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 Post subject: July 2nd Monday 2012 Emini TF ($TF_F) points +3.60
PostPosted: Mon Jul 02, 2012 10:02 pm 
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)

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click on the above image to view today's performance verification

Price Action Trade Performance for Today: +3.60 points or $360 dollars in the Russell 2000 Emini TF ($TF_F) Futures.
Russell 2000 Emini TF Futures - 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE.
S&P 500 Emini ES Futures - 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup.

In addition, all trades were posted real-time in the free #FuturesTrades chat room. You can read today's #FuturesTrades trading chat room logs for details (e.g. time, price, contract size) about each one of my trades from entry to exit along with price action commentary as the trade traversed in comparison to what's shown in the above image...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=106&t=1263.

To join our free chat room...log-in instructions located at a different forum @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=5&t=630

Also, posted below are direct links to information about my price action trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis).

Image WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718.

Image Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support prior to purchasing the Volatility Trading Report (VTR).

Image Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=163&t=1526

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Market Summaries

The below summaries by Bloomberg, CNNMoney and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/IMF actions or any important global economic events that had an impact on today's price action. Simply, I'm a strong believer that many variables (key market events) causes key changes in supply/demand and volatility that results in swing points and strong continuation price actions. Thus, I pay attention to these key market events from one trade to the next trade to give me the market context for my technical analysis. Just as important, these summaries becomes my archives to allow me to understand what was happening on any given trading day in the past...something I can not get from my broker statements alone.

Stocks End Mixed After Late-Day Recovery

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click on the above image to view today's price action of key markets

NEW YORK (CNNMoney) -- U.S. stocks ended narrowly mixed Monday, recovering from earlier weakness, after a report showed manufacturing activity unexpectedly contracted in June for the first time in nearly three years.

The Dow Jones industrial average (INDU) fell 9 points, or 0.1%, to end at 12,871. Du Pont (DD, Fortune 500), General Electric (GE, Fortune 500) and Bank of America (BAC, Fortune 500) dragged on the index, while JPMorgan (JPM, Fortune 500), AT&T (T, Fortune 500) and American Express (AXP, Fortune 500) led gainers.

The S&P 500 (SPX) rose 3 points, or 0.2%, to 1365. The Nasdaq (COMP) added 16 points, or 0.5%, to 2,951.

Stocks came under pressure after the Institute for Supply Management said its June Purchasing Manufacturers Index fell to 49.7, down from 53.5 in May. It was the first time the index fell below 50, which signals expansion in the sector, since July 2009. Economists surveyed by Briefing.com were expecting the index to decline to 51.5.

The report raised concerns the U.S. economy is being dragged down by weakness in Europe. But traders said the selling was tempered by hopes the latest economic data would prompt more stimulus from the Federal Reserve.

"The global slowdown caught up with U.S. manufacturing in June," said Nigel Gault, chief U.S. economist at IHS Global Insight. "The U.S. still looks in better shape than the rest of the world, but the headline ISM manufacturing index joined many similar indexes elsewhere in the world below the breakeven 50-mark."

Earlier Monday, an industry report showed manufacturing activity in the euro area remained in decline during June, while unemployment there rose to a record high. Chinese manufacturing activity declined slightly, but remained above the level indicating expansion.

* Manufacturing sector contracts for first time since 2009

Traders said volumes were down Monday as many investment professionals are taking the week off. U.S. markets will close early Tuesday and remain dark Wednesday for the 4th of July holiday.

"It's going to be a slow week overall, and that will definitely impact trading volumes," said Bernard Kavanagh, vice president of portfolio management for St. Louis-based broker Stifel Nicolaus.

Kavanagh said he was surprised stocks didn't fall further given last week's strong gains. He said some traders may be betting the Fed will launch a third round of asset purchases to stimulate economic growth. The ISM report, he said, "is friendly for people expecting the Fed to step in."

Last Friday marked the end of the first half of the trading year, with all three indexes posting strong gains for the six months. The Dow rose 5.3%. The Nasdaq surged 12.5%, and the S&P added 8%.

