Learn the trade here. Make it on tradeMONSTER

Options Trading News

August 27, 2013  Tue 7:10 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are falling today on concerns about a potential war against Syria.

S&P 500 futures declined half a percent but have been trying to rebound from their lows of the session. Europe is down by more than 1 percent, and most Asian markets declined as well. The perceived risk is driving up precious metals and oil by more than 1 percent.

Equities were positive yesterday before Secretary of State John Kerry cited "undeniable" evidence that Damascus had used chemical weapons against rebels. The statement hints that the United States desires to escalate a conflict that's been contained for more than two years. It's the first political event to threaten the rally in stocks since worries about Cyprus in March.

The news comes with few major economic events or corporate earnings to affect sentiment. It also occurs before Labor Day, when volumes are light. In additional to the Syria news, Treasury Secretary Jack Lew signaled yesterday that the White House could play hardball with Congress over the national debt limit.

The S&P 500 had been showing signs of bouncing at a key support level from June but now seems to be hitting resistance at its 10-day moving average. If the index breaks last week's low of 1639, some chart watchers may expect a deeper correction toward 1600.

Foreign-exchange traders are in full risk-aversion mode, buying the safe-haven Japanese yen and U.S. dollar while dumping almost every other currency. Most agricultural commodities are lower, although copper is now trying to rebound from earlier losses. Gold continues to rally above the key 1400 level.

Today's economic events include the Case-Shiller Index of home prices at 9 a.m. ET and consumer confidence one hour later. The rest of the week is relatively light, but the calendar picks up starting next Tuesday with the Institute of Supply Management's key manufacturing index and monthly employment figures later in the week.

In company-specific news, retailer Tiffany is up 2 percent after earnings beat forecasts and management raised its guidance amid strong demand in China.
Share this article with your friends


Related Stories

SPX

Earnings, manufacturing on tap

April 23, 2014

In addition to HSBC/Markit's preliminary purchasing managers indexes for China and Europe, we will get earnings from Boeing, Delta Air Lines, Biogen Idec, EMC, and Dow Chemical this morning.

SPX

Stocks hover, pausing from rebound

April 22, 2014

S&P 500 futures are little-changed as the index pauses at a resistance level, but the Nasdaq 100 is continuing to claw its way back from its recent selloff.

SPX

Flood of earnings leads calendar

April 22, 2014

McDonald's, Travelers, United Technologies, Xerox, Lockheed Martin, Lexmark, AK Steel, and Arch Coal announce quarterly results before the opening bell.

SPX

Stocks inch higher amid earnings

April 21, 2014

Stocks are inching higher again as investors anticipate a deluge of first-quarter results. S&P 500 and Nasdaq 100 futures are up slightly so far this morning.

SPX

Earnings are docket's main focus

April 21, 2014

Attention continues to focus on corporate earnings this week. Halliburton, Hasbro, and SunTrust Banks get the ball rolling this morning, followed by Netflix and Rambus after the close.

Premium Services

Education & Strategy

Options and high-frequency trading

There has been much talk lately of high-frequency trading (HFT) and what it does--or doesn't--mean to the markets and retail...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER