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 Post subject: October 23rd Tuesday TF, 6E & CL Futures $1730.00
PostPosted: Wed Oct 24, 2012 6:43 am 
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Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
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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: Emini TF ($TF_F) futures @ $1210.00 dollars or +12.10 points, EuroFX 6E futures @ $0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @ $520.00 dollars or +0.52 points. Total Profit @ $1730.00 dollars.

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
CME EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup
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 #TheStrategyLab chat room. You can read today's #TheStrategyLab 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=109&t=1350

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)...regardless if I'm day trading, swing trading or position trading.

Image Price Action Analysis via 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 Trade Signal Strategies via 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=192&t=1618

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Market Summaries

The below summaries by Bloomberg, CNNMoney, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events via WRB Analysis from one trade to the next trade to give me the market context before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trading (day trading, swing trading, position trading) and reactions to the markets...something I can not get from my broker statements alone.

U.S. Market Wrap

Oct. 23 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks retreated, giving the Dow Jones Industrial Average its biggest decline since June, amid disappointing results at companies from 3M Co. to DuPont Co. and as commodities erased their gain for the year.

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Market Update

4:20 pm : Equities began the session with an opening sell-off as disappointing earnings combined with Moody's downgrade of five Spanish regions fueled the bearish sentiment. Stocks reached session lows during the first hour before attempting to rebound. The tech-heavy Nasdaq showed intraday resilience, but the attempt to reclaim its early losses was cut short when late-day selling sent the index back near the middle of its range. As a result the Nasdaq ended lower by 0.9% while S&P 500 lost 1.4%.

Stocks in the materials space saw the biggest weakness. Among steel producers, AK Steel (AKS 5.19, -0.32) fell 5.8% despite beating on earnings and reporting revenues in-line with Capital IQ consensus. However, based on current conditions, the company expects to incur a net loss during the fourth quarter. This includes an anticipated non-cash tax expense resulting from an expected change in the company's tax valuation allowance. Other steel producers also traded lower. ArcelorMittal (MT 15.64, -0.92) slid 5.6%, while Cliffs Natural Resources (CLF 43.55, -1.44), Nucor (NUE 40.37, -0.75), and United States Steel (X 21.90, -1.01) all lost between 1.8% and 4.4%.

Chemical producer DuPont (DD 45.25, -4.51) plunged 9.1% after missing earnings and revenue expectations. In addition, the company lowered its full-year 2012 earnings guidance, and announced restructuring plans which aim to cut about 1,500 positions globally. The weak results weighed on other chemical producers. Dow Chemical (DOW 28.55, -1.19) settled lower by 4.0%, while Monsanto (MON 86.93, -1.94) and Mosaic (MOS 53.07, -1.16) both lost near 2.2%.

The technology sector outperformed the broader market. The group's biggest component, Apple (AAPL 613.35, -20.67) dipped 3.3% after unveiling a smaller version of the iPad tablet with a $329 price tag. The company also announced a fourth generation iPad and a new desktop computer.

Looking at technology earnings, Western Digital (WDC 34.43, -0.85) slipped 2.4% despite beating on earnings and revenues. The management remained upbeat about future prospects and said, "While the macroeconomic environment is dampening near term demand, we remain confident in the continued long-term growth in the creation, storage and management of digital content." Peer Seagate (STX 27.80, -0.51) shed 1.8% in sympathy.

Texas Instruments (TXN 27.84, +0.05) tacked on 0.2% after reporting third quarter earnings of $0.52 on revenue of $3.39 billion. While the quarterly results beat expectations, it should be noted that the company issued downside fourth quarter earnings and revenue guidance. The management commented on the outlook by saying "TI revenue grew sequentially and operations were well executed even though the economy and semiconductor market remained weak and likely will get weaker in the fourth quarter."

Xerox (XRX 6.67, -0.36) ended lower by 5.1% after announcing mixed earnings. The business equipment provider reported earnings of $0.25, which was in-line with Capital IQ consensus estimates. However, the revenue of $5.42 billion was short of the $5.5 billion forecast by the Capital IQ consensus. The management commented on the future outlook by saying, "We remain cautious, and we are focused on reducing costs to absorb the impact and improve margins while investing in key areas of growth and delivering strong cash flow."