Stocks rallied Friday after eurozone political leaders agreed on steps to stabilize credit markets and strengthen the region's banking system. But many of the details have yet to be finalized, and implementing the plans could prove politically difficult.

"There's no follow-through from the euphoria over getting something constructive in the eurozone after 19 tries," said Art Hogan, a managing director at Lazard Capital Markets.

* Fear & Greed Index

World markets: European stocks closed higher Monday. Britain's FTSE 100 (UKX) and the DAX (DAX) in Germany both added 1.1%, while France's CAC 40 (CAC40) gained 1.3%.

Eurostat, the European Union statistics office, released a report showing a new record unemployment rate of 11.1% for May, as 88,000 people were added to the jobless pool.

Separately, the Markit Economics survey of eurozone purchasing managers was unchanged in June at 45.1, marking nearly a year of decline in manufacturing activity.

Asian markets ended mixed. The Shanghai Composite (SHCOMP) ended just above breakeven, while Japan's Nikkei (N225) closed barely lower. Hong Kong markets were closed for a holiday.

In China, the National Bureau of Statistics said Sunday that the Manufacturing Purchasing Managers Index for June fell to 50.2 from 50.4 in May. The reading was just above the 50 mark that divides expansion from contraction in the sector.

The negative outlook of the report was compounded by the Monday release of HSBC's monthly Purchasing Managers' Index, which fell in June and showed the second quarter ended with the lowest value since the start of 2009.

Investors are keeping a close eye on Chinese manufacturing, given concerns about the country's slowing growth.

Economy: U.S. construction spending in May increased 0.7%, compared with the same month last year, which was more than the expected 0.2%.

Later this week, the Bureau of Labor Statistics will release the jobs report for June.

Companies: U.S. authorities said global drug company GlaxoSmithKline (GSK) agreed to pay $3 billion to settle a number of criminal and civil charges, including "unlawful promotion" of certain prescription drugs. Shares rose 1.7%.

Barclays (BCS) on Monday announced the resignation of its chairman, Marcus Agius, due to the scandal surrounding the bank's manipulation of interbank lending rates in 2008 and 2009.

* Avoid common investing mistakes

Shares of electronics maker Micron Technology (MU, Fortune 500) soared on news that it announced a $2.5 billion deal to buy Japanese chip maker Elpida Memory. The move secures the company a spot as a major supplier to smartphone and tablet makers, including Apple (AAPL, Fortune 500).

Continuing Monday's tech company acquisitions, Dell (DELL, Fortune 500) agreed to buy IT management software provider Quest (QSFT) for $2.4 billion.

European aircraft manufacturer Airbus announced plans Monday to build a new facility in Alabama to produce commercial airliners.

Currencies and commodities: The dollar rose against the euro and British pound but fell versus the Japanese yen.

Oil for August delivery dropped $1.21 to settle at $83.75a barrel.

Gold futures for August delivery fell $6.50 to $1,597.70 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.62% from 1.66% on Friday.

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Market Update

4:15 pm : The major equity averages finished the day mixed but near highs, spending the day recovering from a disappointing ISM Index, which knocked the wind out of stocks at 10:00 ET. The S&P 500 closed with a 0.3% gain and the Nasdaq Composite finished 0.6% higher. However, the Dow Jones Industrial Average was the laggard today, finishing 0.1% lower as Industrials and Materials stocks weighed.

Before the open, there were there were several major deals announced. Quest Software (QSFT 27.82, +0.01) was acquired by Dell (DELL 12.39, -0.12) for $28 per share, representing only a slight premium to Friday's closing price for Quest since the deal that had been widely rumored prior to this morning's announcement... Bristol-Myers Squibb (BMY 36.02, +0.07) will acquire Amylin Pharmaceuticals (AMLN 30.70, +2.50) for $31.00 per share in cash, representing an aggregate purchase price of ~$5.3 billion and 10% premium to Friday's closing price for Amylin. The total value of the transaction, including Amylin's net debt and a contractual payment obligation to Eli Lilly (LLY 42.99, +0.08) together totaling about $1.7 billion, is ~$7 billion... Additionally, Brightpoint (CELL 9.01, +3.60) will be acquired by Ingram Micro (IM 17.55, +0.08) for $9.00 per share in cash, representing a 66% premium to Friday's closing price for Brightpoint... Micron (MU 6.55, +0.24) finished higher by 4% after acquiring Japanese chip maker Elpida for about $750 mln... Finally, Lincare (LNCR 41.34, +7.32) will be acquired by The Linde Group for $41.50 per share in cash, representing a 22% premium to Friday's closing price for Lincare. The total consideration of the transaction will be $4.6 billion.

After a modestly higher open, equities saw a negative reaction to a disappointing ISM Index reading, which slipped below 50.0 for the first time since July 2009. The index fell from 53.5 in May to 49.7 in June. The Briefing.com consensus expected the ISM Index to fall to 52.2. The start of a contraction cycle in manufacturing is notable, but the data have been teetering on the edge of a contraction for quite some time. A better than expected construction spending reading was a slight offset, as it jumped 0.9% in May after increasing an upwardly revised 0.6% in April. The Briefing.com consensus expected construction spending to increase 0.2%. The pickup in construction was driven primarily by growth in the private residential construction sector.

Equities moved lower on the econ data, while treasuries saw buying interest send the 10-year note yield down 9 bps to 1.57%.

Since this morning's data, equities have been range-bound in quiet, pre-holiday trading conditions. The afternoon was uneventful.

No companies reported earnings after tonight's close, and none are scheduled to report earnings tomorrow.

Keep in mind that U.S. markets close early tomorrow and will be closed all day on Wednesday for the Fourth of July holiday. Markets will resume their normal hours on Thursday. Select retailers are expected to report June Sales before the market re-opens. Also note that the Bank of England and the ECB will issue new policy statements on Thursday morning. There is also an abundance of employment data due out on Thursday and Friday, highlighted by Friday's June Employment Report from the government. Next week, Alcoa (AA 8.62, -0.13) kicks off earnings season on Monday after the close.DJ30 -8.70 NASDAQ +16.18 SP500 +3.35 NASDAQ Adv/Vol/Dec 1601/1.8 bln/900 NYSE Adv/Vol/Dec 2151/736 mln/904

3:30 pm : Crude oil was under selling pressure for all of pit trade. The energy component popped to a session high of $84.42 per barrel following headlines suggesting that Iran lawmakers are drafting a bill to propose blocking the Strait of Hormuz for oil tankers. However, the move was short lived as oil immediately consolidated and later fell to a session low of $82.06 per barrel. Crude spent the afternoon session inching higher and settled floor trade with a 1.5% loss at $83.71 per barrel.

Despite struggling in negative territory and touching a floor session low of $2.74 per MMBtu, natural gas was able to erase today's losses as buyers stepped in during afternoon action and settled pit trade unchanged at $2.82 per MMBtu.

Gold and silver came off their respective pit session lows of $1589.00 per ounce and $27.31 per ounce that were set in morning action and trended upwards as the stronger dollar consolidated. The metals reduced most of their losses so that gold settled 0.4% lower at $1597.70 per ounce while silver finished with a loss of 0.6% at $27.50 per ounce.DJ30 -46.09 NASDAQ +4.35 SP500 -1.07 NASDAQ Adv/Vol/Dec 1305/1411 mln/1186 NYSE Adv/Vol/Dec 1826/470 mln/1185

3:00 pm : The broader market is near post-data highs as the Industrials (XLI 35.25 -0.42) sector continues to be the primary laggard this session after the ISM index showed an unexpected contraction in manufacturing activity for the month of June.

The defensive Utilities (XLU 37.17 +0.18) and Consumer Staples (XLP 34.92 +0.15) sectors are outperforming the broader market, up 0.5% and 0.4%, respectively, followed by modest gains (+0.3%) in the Technology and Financial sectors.

