Europe’s debt crisis is pushing futures slightly lower this morning as reports have Portugal facing mounting pressure to accept a “bailout” package to prevent contagion to other countries. This has caused pressure on the overseas markets as well but it’s not anything that should shock Wall Street.
The economic news will be light today here in the U.S. but the market learned late last night that China’s December exports rose by double digits. China’s exports came in at 18% which produced a $13 billion trade surplus, although growth was down from November’s 35% jump. This has also impacted the markets this morning.
The news will likely fuel the fire on China’s Yuan which the U.S. says gives China’s exporters an unfair price advantage and hurts foreign competitors by making their goods more expensive in the Chinese market. China says Ben Bernanke purchasing $600 billion in government bonds is a way to weaken the dollar and give U.S. exporters an edge. China’s President is scheduled to meet with President Obama this week to discuss a host of topics and you can bet this will be number one.
As we head to press, Dow futures are lower by 31 points to 11,588 while the S&P 500 futures are off by 5 points to 1,262. The Nasdaq 100 futures are down 4 points to 2,269.
We took some profits on Friday and opened a bearish position that has gotten off to a good start. In fact, shares of the stock we profiled Friday are down 10% this morning in pre-market action which should DOUBLE our current options! Subscribers, check the Members Area for the updates.