Elsewhere, Yahoo! (YHOO 16.67, +0.90) advanced 5.7% after its third quarter earnings of $0.35 exceeded Capital IQ consensus estimates by $0.09. The revenues, meanwhile, were reported in-line with Capital IQ analyst expectations. Following the earnings release, Susquehanna upgraded the stock to ‘positive' from ‘neutral.' Note that today's buying has lifted the stock to levels not seen since October of last year.

The Dow Jones Transportation Average outperformed the remaining industrials, and added 0.9%. The strength within the bellwether complex was a result of positive reaction to earnings from a handful of names. Ryder System (R 45.82, +2.39) rose by 5.5% after announcing mixed earnings. The truck lessor reported earnings of $1.28 which was $0.10 better than the Capital IQ consensus estimate. However, the company's revenue of $1.57 billion was below the $1.62 billion Capital IQ forecast. Peer CH Robinson (CHRW 60.98, +1.13) added 1.9%.

United Parcel Service (UPS 73.73, +2.17) advanced 3.0% after reporting mixed earnings. The economic bellwether announced third quarter earnings of $1.06, which was in-line with the Capital IQ consensus. Meanwhile, the company's revenue of $13.07 billion fell short of the $13.31 billion expected by the Capital IQ consensus. In addition, the company issued in-line guidance. Peers FedEx (FDX 91.79, +0.31) and Expeditors International (EXPD 36.28, +0.95) registered gains of 0.3% and 2.7%, respectively.

Luxury retailer Coach (COH 58.15, +3.98) surged 7.4% after beating on earnings, and reporting in-line revenues. The company also announced the repurchase of up to $1.5 billion of its outstanding common stock by June 30, 2015. When commenting on the future outlook, the management said, "We are well positioned for the holiday season and remain confident in our ability to deliver double-digit growth during our planning horizon."

Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET. In addition, September new home sales and the August FHFA Housing Price Index will be released at 10:00 ET. Lastly, the Federal Reserve will release a policy statement at 14:15 ET.

The U.S. Treasury will auction off $35 billion in 5-yr notes.DJ30 -243.31 NASDAQ -26.50 SP500 -20.71 NASDAQ Adv/Vol/Dec 884/1.76 bln/1593 NYSE Adv/Vol/Dec 806/670.9 mln/2236

3:30 pm : Crude oil and precious metals fell deeper into negative territory as a stronger dollar and weakness in the broader market put pressure on prices. The energy component slid off its session high of $87.13 per barrel and brushed a session low of $85.69 per barrel. It eventually settled at $86.67 per barrel for a loss of 2.3%.

Both gold and silver traded in the red in a consolidative pattern. Gold dipped as low as $1705.10 per ounce and eventually settled with a 1.0% loss at $1709.40 per ounce. Silver brushed a session low of $31.74 per ounce and closed at $31.78 per ounce, or 1.5% lower.

On the other hand, natural gas came off its session low of $3.45 per MMBtu and trended higher for most of its floor session. It peaked at $3.56 per MMBTu and settled at $3.53 per MMBtu for a 2.3% gain.DJ30 -226.60 NASDAQ -22.07 SP500 -18.78 NASDAQ Adv/Vol/Dec 886/1492.2 mln/1574 NYSE Adv/Vol/Dec 755/462 mln/2250

3:00 pm : The S&P 500 is slowly reclaiming its losses as the final hour of trade begins. The index is currently down 1.1%.

Companies will continue reporting third quarter earnings after today's close. The Capital IQ consensus expects Netflix (NFLX 68.51, +0.64) to report earnings of $0.04 on revenue of $905.02 million.

Facebook (FB 19.46, +0.14) is also scheduled to report. The Capital IQ consensus estimates are calling for earnings of $0.11 on $1.22 billion in revenue.

Other notable companies which will report after today's close include: Amgen (AMGN 87.80, 0.00), CH Robinson (CHRW 61.13, +1.28), Juniper Networks (JNPR 17.55, -0.15), and Panera Bread (PNRA 159.75, -1.96).

Ahead of tomorrow's open, AT&T (T 35.21, -0.04), Boeing (BA 72.85, -0.85), Delta Air Lines (DAL 10.11, -0.03), and US Airways (LCC 11.98, +0.06) are all scheduled to report.DJ30 -199.62 NASDAQ -15.69 SP500 -15.89 NASDAQ Adv/Vol/Dec 854/1.34 bln/1589 NYSE Adv/Vol/Dec 763/412.1 mln/2240

2:30 pm : Equities continue to maintain their afternoon levels. The S&P 500 is lower by 1.4%.

Shares of Apple (AAPL 616.56, -16.53) have fallen from session highs to fresh lows after the new iPad mini was unveiled with a $329 price tag. The stock is currently down 2.4%.

Elsewhere, the volatility index, or VIX, is higher by 11.8%. The fear gauge is currently at 18.60, which is a level last seen in early August. After being trapped between 14.00 and 18.00 for the past three months, the VIX has broken through the 18.00 level.DJ30 -224.21 NASDAQ -22.31 SP500 -18.97 NASDAQ Adv/Vol/Dec 773/1.24 bln/1681 NYSE Adv/Vol/Dec 681/381.8 mln/2317

2:00 pm : The major averages are holding their afternoon levels and the S&P 500 is off by 1.4%.

The financial sector is trailing the broader market and the SPDR Financial Select Sector ETF (XLF 15.84, -0.27) is off by 1.7%. Among the majors, Goldman Sachs (GS 118.86, -3.91) and Bank of America (BAC 9.30, -0.25) are the worst performers. The two stocks are down 3.0% and 2.4%, respectively.

Meanwhile, European financials are registering wider losses than their U.S. counterparts. Deutsche Bank (DB 43.70, -1.56) and Credit Suisse (CS 22.89, -0.68) are seeing respective losses of 3.5% and 2.8%.DJ30 -214.51 NASDAQ -17.71 SP500 -18.05 NASDAQ Adv/Vol/Dec 738/1.14 bln/1702 NYSE Adv/Vol/Dec 626/351.2 mln/2356

1:30 pm : The S&P 500 continues to trade lower by 1.3%, while Nasdaq is at its session high.

The Dow Jones Transportation Average is higher by 0.3% as it outperforms the remaining industrials. The strength within the bellwether complex is a result of positive reaction to earnings from a handful of names.

Ryder System (R 45.88, +2.45) is rising by 5.6% after announcing mixed earnings. The truck lessor reported earnings of $1.28 which was $0.10 better than the Capital IQ consensus estimate. However, the company's revenue of $1.57 billion was below the $1.62 billion Capital IQ forecast. Peer CH Robinson (CHRW 61.16, +1.31) is adding 2.2%.

United Parcel Service (UPS 73.46, +1.90) is advancing 2.6% after reporting mixed earnings. The economic bellwether announced third quarter earnings of $1.06, which was in-line with the Capital IQ consensus. Meanwhile, the company's revenue of $13.07 billion fell short of the $13.31 billion expected by the Capital IQ consensus. In addition, the company issued in-line guidance. Peers FedEx (FDX 91.58, +0.10) and Expeditors International (EXPD 35.81, +0.48) are higher by 0.1% and 1.4%, respectively.

Airlines are trading lower, but they are showing relative strength when compared to the broader market. Alaska Air (ALK 37.86, -0.22), Southwest Airlines (LUV 8.79, -0.04), and United Continental (UAL 20.27, -0.21) are all down between 0.5% and 1.0%.DJ30 -221.84 NASDAQ -16.70 SP500 -18.65 NASDAQ Adv/Vol/Dec 743/1.06 bln/1678 NYSE Adv/Vol/Dec 601/324.3 mln/2376

1:00 pm : Equities opened the session sharply lower as disappointing third quarter earnings continued to pour in. In addition, questions about Spain's solvency returned to the forefront after Moody's downgraded five Spanish regions, including the economically significant Catalonia. After the gap-down open, the S&P 500 fell near the 1,410 level, before staging a slight rebound. At midday, the index trades lower by 1.4%.

