Stocks are following Europe lower today as selling pressure continues and oil remains weak.
S&P 500 futures are down 0.4 percent, and every major index across the Atlantic is lower by more than 1 percent. Asia was mixed overnight, though India slid almost 1 percent as investors took profits in this year's strongest country.
The big question now facing investors is whether individual news events will serve as catalysts, or whether the current bull market is losing steam after a two-year run. Better-than-expected retail sales yesterday triggered buying early, but gains faded in the afternoon. Consumer sentiment at 9:55 a.m. ET is the main item on today's agenda.
The S&P 500 is a little more than 2 percent below its all-time high earlier this month and remains one of the one of the strongest major indexes in the world.
Other countries and asset classes have been crumbling, especially oil and junk bonds. Those two have gained increasing attention in recent sessions as investors fear reduced domestic drilling will hurt the economy.
Two other indicators have also been reflecting caution. The Japanese yen, which tends to move in the opposite direction as stocks, has strengthened from multi-year lows ahead of elections this weekend. Secondly, the CBOE Volatility Index pushed to an eight-week high yesterday despite equities closing in the green.
Utilities, real-estate investment trusts, and bonds have outperformed in recent weeks as investors price in slower growth and tame inflation. optionMONSTER's proprietary researchLAB market scanner also shows some strength in financials and semiconductors. Stocks in areas exposed to global growth, such as energy, materials, and railroad suppliers, have taken a beating.
In company-specific news today, Adobe Systems rose about 7 percent after reporting better-than-expected earnings and revenue. Sherwin-Williams fell 2 percent after predicting sales at the lower end of its previous range.
Oil slide another 1 percent, while most other commodities are little-changed. The euro is higher against most other currencies, but the Japanese yen continues to advance across the board.
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