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Today is a quarterly expiration day for index options, stock options, index futures, and single-stock futures. Therefore, it will be an active day of trading that is expected to translate into heavy volume.
It is unclear how all of that will ultimately translate for the stock market, which is indicated to start today's session on a lower note.
Currently, the S&P 500 futures are down 21 points and are trading 0.4% below fair value, the Nasdaq 100 futures are down 101 points and are trading 0.6% below fair value, and the Dow Jones Industrial Average futures are down 158 points and are trading 0.4% below fair value.
This languid disposition is rooted in macro and earnings growth concerns following the reports and commentary after yesterday's close from FedEx (FDX), Nike (NKE), Lennar (LEN), and Micron (MU). Separately, U.S. Steel (X) and Nucor (NUE) both issued earnings warnings for the first quarter.
These stocks are all lower in pre-market action. FDX is down 8.5%; NKE is down 7.4%; LEN is down 3.8%; MU is down 3.2%, X is down 1.4%; and NUE is down 2.7%.
The major airlines, meanwhile, have a headache on their hands -- or at least their customer service representatives do -- on account of London's Heathrow Airport being closed today due to a fire at an electrical substation that supplies the airport.
That will of course get itself worked out in short order, yet misgivings about the economic outlook due to tariff actions, and how resilient consumer spending will remain, continue to keep the market under wraps as earnings growth prospects are being called into question.
That is the crux of the matter that has led to four straight losing weeks for the S&P 500. If the market is going to avoid a fifth straight losing week, the S&P 500 will have to close above 5,638.94. It currently sits at 5,662.89, up 0.4% for the week, yet that cushion has been flattened with this morning's futures trade.
