I would spell it “SPUs”, as in S&P 500 futures. Despite a GDP number that showed the economy growing a teeny, tiny bit more than expected, consumer spending that was revised upwards by a few iPhones, and stronger exports, big cap stock indices are flirting with the lows they saw back in March. Maybe it’s the fear of an uptick in rates because of higher inflation. Maybe its the “sell” recommendation on GM that GS put out, driving the price of the auto maker to levels not seen since 1955. And Citigroup has dropped to a 10-year low. Apparently, paying my credit card bills on time doesn’t count much on Wall Street. Whatever the reason, it’s putting the hurt on some of the most popular stocks in the CNBC Million Dollar Portfolio challenge. I’m looking down the list, and all I see is red. Even the dollar is falling against the yen and euro.

CAG and PKE were two stocks that contestants bought ahead of earnings reports today. Although both reported profits, they lagged Street expectations and the stocks fell. The options on those stocks weren’t really pricing in any huge fear, so I think the market is a bit surprised and is whacking them accordingly.  We’ll see if Friday brings any relief to everyone’s portfolios.  Keep your fingers crossed.

Tom Preston, thinkorswim, Inc.

thinkorswim, Inc. and its registered employee, Tom Preston, do not solicit or recommend any form of trading in the individual stocks (or their derivatives) mentioned above.  Please do careful, independent research before investing any money as well as weigh the possible consequences on your particular financial situation before doing so.  The risk of loss may be substantial.

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