The consumer discretionary sector is roughly unchanged. Select retailers are expected to report June Sales before the market re-opens (following the Fourth of July Holiday) on Thursday morning.DJ30 -38.63 NASDAQ +5.45 SP500 -0.35 NASDAQ Adv/Vol/Dec 1264/1.30 bln/1213 NYSE Adv/Vol/Dec 1848/439 mln/1182

2:30 pm : The market is drifting higher as the afternoon progresses, with quiet pre-holiday trading conditions setting in shortly after this morning's disappointing ISM data. The major equity averages remain mixed, but they are currently trading at their best levels since the release of the data.

There are no companies scheduled to report earnings after tonight's close or prior to tomorrow's open, and corporate news in general is expected to be light into the holiday.

Things should pick up Thursday and Friday with an abundance of employment data due out, highlighted by Friday's monthly government employment report.DJ30 -31.26 NASDAQ +5.34 SP500 -0.12 NASDAQ Adv/Vol/Dec 1250/1.2 bln/1218 NYSE Adv/Vol/Dec 1813/402 mln/1197

2:00 pm : The major indices continue to trade mixed. Within the sectors, industrials and materials are underperforming with losses around 1%. Telecom is the top sector, up 1%.

Best Buy (BBY 22.20, +1.24) is still posting a substantial gain but has retreated from its earlier highs after Reuters reported that the previous Chairman's buyout proposal is still in early stages.DJ30 -49.04 NASDAQ +0.89 SP500 -2.18 NASDAQ Adv/Vol/Dec 1213/1110/1253 NYSE Adv/Vol/Dec 1686/352.14/1282

1:35 pm : The major indices remain mixed. The Nasdaq is managing to trade slightly positive, while the S&P 500 and Dow have been unable to make it out negative territory since the ISM data release shortly after the open.DJ30 -39.39 NASDAQ +3.83 SP500 -0.95 NASDAQ Adv/Vol/Dec 1201/1040/1241 NYSE Adv/Vol/Dec 1690/331.2/1267

1:00 pm : The major averages are mixed after a disappointing ISM Index knocked the wind out of stocks at 10:00 ET. The S&P 500 is now showing a 0.2% decline while the Nasdaq 100 is slightly higher, with both indices trading at the upper end of their post-data ranges.

Before the open, there were there were several major deals announced. Quest Software (QSFT 27.79, -0.02) was acquired by Dell (DELL 12.36, -0.15) for $28 per share, representing only a slight premium to Friday's closing price for Quest since the deal that had been widely rumored prior to this morning's announcement... Bristol-Myers Squibb (BMY 35.82, -0.13) will acquire Amylin Pharmaceuticals (AMLN 30.7, +2.50) for $31.00 per share in cash, representing an aggregate purchase price of ~$5.3 billion and 10% premium to Friday's closing price for Amylin. The total value of the transaction, including Amylin's net debt and a contractual payment obligation to Eli Lilly (LLY 42.91, 0.00) together totaling about $1.7 billion, is ~$7 billion... Additionally, Brightpoint (CELL 8.84, +3.43) will be acquired by Ingram Micro (IM 17.69, +0.22) for $9.00 per share in cash, representing a 66% premium to Friday's closing price for Brightpoint. The deal is expected to be accretive to Ingram's earnings per share by at least 18 cents in 2013 and 35 cents in 2014... Finally, Lincare (LNCR 41.32, +7.30) will be acquired by The Linde Group for $41.50 per share in cash, representing a 22% premium to Friday's closing price for Lincare. The total consideration of the transaction will be $4.6 billion.

After a modestly higher open, equities saw a negative reaction to a disappointing ISM Index reading, which slipped below 50.0 for the first time since July 2009. The index fell from 53.5 in May to 49.7 in June. The Briefing.com consensus expected the ISM Index to fall to 52.2. The start of a contraction cycle in manufacturing is notable, but the data have been teetering on the edge of a contraction for quite some time. A better than expected construction spending reading was a slight offset, as it jumped 0.9% in May after increasing an upwardly revised 0.6% in April. The Briefing.com consensus expected construction spending to increase 0.2%. The pickup in construction was driven primarily by growth in the private residential construction sector.

Equities moved lower on the data, while treasuries have seen buying interest send the 10-year note yield down 9 bps to 1.57%. Since the data however, equities have been range-bound in quiet, pre-holiday trading conditions.

Keep in mind that U.S. markets close early tomorrow and will be closed all day on Wednesday for the Fourth of July holiday. Markets will resume their normal hours on Thursday and the monthly employment report is due out Friday morning. Next week, Alcoa (AA 8.62, -0.13) kicks off earnings season on Monday after the close.DJ30 -42.04 NASDAQ +4.34 SP500 -1.30 NASDAQ Adv/Vol/Dec 1214/968 mln/1202 NYSE Adv/Vol/Dec 1729/320 mln/1284

12:35 pm : Stocks continue to trade with a modest loss to kick off the holiday shortened week.

However, Best Buy (BBY 23.04 +2.08) is strong today following reports that founder and former chairman Richard Schulze is preparing an offer to buy the company. He already owns 21% of the electronics retailer.

Lighting company Acuity Brands (AYI 59.17 +8.26) is also notably higher following a better than expected earnings report this morning.DJ30 -59.90 NASDAQ -0.49 SP500 -3.45 NASDAQ Adv/Vol/Dec 1116/892 mln/1294 NYSE Adv/Vol/Dec 1633/277 mln/1368

12:00 pm : Trading has been confined to a relatively tight range after getting the initial downside response to the disappointing ISM Index. The major equity averages have held modest losses since the data was reported.

The Materials and Industrials sectors are the weakest, with losses of 1.2%, vs. a 0.3% decline in the broader market. On the other hand, Telecom is the strongest sector, with a 2.6% gain. Sprint (S 3.41, +0.16) is a leader within Telecom.DJ30 -59.03 NASDAQ -2.17 SP500 -4.03 NASDAQ Adv/Vol/Dec 1073/801 mln/1324 NYSE Adv/Vol/Dec 1527/268 mln/1461

11:30 am : The major indices continue to trade with modest losses. GlaxoSmithKline (GSK 46.12, +0.55) will pay $3 bln to the U.S. government in the largest U.S. health care fraud settlement in U.S. history, according to reports. The news had a limited impact on shares of GSK since the agreement was previously announced.DJ30 -74.74 NASDAQ -4.38 SP500 -5.41 NASDAQ Adv/Vol/Dec 1066/670.64/1290 NYSE Adv/Vol/Dec 1418/216/1449

11:00 am : The S&P 500 remains in the red with a modest loss following the worse-than-expected June ISM reading. As equities stall, Treasuries are enjoying buying interest with the 10-year note yielding 1.58%.DJ30 -66.37 NASDAQ -0.41 SP500 -4.12 NASDAQ Adv/Vol/Dec 1065/530.4/1260 NYSE Adv/Vol/Dec 1392/173/1464

10:30 am : Commodities are starting off lower on this Monday morning, while the dollar index is showing strength.

In the energy space, Aug crude oil spiked about $1.50 near $84.50/barrel a short while ago following news that Iranian lawmakers are drafting a bill to propose blocking the Strait of Hormuz for oil tankers. Oil has basically erased all of those gains following that spike higher and are now -2.1% at $83.21/barrel, which follows Monday's gain of 9.4%.

July natural gas sold off sharply this morning and hit a morning low of $2.74. Before the sell-off, nat gas was near the unchanged mark at $2.82. Now since pit trading began, natural gas has since erased all of its losses following a strong surge higher. Nat gas is currently -0.8% at $2.80/MMBtu.

