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Stock futures under pressure

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Stock futures are under heavy selling pressure this morning as September S&P futures (sp02u) fall 14.20 points to 997.50, NASDAQ futures (nd02u) decline 30 points to 1,088.50 and Dow futures (dj02u) drop 120 points to 9,390.

Early this morning, a suicide attacker crashed a bomb-laden vehicle into a guard post outside the U.S. Consulate in Karachi. No Americans were believed killed, but one U.S. Marine and five Pakistani employees in the consulate were lightly injured. The Interior Ministry reported eight dead and 45 injured.

No one has claimed responsibility, but suspicion fell on al-Qaida fugitives who have taken refuge in Pakistan since the collapse of Taliban rule in neighboring Afghanistan.

Treasuries see surge in buying

U.S. Treasuries are seeing YIELDS drop across the board as investors move toward perceived safety. Action in the 10-year is brisk, with buying pushing the 10-year YIELD ($TNX.X) down to 4.841%.

Wireless telecom under pressure

A late warning from Sprint (NYSE:FON) $14.29 on sales for the year, followed by lower-than-expected wireless subscriber targets in its PCS Group (NYSE:PCS) $5.99 is bringing more negativity into the group this morning. Sprint (FON) is getting hit 20% lower to $11.50 and Sprint PCS (PCS) is down 23% at $4.63 over the Redibook ECN.

Key carriers overseas found France Telecom (NYSE:FTE) $15.80 and Deutsche Telekom (NYSE:DT) $9.48 breaking to new lows in overseas trading.

Wireless technologies company Qualcomm (NASDAQ:QCOM) $32.39 is getting hit to the $28.10 level (-13.2%) on the Sprint warning. Deutsche Bank went as far by downgrading the stock.

Fair value

Fair value for the S&P 500 today is $2.00. That price will not change during the session. HL Camp & Company has their computers set for program buying at $3.20 and set for selling at $-0.20. Fair value for the NASDAQ-100 today is $6.83.

If you would like more information on fair value and its calculation, please visit www.programtrading.com.

Jeff Bailey
Senior Market Technician
Option Investor

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