Stocks in the materials space are seeing the biggest weakness. Among steel producers, AK Steel (AKS 5.10, -0.40) is shedding 7.4% despite beating on earnings and reporting revenues in-line with Capital IQ consensus. However, based on current conditions, the company expects to incur a net loss during the fourth quarter. This includes an anticipated non-cash tax expense resulting from an expected change in the company's tax valuation allowance. Other steel producers are also trading lower. ArcelorMittal (MT 15.60, -0.96) is sliding 5.8%, while Cliffs Natural Resources (CLF 43.52, -1.47), Nucor (NUE 40.17, -0.95), and United States Steel (X 21.89, -1.01) are all down between 2.3% and 4.4%.

Chemical producer E. I. du Pont (DD 45.42, -4.34) is dipping 8.7% after missing earnings and revenue expectations. In addition, the company lowered its full-year 2012 earnings guidance and announced restructuring plans which aim to cut about 1,500 positions globally. The weak results are weighing on other chemical producers. Dow Chemical (DOW 28.55, -1.19) is lower by 4.0%, while Monsanto (MON 86.85, -2.02) and Mosaic (MOS 52.71, -1.52) are losing 2.3% and 2.8%, respectively.

The technology sector is trading ahead of the broader market. The group's biggest component, Apple (AAPL 628.51, -5.52) is sliding 0.9% as the special event in San Jose gets underway. At the event, Apple is expected to unveil a smaller version of its iPad tablet.

Looking at technology earnings, Western Digital (WDC 34.86, -0.42) is slipping 1.1% despite beating on earnings and revenues. The management remained upbeat about future prospects and said, "While the macroeconomic environment is dampening near term demand, we remain confident in the continued long-term growth in the creation, storage and management of digital content." Peer Seagate (STX 27.90, -0.41) is down 1.5% in sympathy.

Texas Instruments (TXN 27.78, -0.01) is showing little change after reporting third quarter earnings of $0.52 on revenue of $3.39 billion. While the quarterly results beat expectations, it should be noted that the company issued downside fourth quarter earnings and revenue guidance. The management commented on the outlook by saying "TI revenue grew sequentially and operations were well executed even though the economy and semiconductor market remained weak and likely will get weaker in the fourth quarter."

Xerox (XRX 6.59, -0.44) is down 6.2% after announcing mixed earnings. The business equipment provider reported earnings of $0.25, which was in-line with Capital IQ consensus estimates. However, the revenue of $5.42 billion was short of the $5.5 billion forecast by the Capital IQ consensus. The management commented on the future outlook by saying, "we remain cautious, and we are focused on reducing costs to absorb the impact and improve margins while investing in key areas of growth and delivering strong cash flow."

Elsewhere, Yahoo! (YHOO 16.68, +0.91) is higher by 5.8% after its third quarter earnings of $0.35 exceeded Capital IQ consensus estimates by $0.09. The revenues, meanwhile, were reported in-line with Capital IQ analyst expectations. Following the earnings release, Susquehanna upgraded the stock to ‘positive' from ‘neutral.' Note that today's buying has lifted the stock to levels not seen since October of last year.

Luxury retailer Coach (COH 58.72, +4.55) is surging 8.4% after beating on earnings, and reporting in-line revenues. The company also announced the repurchase of up to $1.5 billion of its outstanding common stock by June 30, 2015. When commenting on the future outlook, the management said, "we are well positioned for the holiday season and remain confident in our ability to deliver double-digit growth during our planning horizon."DJ30 -222.81 NASDAQ -17.23 SP500 -18.70 NASDAQ Adv/Vol/Dec 695/967.5 mln/1731 NYSE Adv/Vol/Dec 546/298.9 mln/2425

12:30 pm : The S&P 500 and Dow continue to trade near their respective lows. Meanwhile, the Nasdaq is rising off its session lows.

Facebook (FB 19.61, +0.30) is seeing strength in a down market. The shares of the social media site are trading higher by 1.6% ahead of its scheduled earnings release after today's close. Facebook peer, Zynga (ZNGA 2.23, -0.09) is off by 3.9% after reports indicated the company is developing its own ad platform. Note that Zynga will report its third quarter earnings after tomorrow's market close.DJ30 -230.10 NASDAQ -26.30 SP500 -20.67 NASDAQ Adv/Vol/Dec 555/871.2 mln/1877 NYSE Adv/Vol/Dec 440/272.1 mln/2522

12:00 pm : The major averages are holding their recent levels. The S&P 500 continues to trade lower by 1.6% as it hovers above the 1,410 level.