In metals, August gold and July silver have been in negative territory all morning. Both precious metals have recovered off of their session lows (Gold $1587.40, Silver $27.20), especially silver and are currently showing modest losses and they are now staging a small sell off. Gold is now -0.7% at $1593.50 and silver is -1.0% at $27.34/oz.DJ30 -51.50 NASDAQ +1.50 SP500 -3.32 NASDAQ Adv/Vol/Dec 1482/696.3 mln/1394 NYSE Adv/Vol/Dec 1457/157 mln/1396

10:05 am : The June ISM Index came in worse than expected at 49.7 vs. the 52.2 Briefing.com consensus, and down from May's 53.5 reading. This data was a disappointment. The better than expected May Construction Spending was a minor offset, as it rose 0.9% month/month vs. the +0.2% Briefing.com consensus.

Equities have seen a sharp negative response to the ISM data, as the S&P is now -0.4% after showing slight gains ahead of the release.DJ30 -52.13 NASDAQ -6.28 SP500 -4.34 NASDAQ Adv/Vol/Dec 1006/324 mln/1231 NYSE Adv/Vol/Dec 1374/119 mln/1468

09:45 am : Stocks are showing slight gains in early trading, about in-line with the futures indications just ahead of the open. The June ISM Index and May Construction Spending data will be released at 10:00 ET, which could impact the broader market. Following the response to the data however, trading action could lighten up ahead of the 4th of July holiday, as tomorrow is a half day and markets are closed on Wednesday.DJ30 +10.60 NASDAQ +7.30 SP500 +2.82 NASDAQ Adv/Vol/Dec 2175/191 mln/376 NYSE Adv/Vol/Dec 2960/95 mln/404

09:28 am : [BRIEFING.COM] S&P futures vs fair value: +1.70. Nasdaq futures vs fair value: +3.00. Futures are pointing to a slight bid at the open. The quiet pre-market action follows a relatively quiet overnight session and a mixed performance in overseas markets, with strength in Europe and relatively unchanged action in Asia. As mentioned in greater detail in earlier updates, there were several major pieces of M&A news announced in the U.S. this morning.

Today's U.S. economic calendar includes the June ISM Index and May Construction Spending data, both due out at 10:00 ET. The ISM index typically has more impact than Construction Spending.

Keep in mind that U.S. markets close early tomorrow and will be closed all day on Wednesday for the Fourth of July holiday. Markets will resume their normal hours on Thursday.

09:04 am : [BRIEFING.COM] S&P futures vs fair value: +2.50. Nasdaq futures vs fair value: +4.00. Futures are showing a slight bid as we start a holiday-shortened week. The quiet pre-market action follows a relatively quiet overnight session and a mixed performance in overseas markets, with strength in Europe and relatively unchanged action in Asia. Purchasing managers surveys were released in China and Europe. In China, the august index fell to 48.2 for June from 48.4 in May. In Europe, the index held at an already low 45.1 in June, unchanged from May.

Today's U.S. economic calendar includes the June ISM Index and May Construction Spending data, both due out at 10:00 ET. The ISM index typically has more impact than Construction Spending.

In U.S. corporate news, there were several major deals announced this morning. Quest Software (QSFT 27.76, -0.05) was acquired by Dell Inc. (DELL 12.51, +0.00) for $28 per share, representing a slight premium to Friday's closing price for Quest since the deal that had been widely rumored prior to this morning's announcement... Bristol-Myers Squibb (BMY 35.95, +0.00) will acquire Amylin Pharmaceuticals (AMLN 30.78, +2.58) for $31.00 per share in cash, representing an aggregate purchase price of ~$5.3 billion and 10% premium to Friday's closing price for Amylin. The total value of the transaction, including Amylin's net debt and a contractual payment obligation to Eli Lilly (LLY 42.91, 0.00) together totaling about $1.7 billion, is ~$7 billion... Additionally, Brightpoint (CELL 8.89, +3.48) will be acquired by Ingram Micro Inc. (IM 17.47, +0.00) for $9.00 per share in cash, representing a 66% premium to Friday's closing price for Brightpoint. The deal is expected to be accretive to Ingram's earnings per share by at least 18 cents in 2013 and 35 cents in 2014... Finally, Lincare Holdings (LNCR 41.20, +7.18) will be acquired by The Linde Group for $41.50 per share in cash, representing a 22% premium to Friday's closing price for Lincare. The total consideration of the transaction will be $4.6 billion.

