Stocks are heading lower this morning after failing to hold long-term highs yesterday.
Futures on the S&P 500 and Nasdaq 100 declined by about one-quarter of a percent, while the Dow Jones Industrial Average is facing smaller losses. On Tuesday, the SPX reversed after touching its highest level since mid-2008, while the NDX returned to prices last seen more than a decade ago.
Asian and European bourses are also lower after a widening Japanese trade deficit revived fears about the global economy. Hong Kong's Hang Seng Index and London's FTSE 100 led with declines of more than 1 percent. Attention also remains focused on the Greek and Spanish debt crises, although major news is considered unlikely before the Sept. 6 European Central Bank meeting.
Today's downside in equities also comes after the yield on the benchmark 10-year U.S. Treasury yield hit resistance at its 200-day moving average. Given that stocks and bonds tend to move in opposite directions, some traders may consider that price action as a reason to reduce risk.
Commodities and foreign exchange painted a modestly bearish picture as well, with the euro down slightly against the U.S. dollar. The Australian and Canadian dollars, which tend to be correlated with stocks, also fell. Weakness in the Japanese yen following that trade report, however, seems to be preventing a wider flight to risk aversion.
Oil and copper edged lower by about one-third of a percent. Most agricultural foodstuffs declined by less than 1 percent. Gold and silver also posted small losses.
In company-specific news, PC maker Dell is falling by almost 6 percent after second-quarter revenue missed estimates and management lowered guidance. Kitchen retailer Williams Sonoma and homebuilder Toll Brothers are gaining on strong results.
Trading News
Related Stories
SPX
Stocks parked in neutral before Fed
June 19, 2013
Equities are little-changed this morning after a strong close yesterday as investors brace for the Federal Reserve's announcement at 2 p.m. ET.
SPX
Market attention fixed squarely on Fed
June 19, 2013
The main question is whether the pace of asset purchases will be slowed, though it isn't clear how much of a reduction is currently priced into stocks.
SPX
Futures edging higher at key levels
June 18, 2013
S&P 500 futures are fractionally higher, while most overseas markets have posted small gains. Perhaps most importantly, the Japanese yen continued to weaken against the U.S. dollar and euro.
SPX
Stocks set to begin the week higher
June 17, 2013
S&P 500 futures are up more than half a percent while European indexes are gaining more than a full percentage point. Perhaps most important was a rally of almost 3 percent in Tokyo.
SPX
Futures hover after yesterday's rally
June 14, 2013
S&P 500 futures are fractionally higher and European indexes are seesawing in a range, though mostly positive. Asia gained in the overnight session, led by a 2 percent move in Tokyo.
