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 Post subject: October 23rd Wednesday Trade Results - Loss $3510.00
PostPosted: Wed Oct 23, 2013 11:02 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)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
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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 @ $240.00 dollars or +2.40 points, Emini ES ($ES_F) futures @ ($3750.00) dollars or -75.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Loss @ $3510.00 dollars.

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
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup

In addition, all of my trades were posted real-time in the chat room. You can read today's chat room logs for details about each one of my trades via price action trading from entry to exit (e.g. time, price, contract size) along with price action commentary as the trade traversed to its completion...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=122&t=1632

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. Simply, my trade method is applicable for position trading, swing trading and day 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=221&t=2029

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Market Context Summaries

The below summaries by Bloomberg, CNNMoney, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/BOE/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 for price action trading 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.

Stocks Slip As Investors Focus On Earnings

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

NEW YORK (CNNMoney)
Stocks retreated from record highs Wednesday as investors focused on corporate earnings, including a dour outlook from economic bellwether Caterpillar.

The Dow Jones industrial average, the S&P 500 and the Nasdaq all fell modestly.

The S&P 500 hit a new peak Tuesday after a disappointing jobs report for September fueled expectations that the Federal Reserve will delay plans to scale back its massive bond-buying program until 2014.

But the momentum faded Wednesday as investors sifted through a raft of mixed reports from Corporate America.

"Earnings are certainly the focus," said Art Hogan, managing director at Lazard Capital Markets. "On balance, we've had more bad news than good news over the last 24 hours."

Investors were also grappling with "global macro issues," he added. Chinese stocks fell sharply on concerns about rising money market rates and risky bank lending. European markets were under pressure after the European Central Bank said banks would be subjected to more stringent stress tests.

However, Hogan said the retreat was not surprising given the recent rally. Stocks had gained for the past five days in a row.

* More banks in the crosshairs after JPM deal

A mixed bag of earnings: Dow component Caterpillar (CAT, Fortune 500) reported a slump in sales and earnings, noting that a slowdown in the mining sector has taken a bite out of heavy equipment manufacturing. Caterpillar shares were down 6%.

"$CAT so this means i should be able to get a great deal on that bulldozer i've had my eye on!?" quipped StockTwits user Captain_Hindsight.

But Boeing (BA, Fortune 500), which is also in the Dow, rose 5% after the company reported a surge in quarterly profit and revenue as the aircraft manufacturer works its way through a backlog of orders.

"i guessed the right direction for earns move on $BA," said racernic. "still holding. lotto $,"

It appears the government shutdown did not have a big impact on defense contractors. Rival Northrop Grumman (NOC, Fortune 500) reported earnings and sales above expectations and raised its outlook for the year. Lockheed Martin (LMT, Fortune 500) also reported strong results on Tuesday, sending its stock sharply higher.

Shares of Broadcom (BRCM, Fortune 500) sank 3% after the chipmaker said Tuesday that sales will be below analysts' expectations in the fourth quarter. One trader said Qualcomm (QCOM, Fortune 500) might be a better bet in the communications chip sector.

"$BRCM 52w low very possible today. want to invest in mobile chips? pick QCOM," said HookEM.

AT&T (T, Fortune 500) reported earnings after the closing bell that topped forecasts. Sales were roughly in line with estimates.

So far, 80 of the 130 S&P 500 companies have beat expectations, according to S&P Capital IQ. But many analysts still expect relatively weak earnings for the rest of the year.

Shares of Corning (GLW, Fortune 500) rallied after the company announced a $2 billion stock buyback, as well as a deal to take full control of a partnership with Samsung Display, which manufactures LCD glass used by makers of smartphones and tablets.

Netflix (NFLX) shares bounced back from a sharp decline Tuesday, even though hedge fund manager Carl Icahn revealed late Tuesday that he had reduced his stake in the company. Despite the rebound, some traders still see more downside ahead for Netflix shares.

"$NFLX If many longs decide to take some profits and follow Carl's suit, could see <$300 even with that positive ER. Still overvalued," said IjustGUESS.

Apple (AAPL, Fortune 500) rose 1%. Icahn tweeted late Wednesday that he has sent a letter to Apple CEO Tim Cook, and that the letter will be available Thursday on a new website Icahn is launching. Icahn took a stake in Apple earlier this year and has been pressuring the company to give back some of its cash to shareholders through a bigger stock buyback.

Image



4:10 pm : The major averages posted losses across the board as the Nasdaq (-0.7%) led to the downside.

Stocks slumped at the open as cautious-sounding headlines from China combined with continued weakness among momentum names conspired to keep equities in the red throughout the session.

Reports out of the Middle Kingdom suggested the largest Chinese banks saw their debt write-offs triple during the first half of the year. Separate headlines indicated the People's Bank of China may tighten monetary policy due to excessive inflation. The liquidity crunch has made its presence known through the overnight Shanghai Interbank Offered Rate (SHIBOR), which jumped 73 basis points to 3.78%.

In addition to the news from China, stocks had to endure continued weakness among momentum names. Shortly after yesterday's close, activist investor Carl Icahn said he halved his stake in Netflix (NFLX 330.24, +7.72) after booking a 457% gain over the course of 14 months. Netflix outperformed today, but other momentum darlings like LinkedIn (LNKD 240.76, -4.19), Tesla (TSLA 164.50, -7.04), and Yelp (YELP 66.04, -3.37) posted losses as some participants may have taken a cue from Mr. Icahn, cashing in on some of this year's top performers.

Chipmakers were also victimized by heavy selling as the PHLX Semiconductor Index tumbled 3.4% after Altera (ALTR 32.30, -5.02) reported disappointing earnings and Broadcom (BRCM 26.36, -0.78) issued cautious guidance.

Even though select tech names displayed significant losses, the broader sector ended in-line with the S&P. Meanwhile, most other cyclical groups underperformed and the industrial sector (unch) was the only cyclical group that ended ahead of the broader market.

Industrials outperformed, building on the relative strength of Boeing (BA 129.02, +6.54), Norfolk Southern (NSC 86.06, +5.46), and Northrop Grumman (NOC 105.56, +4.10) after the three reported better-than-expected earnings. However, the sector could not turn positive due to the underperformance of Caterpillar (CAT 83.76, -5.41), which lost 6.1% after missing on earnings, revenue, and issuing cautious guidance.

Although equity indices spent the entire session in negative territory, only the energy sector (-1.4%) posted a loss exceeding 1.0% as crude oil slid 1.4% to $96.95 per barrel.

Countercyclical sectors outperformed with consumer staples ending in the lead with a modest gain of 0.1%.

Treasuries registered modest gains as the 10-yr yield slipped 2.5 basis points to 2.49%.

Trading volume was a bit below average as less than 710 million shares changed hands on the floor of the New York Stock Exchange.

On the economic front, the weekly MBA Mortgage Index slipped 0.6% to follow last week's uptick of 0.3%.

Separately, the August Housing Price Index from the FHFA increased 0.3%, which followed an increase of 0.8% observed during the prior month.

Lastly, export prices, excluding agriculture, ticked up 0.3% in September after an unchanged prior reading. Excluding oil, import prices rose 0.1%, which followed last month's decline of 0.2%.

Tomorrow, weekly initial claims and the August trade deficit will all be reported at 8:30 ET.DJ30 -54.33 NASDAQ -22.49 SP500 -8.29 NASDAQ Adv/Vol/Dec 1003/1.82 bln/1539 NYSE Adv/Vol/Dec 1359/708.2 mln/1644

3:30 pm :

Precious metals chopped around in negative territory today, with Dec gold and Dec silver falling to respective session lows of $1329.60 and $22.54 per ounce
Unable to gain much momentum, gold settled 0.6% lower at $1334.30 per ounce, while silver settled with a 0.8% loss at $22.61 per ounce
Dec crude oil fell for a third consecutive session following inventory data. The EIA reported that crude oil inventories had a build of 5.25 mln barrels when a smaller build of 2.95 mln barrels was anticipated. The energy component brushed a session low of $96.16 per barrel and settled with a 1.5% loss at $96.87 per barrel
In contrast, Nov natural gas traded higher, advancing to a session high of $3.64 per MMBtu in early afternoon pit trade. It eventually settled with a 1.1% gain at $3.62 per MMBtu

DJ30 -68.49 NASDAQ -26.28 SP500 -9.60 NASDAQ Adv/Vol/Dec 1001/1540.7 mln/1536 NYSE Adv/Vol/Dec 1269/484 mln/1722

3:00 pm : The S&P 500 hovers near its afternoon rebound high as today's session heads into the final hour. Prior to the open, investors received a full slate of quarterly reports from influential names like Boeing (BA 128.55, +6.07), Caterpillar (CAT 83.43, -5.74), and Norfolk Southern (NSC 85.47, +4.87). Overall, the results have been mostly better-than-expected, but Caterpillar disappointed with its results and cautious guidance.

More than 80 companies covered by Briefing.com will report their results after the closing bell. AT&T (T 35.32, +0.09), O'Reilly Auto (ORLY 133.09, -0.68), and Symantec (SYMC 24.77, -0.44) are among the notable names on today's reporting schedule.DJ30 -44.66 NASDAQ -22.69 SP500 -7.04 NASDAQ Adv/Vol/Dec 1046/1.38 bln/1468 NYSE Adv/Vol/Dec 1345/438.6 mln/1632

2:30 pm : Not much has changed since our last update as the major averages continue to hold their recent levels.

With the partial government shutdown in the rear-view mirror, participants have been receiving some economic reports that were delayed by the temporary shutdown. On that note, the August Housing Price Index from the FHFA increased 0.3%, which followed an uptick of 0.8% observed during the prior month.