Luxury retailer Coach (COH 58.34, +4.17) is rising by 7.7% after beating on earnings, and reporting in-line revenues. The company also announced the repurchase of up to $1.5 billion of its outstanding common stock by June 30, 2015. When commenting on the future outlook, the management said, "we are well positioned for the holiday season and remain confident in our ability to deliver double-digit growth during our planning horizon." Other luxury retailers are trading lower. Fossil (FOSL 87.83, -1.55) is down 1.7%, while Tiffany & Co. (TIF 62.59, -1.42) and Macy's (M 39.17, -0.82) are seeing respective losses of 2.2% and 2.1%.DJ30 -242.41 NASDAQ -30.82 SP500 -22.51 NASDAQ Adv/Vol/Dec 474/778.8 mln/1937 NYSE Adv/Vol/Dec 398/244.6 mln/2557

11:30 am : The S&P 500 is showing little change since falling to the 1,410 level. Currently, the index trades lower by 1.5%.

Ryder System (R 45.99, +2.56) is rising by 5.9% after announcing mixed earnings. The truck lessor reported earnings of $1.28 which was $0.10 better than the Capital IQ consensus estimate. However, the company's revenue of $1.57 billion was below the $1.62 billion Capital IQ forecast. Ryder peers are mixed. CH Robinson (CHRW 60.41, +0.56) is adding 0.9%, while JB Hunt (JBHT 57.16, -0.18) is off by 0.3%.DJ30 -239.10 NASDAQ -30.78 SP500 -21.88 NASDAQ Adv/Vol/Dec 455/674.3 mln/1931 NYSE Adv/Vol/Dec 378/215.4 mln/2543

11:00 am : The major averages are holding their recent levels and the S&P 500 is down 1.6%.

The technology sector is trading ahead of the broader market. The group's biggest component, Apple (AAPL 626.59, -7.44) is sliding 1.2% ahead of today's 13:00 ET event at which the company is expected to unveil the newest iPad tablet.

Looking at technology earnings, Western Digital (WDC 33.83, -1.45) is sliding 4.1% despite beating on earnings and revenues. The management remained upbeat about future prospects and said, "While the macroeconomic environment is dampening near term demand, we remain confident in the continued long-term growth in the creation, storage and management of digital content." Peer Seagate (STX 27.04, -1.27) is down 4.5% in sympathy.

Texas Instruments (TXN 27.36, -0.43) is off by 1.6% after reporting third quarter earnings of $0.52 on revenue of $3.39 billion. While the quarterly results beat expectations, it should be noted that the company issued downside fourth quarter earnings and revenue guidance. The management commented on the outlook by saying "TI revenue grew sequentially and operations were well executed even though the economy and semiconductor market remained weak and likely will get weaker in the fourth quarter."

Elsewhere, Yahoo! (YHOO 16.74, +0.97) is higher by 6.2% after its third quarter earnings of $0.35 exceeded Capital IQ consensus estimates by $0.09. The revenues, meanwhile, were reported in-line with Capital IQ analyst expectations. Following the earnings release, Susquehanna upgraded the stock to ‘positive' from ‘neutral.' Note that today's buying has lifted the stock to levels not seen since October of last year.DJ30 -236.31 NASDAQ -35.48 SP500 -23.33 NASDAQ Adv/Vol/Dec 403/557.1 mln/1962 NYSE Adv/Vol/Dec 373/182.7 mln/2525

10:35 am : Commodities are mostly lower this morning as the dollar index is near its session high. Crude oil prices are getting hammered again.

Gold, silver, copper and crude oil are all trading in the red, while natural gas is trading higher. Nov crude oil gained some steam the day after TransCanada shut its Keystone pipeline down, late last week, but it has since declined sharply. Since Friday's HoD, oil has pulled back about $7/barrel. In current trade, Nov crude oil is sharply lower, showing losses of 2.9% with oil trading at $86.07/barrel. Nov natural gas is +1.0% at $3.49/MMBtu.

In precious metals, gold and silver have been in negative territory all session. Dec gold just hit a new session low of $1705.70 and is now -1.2% at $1705.60/oz. Dec silver is -1.6% at $31.75/oz. Dec copper is currently -1.9% at $3.55/lb.DJ30 -248.43 NASDAQ -40.44 SP500 -24.81 NASDAQ Adv/Vol/Dec 390/456.1 mln/1943 NYSE Adv/Vol/Dec 354/160 mln/2517

10:00 am : The major averages are trading near their respective session lows. The S&P 500 is off by 1.3%.

Stocks in the materials space are posting the biggest losses in the early going.

Among steel producers, AK Steel (AKS 5.25, -0.26) is shedding 4.7% despite beating on earnings and reporting revenues in-line with Capital IQ consensus. However, based on current conditions, the company expects to incur a net loss during the fourth quarter. This includes an anticipated non-cash tax expense resulting from an expected change in the company's tax valuation allowance. Other steel producers are also trading lower. ArcelorMittal (MT 15.70, -0.87) is sliding 5.3%, while Cliffs Natural Resources (CLF 43.55, -1.44), Nucor (NUE 40.28, -0.84), and United States Steel (X 22.31, -0.60) are all down between 2.0% and 3.3%.

Chemical producer E. I. du Pont (DD 46.02, -3.74) is dipping 7.6% after missing earnings and revenue expectations. In addition, the company lowered its full-year 2012 earnings guidance and announced restructuring plans which aim to cut about 1,500 positions globally. The weak results are weighing on other chemical producers. Dow Chemical (DOW 28.97, -0.77) is lower by 2.6%, while Monsanto (MON 87.68, -1.19) and Mosaic (MOS 53.21, -1.02) are losing 1.4% and 1.9%, respectively.DJ30 -175.41 NASDAQ -29.96 SP500 -18.27 NASDAQ Adv/Vol/Dec 447/269.8 mln/1835 NYSE Adv/Vol/Dec 381/100.9 mln/2389

09:45 am : Following a downbeat open, stocks are extending their losses. The S&P 500 is down 1.4%.

Looking at the early sector alignment, stocks in the materials space are the biggest laggards as the group trades lower by 2.7%. Meanwhile, utility stocks are posting the narrowest loss, down 0.8%.

Shifting to earnings reaction, United Parcel Service (UPS 74.08, +2.53) is adding 3.6% after reporting mixed earnings. The economic bellwether announced third quarter earnings of $1.06, which was in-line with the Capital IQ consensus. Meanwhile, the company's revenue of $13.07 billion fell short of the $13.31 billion expected by the Capital IQ consensus. In addition, the company issued in-line guidance.

Western Digital (WDC 33.32, -1.96) is sliding 5.6% despite beating on earnings and revenues. The management remained upbeat about future prospects and said, "While the macroeconomic environment is dampening near term demand, we remain confident in the continued long-term growth in the creation, storage and management of digital content." Peer Seagate (STX 27.39, -0.92) is sliding 3.4%.

Texas Instruments (TXN 27.34, -0.45) is off by 1.7% after reporting third quarter earnings of $0.52 on revenue of $3.39 billion. While the quarterly results beat expectations, it should be noted that the company issued downside fourth quarter earnings and revenue guidance. The management commented on the outlook by saying "TI revenue grew sequentially and operations were well executed even though the economy and semiconductor market remained weak and likely will get weaker in the fourth quarter."DJ30 -186.61 NASDAQ -35.31 SP500 -19.83 NASDAQ Adv/Vol/Dec 350/175.2 mln/1895 NYSE Adv/Vol/Dec 335/75.7 mln/2377

09:18 am : [BRIEFING.COM] S&P futures vs fair value: -15.70. Nasdaq futures vs fair value: -26.50. Heading into the open, equity futures are down over 1.0%.

With futures under pressure, a significantly lower open is expected. Pre-market movers are suggesting stocks in high-beta sectors will be selling off in the early going. Financials are seeing weakness as Morgan Stanley (MS 17.00, -0.45) trades lower by 2.6% and Citigroup (C 37.05, -0.67) is off by 1.8%.

Stocks in the materials space are also down in pre-market. Cliffs Natural Resources (CLF 43.50, -1.49) and United States Steel (X 22.22, -0.69) are down 3.3% and 3.0%, respectively.

09:02 am : [BRIEFING.COM] S&P futures vs fair value: -15.30. Nasdaq futures vs fair value: -28.00. Equity futures are holding their recent levels, and the S&P 500 futures are off by 1.2%.

Looking further at this morning's earnings, Xerox (XRX 6.75, -0.28) is down 4.0% after announcing mixed earnings. The business equipment provider reported earnings of $0.25, which was in-line with Capital IQ consensus estimates. However, the revenue of $5.42 billion was short of the $5.5 billion forecast by the Capital IQ consensus. The management commented on the future outlook by saying, "we remain cautious, and we are focused on reducing costs to absorb the impact and improve margins while investing in key areas of growth and delivering strong cash flow."

Lexmark (LXK 22.05, +0.40) is adding 1.9% after beating on the top and the bottom line. In addition, the company issued mixed guidance as it expects fourth quarter earnings to fall below Capital IQ consensus estimates, while its revenues are expected to fall in-line with the Capital IQ consensus.

AK Steel (AKS 5.26, -0.25) is down 4.5% despite beating on earnings and reporting revenues in-line with Capital IQ consensus. However, based on current conditions, the company expects to incur a net loss during the fourth quarter. This includes an anticipated non-cash tax expense resulting from an expected change in the company's tax valuation allowance. Peers Cliffs Natural Resources (CLF 43.46, -1.53) and United States Steel (X 22.15, -0.76) are both down near 3.5% in sympathy.

08:30 am : S&P futures vs fair value: -17.20. Nasdaq futures vs fair value: -28.50. U.S. equity futures continue to trade near their pre-market lows. The S&P 500 futures are down 1.2%.

European markets are broadly lower after Moody's provided the main headline of the day, and announced the downgrade of five Spanish regions. Catalonia, which accounts for a fifth of Spain's economic output, was one of the areas affected by the downgrade. Meanwhile, Bank of Spain officials expect the third quarter GDP to contract by 0.4%, and indicated Prime Minister Mariano Rajoy may need to step up his efforts in order to meet the budget targets. The country also auctioned off short-term paper, but the sale had little effect on the markets. Elsewhere, the French Business Survey was reported at 85. This was below the expected reading of 90, and the lowest level since August 2009. In addition, British BBA Mortgage Approvals were reported at 31.2K, which was ahead of expectations.

In the United Kingdom, the FTSE is lower by 1.1% as miners and luxury retailers weigh on the index. Kazakhmys, Eurasian Natural Resources, and Antofagasta are all down between 2.8% and 4.6%. Meanwhile, Burberry is sliding 3.4%. ARM Holdings is leading the index, up 5.1%. The semiconductor manufacturer is seeing strength after reporting a record order backlog on its mobile microchips.

France's CAC is slipping 1.2% and financials are seeing weakness. AXA and Societe Generale are both lower by 1.2%. Only a handful of stocks listed in the CAC are advancing and Michelin is outperforming the index. Shares of the tire maker are trading higher by 4.1% after S&P Equity Research reiterated a ‘buy' rating on the stock.

In Germany, the DAX is down 1.5%. Chemical maker BASF and financial giant Deutsche Bank are the two main laggards, down 3.1% and 2.8%, respectively. Business software provider SAP is the lone advancer as it trades higher by 0.2%.

The major Asian bourses were mostly lower as traders continued to err on the side of caution. Hong Kong markets were closed today, but that didn't stop the Hong Kong Monetary Authority from intervening in the foreign exchange market to defend its HK$7.75 peg versus the U.S. dollar. Data from the region was light as Australia's CB Leading Index fell 0.8% month-over-month (0.0% previous) and Taiwan's industrial production jumped 3.0% year-over-year (3.5% forecast).

In Japan, the Nikkei closed with fractional gains to extend its winning streak to seven days. Exporters were strong as robotics maker Fanuc added 1.9% and camera maker Nikon jumped 1.6%. Utility names were under pressure after Kansai Electric Power announced it would miss its dividend payment. Kansai tumbled 12.9% on the news to lead the sector lower.

Hong Kong's Hang Seng was closed.

In China, the Shanghai Composite settled lower by 0.9% as financials and steel producers paced the decline. China Minsheng Bank and Angang Steel were among the worst performers in their sectors, trading down 1.2% and 1.4% respectively. China's HSBC Flash Manufacturing PMI is due out tonight.

08:01 am : [BRIEFING.COM] S&P futures vs fair value: -13.90. Nasdaq futures vs fair value: -25.30. U.S. equity futures are lower by 1.0%. The weakness follows disappointing earnings, as well as increased worries about Spain's solvency after Moody's downgraded five Spanish regions, including Catalonia.

Overnight, the global equity markets were mixed. Following yesterday's Wall Street close, Moody's announced a downgrade of five Spanish regions. The northern region of Catalonia, which accounts for a fifth of Spain's economic output, was also affected. In the U.S., the Presidential debate could have contributed to the decline, as the S&P 500 futures began to tick lower following the conclusion of the event.

In Asia, a former People's Bank of China advisor feels current equity valuations are too low. Meanwhile, a state researcher sees fourth quarter growth picking up slightly. Elsewhere, Citi lowered its China 2012 GDP growth forecast to 7.7% from 7.9%. In Japan, rumors of more aggressive stimulus measures were refuted by the country's Finance Minister. Note that after the markets closed, a 5.9 magnitude earthquake hit about 500 miles south of Tokyo. Japan's Nikkei closed unchanged while China's Shanghai Composite slipped 0.9%. Hong Kong's Hang Seng was closed in observance of a Chinese public holiday.

In Europe, the news of the day came from Moody's. The rating agency downgraded five Spanish regions, which put the troubled sovereign back in focus. Meanwhile, Bank of Spain officials expect the third quarter GDP to contract by 0.4%, and indicated Prime Minister Mariano Rajoy may need to step up his efforts in order to meet the budget targets. The country also auctioned off short-term paper, but the sale had little effect on the markets. Elsewhere, the French Business Survey was reported at 85. This was below the expected reading of 90, and the lowest level since August 2009. In addition, British BBA Mortgage Approvals were reported at 31.2K, which was ahead of expectations. European indices have been selling off through the first part of the session. Germany's DAX is down 1.3% while France's CAC and UK's FTSE are both lower by 1.2%.

In U.S. corporate news, Texas Instruments (TXN 27.65, -0.14) is off by 0.5% after reporting third quarter earnings of $0.52 on revenue of $3.39 billion. While the quarterly results beat expectations, it should be noted that the company issued downside fourth quarter earnings and revenue guidance. The management commented on the outlook by saying "TI revenue grew sequentially and operations were well executed even though the economy and semiconductor market remained weak and likely will get weaker in the fourth quarter."

3M (MMM 90.50, -2.03) is lower by 2.2% after reporting mixed quarterly results. The company announced earnings of $1.65, which was in-line with Capital IQ consensus estimates. The revenues, however, came in at $7.5 billion, which fell short of the $7.63 billion forecast by the Capital IQ consensus.

Western Digital (WDC 32.72, -2.56) is sliding 7.3% despite beating on earnings and revenues. The management remained upbeat about future prospects and said, "While the macroeconomic environment is dampening near term demand, we remain confident in the continued long-term growth in the creation, storage and management of digital content." Peer Seagate (STX 26.90, -1.41) is shedding 5.0%.

Coach (COH 58.10, +3.93) is rising by 7.3% after beating on earnings, and reporting in-line revenues. The luxury retailer also announced the repurchase of up to $1.5 billion of its outstanding common stock by June 30, 2015. The management provided optimistic comments about the future by saying, "we are well positioned for the holiday season and remain confident in our ability to deliver double-digit growth during our planning horizon."

United Parcel Service (UPS 72.23, +0.67) is adding 0.9% after reporting mixed earnings. The economic bellwether announced third quarter earnings of $1.06, which was in-line with the Capital IQ consensus. Meanwhile, the company's revenue of $13.07 billion fell short of the $13.31 billion expected by the Capital IQ consensus.

There is no economic data scheduled for to be released today.

06:27 am : [BRIEFING.COM] S&P futures vs fair value: -10.50. Nasdaq futures vs fair value: -20.00.

06:27 am : Nikkei...9014.25...+3.50...0.00. Hang Seng...Holiday.........

06:27 am : FTSE...5840.91...-42.00...-0.70%. DAX...7268.49...-56.60...-0.80%.

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

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Image@ http://twitter.com/wrbtrader and http://stocktwits.com/wrbtrader

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