OptionsHouse

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

Stocks up on earnings, Greek hopes

April 24, 2015

S&P 500 futures are higher by 0.1 percent, while the Nasdaq is up 0.6 percent. German equities climbed 0.6 percent after its Ifo business-confidence index beat expectations.

SPX

Greece, durable goods top agenda

April 24, 2015

Greek officials meet with Eurozone creditors, and Germany's Ifo business-climate index is also due early in the morning. U.S. durable-goods orders are due at 8:30 a.m. ET.

SPX

Global data weighs on U.S. futures

April 23, 2015

S&P 500 futures fell 0.3 percent. Frankfurt is down 1.3 percent, while Paris slid 1 percent and Milan is down 0.9 percent. Most Asia markets eked out small gains overnight.

SPX

Jobless claims, home sales on tap

April 23, 2015

Initial jobless claims are expected to fall to 288,000 from 294,000 the previous week. New home sales are seen slowing to a 520,000 annualized pace in March from 539,000 in February.

SPX

Stocks down, stay trapped in range

April 22, 2015

S&P 500 futures are down 0.25 percent, while European indexes are mostly down about half a percent. Asia rallied again overnight, with Shanghai surging 2.5 percent and Tokyo up more than 1 percent.

Invest Like a Monster - San Diego: June 26-27

Premium Services

Education & Strategy

Vega

There is another Greek which measures the effects on an option's price buy changing the amount of extrinsic value in the option, and that Greek is Vega...

View more education articles »