Learn the trade here. Make it on tradeMONSTER

Options Trading News

September 27, 2013  Fri 7:14 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are falling this morning on signs that a worsening political situation in Washington may lead to a government shutdown next week.

S&P 500 futures are off about 0.4 percent, while most of Europe is down about half a percent. Most Asian markets posted small gains in the overnight session.

The S&P 500 has been trending strongly higher all year and is now attempting to hold support near the top of the price range that's taken shape since May. While it's recently benefited from an improving global economy, uncertainty has been increasing in the United States.

One concern is the future of interest rates because the Federal Reserve surprised investors by not reducing monetary stimulus last week. That leaves questions about when and how it will remove support measures.

More importantly in the short term is passage of the budget and limits on the nation's debt. A budget needs to be passed by Tuesday, Oct. 1, to keep the government running. Republicans also raised the stakes yesterday evening by trying to link an increase in the debt ceiling to political goals such as spending cuts. That increases the likelihood of a default by mid-October.

The nervousness is driving up the price of safe-haven assets such as the Japanese yen and U.S. Treasury bonds. Gold climbed and silver rose about 1 percent, while copper is up half a percent. Oil is down fractionally and agricultural foodstuffs are mixed. Currencies associated with global growth--namely the Australian and Canadian dollars--fell, while the euro inched higher.

In addition to uncertainty about the budget, next week is heavy on economic news. It begins with manufacturing numbers from Asia, Europe, and the United States before focusing on key employment numbers later in the week. (See our related calendar story)

In company-specific news, Nike is indicated up 7 percent and Finish Line is climbing 10 percent after both companies reported better-than-expected quarterly results. IT consultancy Accenture dropped 5 percent after issuing weak guidance. Drug developer Nektar Therapeutics cratered 25 percent after its NKTR-181 pain killer failed to meet its primary endpoint in a Phase 2 study.
Share this article with your friends


Related Stories

SPX

Stocks remain lower after job data

October 1, 2014

S&P 500 futures are near their lows of the morning despite better-than-expected private-sector payroll gains. European markets are down more than half a percent.

SPX

ADP, ISM data dominate calendar

October 1, 2014

Today's big event comes at 8:15 a.m. ET when ADP announces private-sector payroll gains for September. The Institute for Supply Management's manufacturing index at 10 a.m. ET.

SPX

Futures higher ahead of key data

September 30, 2014

S&P 500 futures are up 0.36 percent, while the Nasdaq 100 is indicated higher by 0.6 percent. Europe rose as well, led by gains of about 1 percent in France, Spain, and Italy. Asia was mixed overnight.

SPX

Case-Shiller, consumer data on tap

September 30, 2014

Today's agenda brings a mix of items, including European inflation data, the Case-Shiller index of home prices, the Chicago Purchasing Managers Index, and consumer confidence.

SPX

Stocks lower ahead of busy week

September 29, 2014

S&P 500 futures are down 0.6 percent, similar to declines in Europe. Asia was mixed overnight, with Hong Kong falling almost 2 percent after fierce pro-democracy protests.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

How Can Equity Traders Beat the Algos

Education & Strategy

When to go in or out of the money

Some of our subscribers recently asked how to gauge positions that are in or out of the money, so I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER