the last hour. Asian indexes were mostly higher in the overnight session, with continued strength in mainland China and Japan.

The S&P 500 is vying with the same 1470 area, where it peaked in September, which was then its highest level since late 2007. It's been ascending as worries about political risk in the United States and Europe fades, while the promise of economic growth improves.

Investors are currently bracing for another corporate-earnings season, which today will bring results from homebuilder Lennar. Later in the week, major financials including Goldman Sachs, JP Morgan, Citigroup, and Bank of America will follow.

Foreign-exchange trading is bearish, especially after Japan's finance minister warned that the recent selloff in the yen may trigger inflation. The euro, Australian dollar, and Canadian dollar are each lower against the greenback, while the yen is up across the board.

Commodities are also painting a mostly negative picture, with oil and copper both posting small losses. Agricultural foodstuffs and precious metals are slightly higher.

In company-specific news, Lululemon Athletica will probably fall after its sales guidance came in lower than analysts had expected. Forest Laboratories is also down in early trading after its earnings and revenue missed consensus estimates. Dell is continuing to climb amid takeover speculation, up another 5 percent following its 13 percent move yesterday.
Share this article with your friends

Related Stories


Stocks pause after quick bounce

October 6, 2015

S&P 500 futures are down 0.2 percent, while Europe is fractionally higher. Asia rose 0.5-1 percent overnight, though Chinese markets remain closed for a holiday.


Stocks keep upward momentum

October 5, 2015

S&P 500 futures are up 0.7 percent, while most of Europe is up 2-3 percent. Asian markets rose 1-2 percent overnight.


ISM services lead quiet agenda

October 5, 2015

The agenda quiets this week, though quarterly earnings will begin to flow. European retail sales are the first event early in the session and may have affect sentiment.


Stocks drop after weak jobs report

October 2, 2015

S&P 500 futures are down more than 1 percent after non-farm payrolls missed forecasts. Bonds and gold moved higher.


Monthly job report leads calendar

October 2, 2015

Due at 8:30 a.m. ET, the report is expected to show that 205,000 jobs were added last month, up from August's 173,000 gain.


Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »