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 Post subject: February 14th Thursday Trade Results - Profit $870
PostPosted: Thu Feb 14, 2013 11:55 pm 
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Joined: Sat Jan 10, 2009 2:06 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: Emini TF ($TF_F) futures @ $870.00 dollars or +8.70 points, EuroFX 6E futures @ $0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @ $0.00 dollars or +0.00 points. Total Profit @ $870.00 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=114&t=1438

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). I'm primarily a day trader because it suits my personal lifestyle but I do occasionally swing trade and position trade.

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=203&t=1751

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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 in many trading instruments I monitor during the trading day. 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, intermarket analysis (e.g. Forex EurUsd, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index futures) while using 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 trade decisions (day trading, swing trading, position trading)...something I can not get from my broker statements alone.

Europe Slowdown Weighs On Stocks

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

NEW YORK (CNNMoney)
U.S. stocks barely budged Thursday, as gloomy news about Europe's economy dampened the impact of better-than-expected jobless claims and two big M&A deals.

The Dow Jones industrial average slipped 0.1%, while the S&P 500 and Nasdaq added 0.1%. The negligible moves were enough to nudge the S&P 500 up to a fresh five-year high.

On the positive side, the Labor Department reported that the number of Americans filing for first-time unemployment claims fell by 27,000 to 341,000 in the latest week. Economists were expecting 365,000 claims.

Thursday also brought a slew of merger news.

Warren Buffett's Berkshire Hathaway (BRKA, Fortune 500) and 3G Capital agreed to buy Heinz (HNZ, Fortune 500) for $28 billion. Shares of the ketchup-maker spiked 20%. Shares of fellow food company Campbell Soup (CPB, Fortune 500) rose 1.4%.

US Airways (LCC, Fortune 500) and American Airlines parent AMR (AAMRQ, Fortune 500) officially announced an $11 billion deal to create the world's largest airline. Shares of US Airways fell 4.6%, while AMR jumped 63%.

Shares of Constellation Brands (STZ) surged 37% after Anheuser-Busch InBev (BUD) agreed to give up key assets in an effort to address antitrust issues related to is proposed $20 billion takeover of Mexican brewer Grupo Modelo.

Related: M&A making a comeback

But investors were cautious after data showed the eurozone suffered its third consecutive quarter of declining growth at the end of 2012. Performances in all four of the region's biggest economies -- Germany, France, Italy and Spain -- also deteriorated compared with the third quarter of 2012.

Plus, after a strong start to the year, it's not unusual for stocks to take a breather. Even with the recent slips and slides, the Dow is within 1.6% of its all-time high, hit in October 2007, and the S&P 500 is about 4% shy of its record high, also set in October 2007. And all three indexes are up between 5% and 7% for the year.

As long as economic news continues to point to modest growth, stocks should keep advancing and reach new highs as investors continue to make their way back into the stock market, said Peter Cardillo, chief market economist at Rockwell Global Capital.

"There's a lot of money on the sidelines that is seeking a home," said Cardillo. "And the bottom line is that stocks prevail over bonds in an environment where interest rates are so low."

Related: Stocks you love

In earnings news Thursday, General Motors (GM, Fortune 500) released quarterly results that missed expectations, sending shares lower. PepsiCo (PEP, Fortune 500) shares gained after the beverage maker logged better-than-expected earnings.

Cisco (CSCO, Fortune 500) shares declined 0.7% after Cisco CEO John Chambers took a cautious tone with his outlook as the company reported earnings roughly in line with forecasts. Shares of Mondelez (MDLZ) sank 4.3% after the food producer logged earnings that missed expectations after the close on Wednesday.

About 65% of the companies in the S&P 500 that have reported fourth-quarter earnings have topped analysts' expectations, according to S&P Capital IQ. But the bulk of companies that have issued guidance for the first quarter had a negative outlook.

Related: Fear & Greed Index in extreme greed

European markets finished lower, with Germany's DAX sliding more than 1%, after the weaker-than-expected GDP figures.

Asian markets ended higher. Hong Kong's Hang Seng added 0.9% as traders returned from an extended holiday.

The Nikkei added 0.5% despite data showing Japan's economy has contracted in each of the three most recent quarters. The weak performance is likely to increase the clamor for more aggressive fiscal and monetary stimulus measures.

The Shanghai exchange was closed for the Lunar New Year holiday.

The dollar rose against the euro and the British pound, but slipped versus the Japanese yen.

Oil prices edged higher, while gold prices fell.

The price on the 10-year Treasury rose slightly, and the yield held steady around 2%.

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4:20 pm : The major averages ended little changed with the S&P 500 tacking on 0.1%. The benchmark index settled slightly higher after spending the majority of the day within a two point range of yesterday's close.

Equities slipped out of the gate with the downbeat European trade contributing to early weakness. This resulted from disappointing fourth quarter GDP reports from France, Germany, Greece, Italy, and Portugal. All five countries saw their economies contract during the final three months of 2012. As a result, the fourth quarter Eurozone GDP shrank 0.6% quarter-over-quarter.

The weak economic data reported across the continent resulted in euro weakness, which translated into strength for the U.S. dollar. The dollar index added 0.4% and settled near 80.40.

Despite the strength of the greenback, crude oil, which is denominated in dollars, climbed as well. The energy component rose 0.4% and settled just under $97.40. The strength of crude contributed to the energy sector ending as the day's top performer.

Another pocket of strength could be found in consumer staples. The space outperformed for the duration of the session after H.J. Heinz (HNZ 72.50, +12.02) agreed to be acquired by a group including Warren Buffet's Berkshire Hathaway (BRK.B 99.21, +1.24) for $28 billion, or $72.50 per share. The agreed price represents a 20% premium to Heinz's Wednesday close.

Elsewhere among staples, Constellation Brands (STZ 43.75, +11.87) soared 37.2% after the company, along with Anheuser Busch Inbev (BUD 92.76, +4.50), announced a revised agreement for the divesture of the U.S. business of Grupo Modelo. This after the original deal was met with a regulatory challenge.

Though Heinz and Constellation Brands registered outsized gains, the remainder of the sector saw some weakness. Mondelez (MDLZ 26.57, -1.18) slid 4.3% after missing on earnings and revenue. In addition, the company guided full-year earnings below analyst expectations. Meanwhile Whole Foods (WFM 87.50, -9.40) fell 9.7% after its upbeat report was combined with narrowed comparable store sales growth estimate.

While energy and consumer staples outperformed, the telecom sector was the biggest laggard. Century Link (CTL 32.27, -9.42) plunged 22.6% after the company missed on the bottom line and lowered its quarterly dividend to $0.54 from $0.725. Additionally, Century Link received six downgrades following its quarterly report.

Telecoms (-2.0%) underperformed notably while utilities (-0.9%) and materials (-0.4%) also registered losses. On the upside, energy (+0.5%) led the way as financials (+0.3%), health care (+0.2%), and consumer staples (+0.1%) outperformed as well.

Today's floor volume saw the highest total of the week, but with 670 million shares changing hands on the New York Stock Exchange, activity remained below average.

Although overseas economic data was plentiful, that was not the case in the U.S. The latest weekly initial jobless claims count totaled 341,000, which was lower than the 365,000 that had been expected by the Briefing.com consensus. The reading was a positive surprise but it remains unclear if today's figure was an aberration or a break from the 350,000-400,000 range observed for much of last year. Note that next week's report may see some distortions related to snowstorm Nemo.

Also worth noting, afternoon headlines indicated that Senate Democrats have reached a deal to avoid the package of automatic spending cuts known as the 'sequester.' Earlier, House Speaker John Boehner said he will find a way to work on the sequester if the Senate acts.

On Friday, the February Empire Manufacturing Index will be released at 8:30 ET; December net long-term TIC flows will be reported at 9:00 ET; January industrial production and capacity utilization will cross the wires at 9:15 ET. The last economic report of the day will come from the University of Michigan where the preliminary February Michigan Consumer Sentiment Survey will be released at 9:55 ET. In earnings, Campbell Soup (CPB 38.72, +0.54) and Kraft Foods (KRFT 47.16, +0.39) will report their quarterly results.DJ30 -9.52 NASDAQ +1.78 SP500 +1.05 NASDAQ Adv/Vol/Dec 1316/1.86 bln/1135 NYSE Adv/Vol/Dec 1506/671.8 mln/1497

3:30 pm :

Mar crude oil traded higher on Middle East concerns as the IAEA and Iran failed to reach an agreement over the country's nuclear program. The energy component rose to a session high of $97.71per barrel despite an advance by the dollar index. It pulled-back slightly in afternoon pit trade and settled 0.3% higher at $97.30 per barrel.
Mar natural gas fell off its session high of $3.28 per MMBtu following inventory data that showed a draw of 157 bcf when a larger draw of 162 bcf was anticipated. It continued to trend lower and eventually settled with a 4.5% loss at $3.16 per MMBtu.
Apr gold dropped sharply into negative territory on jobless claims data released early this morning. Despite recovering back into the black minutes later, prices sold-off into the red again as a stronger dollar put pressure on the yellow metal. Gold trended lower for the remainder of pit trade and settled with a 0.6% loss at $1635.50 per ounce, just above its session low of $1633.50 per ounce.
Mar silver also slid into the red after trading as high as $31.05 per ounce in morning floor action. It brushed a session low of $30.21per ounce and later settled with a 1.7% loss at $30.36 per ounce.

DJ30 -0.53 NASDAQ +3.33 SP500 +2.19 NASDAQ Adv/Vol/Dec 1333/1562 .1 mln/1086 NYSE Adv/Vol/Dec 1492/444 mln/1488

3:00 pm : Heading into the final hour of trade, the major averages remain near their unchanged levels. Equities opened the session on a down note, but were able to overcome the early weakness during the first 90 minutes of trade.

Several notable companies reported their earnings since yesterday's close with the reports painting a mixed picture. In the tech space, Applied Materials (AMAT 13.80, +0.03) and Cisco (CSCO 20.91, -0.23) beat on the bottom line, but Cisco's guidance for the current quarter fell short of expectations.

The tech sector is seeing little change but microprocessor manufacturers are outperforming. The PHLX Semiconductor Index is higher by 0.7%.DJ30 -4.95 NASDAQ +1.96 SP500 +1.70 NASDAQ Adv/Vol/Dec 1307/1.41 bln/1095 NYSE Adv/Vol/Dec 1491/405.4 mln/1474

2:35 pm : The S&P 500 has climbed to a fresh high, but the index remains less than two points above its unchanged level.

Stocks were steadfast in overcoming their opening weakness, but have traded in much more tentative fashion since climbing back into the black. The telecom space was the biggest laggard at the open, and it remains as the weakest sector. Century Link (CTL 32.61, -9.08) weighs on the space, trading lower by 21.8%. The underperformance followed disappointing earnings which resulted in six broker downgrades. Additionally, missing on earnings and cutting its dividend. In addition, the company has cut its dividend.

Also worth noting, recent headlines have indicated that Senate Democrats have reached a deal to avoid the package of automatic spending cuts known as the "sequester." Earlier, House Speaker John Boehner said he will find a way to work on the sequester if the Senate acts.DJ30 -8.83 NASDAQ +0.83 SP500 +1.18 NASDAQ Adv/Vol/Dec 1312/1.31 bln/1087 NYSE Adv/Vol/Dec 1419/377.2 mln/1543

2:00 pm : The S&P 500 has spent the past three hours in a two point range centered around its unchanged line.