Keep in mind that U.S. markets close early tomorrow and will be closed all day on Wednesday for the Fourth of July holiday. Markets will resume their normal hours on Thursday.

Next week, Alcoa (AA 8.75, +0.00) kicks off earnings season.

08:33 am : [BRIEFING.COM] S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: -0.80. Futures have recently given up their early bid and are now trading nearly unchanged. There wasn't any specific catalyst that led to retracement of early gains, but it does coincide with a move to lows of the day in the euro. The euro is now lower by ~0.6%, currently trading at $1.2589. European equity markets have also pared gains, but they continue to show a decent degree of strength, with Germany up 1.0% and France up 1.3%. Spanish and Italian debt yields are also lower today, which is seen as a positive. Spain's 10-year yield is lower by 5 basis points at 6.20% while Italy's 10-year yield is lower by 12 basis points at 5.68%. Note that the Bank of England and the ECB will issue new policy statements on Thursday morning.

07:59 am : [BRIEFING.COM] S&P futures vs fair value: +3.60. Nasdaq futures vs fair value: +4.50. Futures are showing a modest bid as we start a holiday-shortened week. S&P futures are currently up 0.2% vs. fair value after a relatively quiet overnight session.

The early U.S. bid follows a mixed performance in overseas markets, with strength in Europe and relatively unchanged action in Asia. Major European markets are holding solid gains at their mid-day, with Germany's benchmark index up 1.1%, the UK FTSE up 0.7% and France's main market index up 1.2%. In Asia, Japan and China finished flat, while Hong Kong was closed for a holiday.

In U.S. corporate news, there were several major deals announced this morning. Bristol-Myers Squibb (BMY 35.95, +0.00) will acquire Amylin Pharmaceuticals (AMLN 30.78, +2.58) for $31.00 per share in cash, representing an aggregate purchase price of ~$5.3 billion and 10% premium to Friday's closing price for Amylin. The total value of the transaction, including Amylin's net debt and a contractual payment obligation to Eli Lilly (LLY 42.91, 0.00) together totaling about $1.7 billion, is ~$7 billion... Additionally, Brightpoint (CELL 8.89, +3.48) will be acquired by Ingram Micro Inc. (IM 17.47, +0.00) for $9.00 per share in cash, representing a 66% premium to Friday's closing price for Brightpoint. The deal is expected to be accretive to Ingram's earnings per share by at least 18 cents in 2013 and 35 cents in 2014... Finally, Lincare Holdings (LNCR 41.20, +7.18) will be acquired by The Linde Group for $41.50 per share in cash, representing a 22% premium to Friday's closing price for Lincare. The total consideration of the transaction will be $4.6 billion.

In other news, Barclays (BCS 10.67, +0.38) shares are higher by 3.7% after reports indicated that the company's Chairman has resigned following the recent LIBOR Probe.

Today's economic calendar includes the June ISM Index and May Construction Spending data, both due out at 10:00 ET.

Keep in mind that U.S. markets close early tomorrow and will be closed all day on Wednesday for the Fourth of July holiday. Markets will resume their normal hours on Thursday.

06:46 am : [BRIEFING.COM] S&P futures vs fair value: +1.80. Nasdaq futures vs fair value: +0.50.

06:46 am : Nikkei...9003.48...-3.30...0.00. Hang Seng...Holiday.........

06:46 am : FTSE...5600.91...+29.80...+0.50%. DAX...6470.98...+54.70...+0.90%.

Special thanks to Bloomberg, CNNMoney and Yahoo! Finance for their market summaries. gm

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
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