Equities saw weakness at the open following several contractionary GDP reports from Eurozone economies as well as Japan. However, the weekly initial claims report, which surprised to the upside, helped alleviate some of the fears exhibited in pre-market trade. It remains to be seen whether today's report was an aberration or a clean break from the 350,000-400,000 range to which claims have been confined for the past year.

Energy stocks are among the top performers as crude oil trades higher as well. This comes despite the advance in the dollar index, which trades higher by 0.5%.

In addition, financials have shown intraday strength. Goldman Sachs (GS 155.99, +1.47) is the top performer among the majors, up 1.0%.DJ30 -14.45 NASDAQ +1.73 SP500 +0.52 NASDAQ Adv/Vol/Dec 1289/1.21 bln/1083 NYSE Adv/Vol/Dec 1391/345.5 mln/1552

1:30 pm : The key averages continue to oscillate around their respective unchanged levels. Though equities proved resilient in their ability to overcome the opening weakness, they have been unable to maintain any meaningful gains.

Elsewhere, the U.S. treasury has recently auctioned off $16 billion in 30-yr bonds. The auction was strong with a bid-to-cover ratio ahead of its 12-auction average. Following the auction, the benchmark 10-yr yield slid to a session low of 2.00% where it currently remains.DJ30 -18.14 NASDAQ +3.02 SP500 +0.38 NASDAQ Adv/Vol/Dec 1258/1.12 bln/1108 NYSE Adv/Vol/Dec 1361/322.1 mln/1554

1:05 pm : At midday, the S&P 500 is seeing little change after overcoming early weakness. The benchmark index began the session on a lower note after several Eurozone economies reported disappointing fourth quarter GDP readings.

France, Germany, Greece, and Italy all saw their economies contract during the final three months of 2012. In addition, Japan also reported a contractionary reading making it three negative quarters in a row.

The disappointing data released across Europe caused weakness in the euro with the common currency seeing notable weakness against the dollar. In turn, this is contributing to the strength of the dollar index which trades higher by 0.5% at 80.50.

Interestingly, crude oil, which is denominated in dollars, is rising as well. The energy component trades at $97.40 per barrel after notching its session high at $97.69. The rise in the price of crude is contributing to the outperformance of energy stocks. The energy sector is the top performer and the SPDR Energy Select Sector ETF (XLE 79.36, +0.68) trades higher by 0.9%.

In addition to energy stocks, consumer staples have outperformed for the duration of the session. Sector component H.J. Heinz (HNZ 72.42, +11.94) is soaring 19.7% after Warren Buffet's Berkshire Hathaway (BRK.B 98.94, +0.97) agreed to acquire the food company for $28 billion, or $72.50 per share, representing a 20% premium.

Remaining in the sector, Constellation Brands (STZ 43.58, +11.70) is jumping 36.7% after the company, along with Anheuser Busch Inbev (BUD 92.62, +4.36), announced a revised agreement for the divesture of the U.S. business of Grupo Modelo.

Some of today's biggest decliners lie in the telecom space, which trades lower by 2.3%. Century Link (CTL 32.45, -9.25) is contributing to the notable weakness after missing on earnings and cutting its dividend. In addition, the stock received six downgrades after reporting its quarterly results.

Although economic data overseas was plentiful, that was not the case here. The latest weekly initial jobless claims count totaled 341,000, which was lower than the 365,000 that had been expected by the Briefing.com consensus. The reading was a positive surprise but it remains unclear if today's figure was an aberration or a break from the 350,000-400,000 range observed for much of last year. Note that next week's report may see some distortions related to snowstorm Nemo.DJ30 -9.41 NASDAQ +3.74 SP500 +0.98 NASDAQ Adv/Vol/Dec 1265/1.04 bln/1084 NYSE Adv/Vol/Dec 1388/298.8 mln/1509

12:30 pm : The major averages continue to trade near their respective unchanged lines. Although equities climbed steadily off their opening lows, the rally was halted when the major averages reached yesterday's closing levels.

The energy sector is the day's top performer. This comes as crude oil trades higher by 0.4% despite relative strength in the dollar index.

The greenback is registering the bulk of its gains against the euro after several Eurozone economies reported contractionary GDP readings for the fourth quarter. France, Germany, Greece, and Italy all saw negative growth in the final three months of 2012. In Asia, Japan reported its third negative quarter in a row.DJ30 -19.62 NASDAQ -0.37 SP500 -0.44 NASDAQ Adv/Vol/Dec 1196/941.3 mln/1133 NYSE Adv/Vol/Dec 1348/269.5 mln/1525

12:05 pm : The S&P 500 continues to trade just below its flat line after rebounding off early lows. Though the benchmark index reclaimed its opening losses, it has been unable to stage a meaningful move higher.

The cautious open followed disappointing GDP reports from several world economies. France, Germany, Greece, Italy, and Japan all saw their economies contract during the fourth quarter of 2012.

In the U.S. the lone economic data point came in the form of weekly initial claims which surprised to the upside. Today's reading of 341,000 was well below the 365,000 expected by the Briefing.com consensus.

As the major averages continue to hover near their respective unchanged levels, telecoms remain as the weakest sector, down 2.2%.

On the upside, energy stocks have overtaken consumer staples for the lead. The energy sector trades higher as crude oil adds 0.6%. The energy component is now at $97.57 despite a stronger dollar. The dollar index is adding 0.5% to 80.50.DJ30 -17.72 NASDAQ -2.42 SP500 -0.90 NASDAQ Adv/Vol/Dec 1171/860.9 mln/1124 NYSE Adv/Vol/Dec 1300/245.7 mln/1541

11:30 am : The S&P 500 has held near its unchanged line since climbing off its opening lows. Although stocks began the session on a lower note, the early trade showed the market's resilience. Investors looked past the disappointing fourth quarter GDP growth-or lack thereof-from France, Germany, Greece, Italy, and Japan, and instead opted to use the lower open as an opportunity to buy the weakness.

The telecom space remains as the weakest sector, down 2.0%. Shares of Century Link (CTL 33.51, -8.17) are lower by 19.4% after the sector component cut its dividend to $0.54 from $0.725.

While telecoms have lagged since the open, staple stocks are displaying relative strength. This comes after Berkshire Hathaway (BRK.B 98.86, +0.89) agreed to acquire H.J. Heinz (HNZ 72.53, +12.05) for $28 billion, or $72.50 per share.DJ30 -18.66 NASDAQ -2.73 SP500 -0.78 NASDAQ Adv/Vol/Dec 1124/770.7 mln/1135 NYSE Adv/Vol/Dec 1296/221.5 mln/1538

11:00 am : Equities have recovered the vast majority of their early losses and the S&P 500 is now registering fractional gains. Today's lower open resulted from disappointing economic data released around the globe. Japan kicked off the barrage of weak data by reporting its third consecutive quarterly GDP contraction. Several European countries contributed to the bearish sentiment as France, Germany, Greece, and Italy all reported disappointing GDP readings.

The telecom sector remains as the weakest performer. Century Link (CTL 33.54, -8.15) plunging 19.6% after the company lowered its quarterly dividend to $0.54 from $0.725.

Meanwhile, consumer staples are outperforming after Berkshire Hathaway (BRK.B 99.13, +1.16) announced the agreement to acquire H.J. Heinz (HNZ 72.50, +12.02) for $72.50 per share. Another sector component Constellation Brands (STZ 43.24, +11.36) is outperforming following the announcement of a revised agreement to divest the U.S. business of Grupo Modelo.DJ30 +2.00 NASDAQ -2.02 SP500 +0.45 NASDAQ Adv/Vol/Dec 1144/660.6 mln/1064 NYSE Adv/Vol/Dec 1312/190.2 mln/1499

10:35 am : The dollar index is trading higher, but this hasn't really weighed on commodities this morning.

Mar crude oil futures attracted buyers just after 7am EST and began to rally. Crude went on to rally earlier almost $1/barrel, rising as high as $97.69/barrel. In current action, crude oil is +0.4% at $97.40/barrel.

Natural gas futures was in negative territory all morning and were -0.8% at $3.28/MMBtu just ahead of inventory data. Following the data, Mar nat gas dropped notably to a new LoD of $3.18/MMBtu and is now down 3.4% at $3.19/MMBtu.

Precious metals have been whippy this morning, dropping sharply earlier this morning to new session lows only to recovred shortly after. However, in the most recent action, both gold and silver are selling off again. Apr gold is now -0.1% at $1643.20/oz and Mar silver is -0.4% at $30.74/oz.DJ30 -8.73 NASDAQ -7.40 SP500 -1.14 NASDAQ Adv/Vol/Dec 991/528.5 mln/1154 NYSE Adv/Vol/Dec 1183/157 mln/1602

10:05 am : Equities have climbed off their lows, but they remain in the red. The S&P 500 is off by 0.1% as seven of 10 sectors continue to register losses. Telecoms are the biggest laggard with Century Link (CTL 33.26, -8.44) plunging 20.1% after the company lowered its quarterly dividend to $0.54 from $0.725.

On the upside, consumer staples are outperforming. H.J. Heinz (HNZ 72.52, +12.05) is soaring 19.9% after Warren Buffet's Berkshire Hathaway (BRK.B 98.65, +0.68) and 3G Capital for $72.50 per share.

Constellation Brands (STZ 43.22, +11.34) is also contributing to the relative strength of the sector. The distiller is jumping 35.7% after announcing, along with Anheuser Bush Inbev (BUD 93.81, +5.55), a revised agreement for the divesture of the U.S. business of Grupo Modelo.DJ30 -8.15 NASDAQ -8.15 SP500 -1.87 NASDAQ Adv/Vol/Dec 917/351.6 mln/1115 NYSE Adv/Vol/Dec 1134/108.5 mln/1571

09:45 am : The major averages are registering modest losses following a lower open. The S&P 500 is off by 0.4%. Equities began the session on a negative note as disappointing GDP readings from France, Germany, Greece, and Italy weigh on sentiment.

In the U.S. weekly initial claims were reported at 341,000. This report was better than the Briefing.com consensus which called for the number to come in at 365,000.

As equities trade broadly lower, the consumer staples sector is outperforming. Sector component H.J. Heinz (HNZ 72.50, +12.02) is surging 19.9% after the company confirmed an agreement to be acquired by Berkshire Hathaway (BRK.B 97.20, +0.23) and 3G Capital for $72.50 per share. The total transaction is valued at $28 billion and the purchase price represents a 20% premium to Heinz's Wednesday closing price.

Among beverage producers and distillers, Constellation Brands (STZ 40.38, +10.50) is jumping 33.3% after the company, along with Anheuser Busch Inbev (BUD 93.45, +5.19), announced a revised agreement for the divesture of the U.S. business of Grupo Modelo.DJ30 -35.00 NASDAQ -11.12 SP500 -4.05 NASDAQ Adv/Vol/Dec 768/234.7 mln/1144 NYSE Adv/Vol/Dec 922/80.2 mln/1723

09:20 am : S&P futures vs fair value: -4.30. Nasdaq futures vs fair value: -12.00. Heading into the open, equity futures are pointing to a lower start to the session. The S&P 500 futures are lower by 0.3% as downbeat European trade weighs. The cautious sentiment follows the release of a series of disappointing fourth quarter GDP readings across the region. France, Germany, and Italy all missed expectations which resulted in a Eurozone fourth quarter contraction of 0.6%.

Domestically, weekly initial claims were reported at 341,000. This report was better than the Briefing.com consensus which called for the number to come in at 365,000.

M&A activity is making some headlines today as H.J. Heinz (HNZ 72.40, +11.92) surges 19.7% after the company confirmed an agreement to be acquired by Berkshire Hathaway (BRK.B 97.71, -0.26) and 3G Capital for $72.50 per share. The total transaction is valued at $28 billion and the purchase price represents a 20% premium to Heinz's Wednesday closing price.

Elsewhere, U.S. Airways (LCC 15.00, +0.34) is adding 2.3% after the company's merger with American Airlines (AAMRQ 1.30, 0.00) was confirmed.

09:00 am : S&P futures vs fair value: -4.30. Nasdaq futures vs fair value: -10.80.

U.S. equity futures continue to trade modestly lower with the S&P 500 futures off by 0.3%.

European markets are broadly lower following the release of disappointing GDP reports across the continent. Looking at individual reports:

Germany's preliminary fourth quarter GDP reading came in at -0.6%, worse than the -0.5% expected by the market. Meanwhile, the full-year 2012 reading pointed to growth of 0.7%.
In France, preliminary fourth quarter GDP was reported at -0.3%, worse than the downtick of 0.2% expected by the general consensus. Additionally, the country's nonfarm payrolls declined 0.2% quarter-over-quarter, in-line with expectations.
Italy's fourth quarter GDP contracted 0.9% while the market expected a decline of 0.6%.
Greek GDP dropped 6.0% during the fourth quarter. Meanwhile, unemployment climbed to 27%.
The weak regional GDP readings resulted in a fourth quarter Eurozone GDP contraction of 0.6%. This was worse than the decline of 0.4% expected by the general consensus.

Also of note, Spanish industrial new orders dropped 3.1% year-over-year while a decline of 1.0% was expected.

In news, French Prime Minister Jean-Marc Ayrault said the country will miss the 2013 deficit goals due to disappointing growth. Elsewhere, German Economy Minister Philipp Roesler said he believes weakness in the German economy is only temporary.

The United Kingdom's FTSE is lower by 0.5%. Oil services company AMEC is down 5.8% after saying it expects little change to its 2013 orders.
In France, the CAC is down 0.5% as financials underperform. Credit Agricole and Societe Generale are down 2.9% and 3.6% respectively. On the upside, carmaker Renault is soaring 7.0% after the company reported an improvement in its cash position as compared to last year.
Germany's DAX is shedding 1.0% with 29 of 30 stocks trading in the red. Infineon Technologies is down 2.1% after HSBC downgraded the stock to 'Sell.'

The major Asian bourses ended mostly higher as Hong Kong (+0.9%) outperformed on its first trading day in the Year of the Snake. The Bank of Japan held its policy unchanged as it searches for new leadership. Data out overnight showed Japanese GDP shrank 0.1% for the quarter, meaning the country is now in recession with its second straight quarterly contraction. In other central bank news, Bank of Korea held its key rate unchanged at 2.75%, as expected. Elsewhere, India's Wholesale Price Index eased to 6.62% year-over-year (7.00% expected, 7.18% previous) and Australia's MI Inflation Expectations ticked up to 2.2% (2.0% previous).

In Japan, the Nikkei added 0.5% as solid earnings reports provided support. Electronics component maker Taiyo Yuden surged 16% after upping its full-year net profit forecast. Elsewhere, chip names Advantest Corp. and Tokyo Electron gained 4.8% and 3.7% respectively after Applied Materials' earnings report.
Hong Kong's Hang Seng gained 0.9% as financials and property developers led. Industrial & Commercial Bank of China jumped 2.5% and Sun Hung Kai gained 1.3% to finish among the top performers in their respective sectors.
In China, the Shanghai Composite was closed for the Lunar New Year.

08:32 am : [BRIEFING.COM] S&P futures vs fair value: -2.50. Nasdaq futures vs fair value: -8.00. U.S. equity futures are off their lows, but they remain in the red. The S&P 500 futures are off by 0.2%.

The latest weekly initial jobless claims count totaled 341,000, which was lower than the 365,000 that had been expected by the Briefing.com consensus. The tally was above the revised prior week count of 368,000. As for continuing claims, they fell to 3.114 million from 3.244 million.

08:05 am : [BRIEFING.COM] S&P futures vs fair value: -4.30. Nasdaq futures vs fair value: -11.00.

U.S. equity futures are lower amid downbeat European trade. The cautious sentiment follows the release of several disappointing GDP growth reports.

Looking at overseas developments:

Asian markets registered gains. Hong Kong's Hang Seng added 0.9% and Japan's Nikkei gained 0.5%. Meanwhile, China's Shanghai Composite remained shuttered for the Lunar New Year.
In economic data:
The Bank of Japan raised its economic assessment after the country reported its third consecutive contractionary GDP reading. For the fourth quarter, GDP contracted 0.1% according to the preliminary reading.
New Zealand's Business PMI was reported at 55.2, ahead of the prior reading of 50.4. Meanwhile, the food price index rose 1.9% month-over-month to follow the prior month's decline of 0.2%.
South Korea left its key interest rate unchanged at 2.75%, as expected.
Looking at news:
Japan's Minister of Economy Akira Amari said the economy remains weak but growth will gradually recover with help from the Bank of Japan.

European markets are broadly lower. The United Kingdom's FTSE is off by 0.7%, France's CAC is down 0.8%, and Germany's DAX is shedding 1.1%. On the periphery, Italy's MIB is sliding 1.1% and the Spanish IBEX is lower by 1.6%.
Looking at notable economic data:
Germany's preliminary fourth quarter GDP reading came in at -0.6%, worse than the -0.5% expected by the market. Meanwhile, the full-year 2012 reading pointed to growth of 0.7%.
In France, preliminary fourth quarter GDP was reported at -0.3%, worse than the downtick of 0.2% expected by the general consensus. Additionally, the country's nonfarm payrolls declined 0.2% quarter-over-quarter, in-line with expectations.
Italy's fourth quarter GDP contracted 0.9% while the market expected a decline of 0.6%.
Greek GDP dropped 6.0% during the fourth quarter. Meanwhile, unemployment climbed to 27%.
The disappointing regional GDP readings resulted in a fourth quarter Eurozone GDP contraction of 0.6%. This was worse than the decline of 0.4% expected by the general consensus.
Spanish industrial new orders dropped 3.1% while a decline of 1.0% was expected.
In news:
French Prime Minister Jean-Marc Ayrault said the country will miss the 2013 deficit goals due to disappointing growth.
German Economy Minister Philipp Roesler said he believes weakness in the German economy is only temporary.

In U.S. corporate news:

H.J. Heinz (HNZ 72.75, +12.27) is surging 20.3% after the company confirmed an agreement to be acquired by Berkshire Hathaway (BRK.B 97.71, -0.26) and 3G Capital for $72.50 per share. The total transaction is valued at $28 billion and the purchase price represents a 20% premium to Heinz's Wednesday closing price.
Constellation Brands (STZ 40.26, +8.38) is jumping 26.4% after the company along with Anheuser Busch Inbev (BUD 92.42, +4.16) announced a revised agreement for the divesture of the U.S. business of Grupo Modelo.

Weekly initial and continuing claims will be reported at 8:30 ET.

The U.S. Treasury will auction off $16 billion in 30-yr bonds.

06:33 am : [BRIEFING.COM] S&P futures vs fair value: -6.00. Nasdaq futures vs fair value: -12.50.

06:33 am : Nikkei...11307.28...+55.80...+0.50%. Hang Seng...23413.25...+198.10...+0.90%.

06:33 am : FTSE...6306.27...-52.90...-0.80%. DAX...7610.14...-101.70...-1.30%.

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 Image@ http://stocktwits.com/wrbtrader

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