Homebuilders appear to have been bolstered by the report as the iShares Dow Jones US Home Construction ETF (ITB 22.53, +0.21) trades higher by 0.9% after adding 2.5% yesterday. Thanks to today's advance, the homebuilder ETF is now unchanged in October.DJ30 -59.76 NASDAQ -28.44 SP500 -9.10 NASDAQ Adv/Vol/Dec 998/1.28 bln/1516 NYSE Adv/Vol/Dec 1303/405.4 mln/1680

2:05 pm : The S&P 500 trades lower by 0.6% as the relatively quiet afternoon continues. After retreating through the first hour of action, the S&P has been trapped inside of a five-point range between 1,742 and 1,747.

Even though stocks sold off early, the opening slide did not invite unusually heavy volume. With 374 million shares traded so far, today's session is likely to produce a total close to the 200-day average of 724 million.

Market breadth remains tilted to the downside as declining issues on the NYSE outpace advancers by a 1.3:1 ratio. On the Nasdaq, there are 1.5 decliners for each advancing name.DJ30 -72.54 NASDAQ -27.31 SP500 -9.50 NASDAQ Adv/Vol/Dec 1019/1.20 bln/1479 NYSE Adv/Vol/Dec 1327/377.7 mln/1660

1:30 pm : Stocks have held their levels for the past 30 minutes with the S&P 500 hovering near its rebound high. Cyclical sectors continue to weigh on the broader market and the industrial space (-0.2%) remains the lone outperformer among growth-sensitive groups.

Meanwhile, all four countercyclical groups trade ahead of the S&P. Utilities and consumer staples hold respective gains of 0.4% and 0.2% while health care and telecom services trade lower by 0.1% and 0.4%, respectively.

Treasuries have held near their highs for the past two hours as the 10-yr yield trades lower by three basis points at 2.48%.DJ30 -59.25 NASDAQ -23.91 SP500 -8.20 NASDAQ Adv/Vol/Dec 1026/1.11 bln/1457 NYSE Adv/Vol/Dec 1308/347.9 mln/1649

12:55 pm : Major equity indices hold midday losses with the S&P 500 down 0.6%. Stocks began the session in the red as headlines out of China contributed to the weakness among global equities. Specifically, press reports suggested top Chinese banks saw their debt write-offs triple during the first half of the year. Separate reports indicated the People's Bank of China may tighten monetary policy due to excessive inflation. The liquidity crunch has manifested itself in the overnight Shanghai Interbank Offered Rate (SHIBOR), which jumped 73 basis points to 3.78%.

Domestically, momentum names have widened their losses from yesterday with some participants likely taking a cue from activist investor Carl Icahn, who halved his Netflix (NFLX 328.31, +5.79) stake during yesterday's session after enjoying a 457% rally over 14 months. Netflix has displayed strength today while other momentum stocks like Facebook (FB 51.72, -0.95), Tesla (TSLA 162.16, -9.38), and Yelp (YELP 65.73, -3.68) hold losses between 1.8% and 5.3%.

The underperformance of high-beta names has weighed on the Nasdaq (-0.7%), which is the weakest index at this juncture. Chipmakers have been battered after Cree (CREE 62.36, -11.96) guided second-quarter earnings below analyst expectations. The broader PHLX Semiconductor Index trades down 3.2%.

Although the major averages remain near their lows, only the energy sector (-1.4%) trades with a loss larger than 1.0% as crude oil also trades lower by 1.4% at $96.91 per barrel.

Also of note, the industrial sector (-0.4%) is the only outperformer among cyclical groups. Defense contractors have contributed to the relative strength after Boeing (BA 127.35, +4.87) and Northrop Grumman (NOC 104.92, +3.46) reported above-consensus results. However, the sector has been kept in the red by Caterpillar (CAT 83.68, -5.49), which trades lower by 6.2% after reporting disappointing results and lowering its guidance below analyst expectations.

The weekly MBA Mortgage Index slipped 0.6% to follow last week's uptick of 0.3%.

Separately, the August Housing Price Index from the FHFA increased 0.3%, which follows an uptick of 0.8% observed during the prior month.

Lastly, export prices, excluding agriculture, ticked up 0.3% in September after an unchanged prior reading. Excluding oil, import prices rose 0.1%, which follows last month's decline of 0.2%.DJ30 -80.81 NASDAQ -28.38 SP500 -10.45 NASDAQ Adv/Vol/Dec 995/1.01 bln/1482 NYSE Adv/Vol/Dec 1274/320.6 mln/1656

12:30 pm : With a number of momentum stocks under continued selling pressure, there are elements of defensive posturing in today's session as participants sense a period of consolidation may be in order after the S&P 500 climbed 6% over the last ten sessions.

In the stock market, today's relative strength leaders are the utilities (+0.3%), consumer staples (+0.1%), and telecom services (-0.1%) sectors.

In turn, longer-dated Treasuries continue to run. The benchmark 10-year note is up 8 ticks and its yield has slipped to 2.48%, which is 52 basis points lower than where it stood in early September.


Given the signs of weakness in many momentum stocks, participants appear to be positioning for a near-term pickup in volatility. The CBOE Volatility Index (VIX 13.95, +0.62), which got hammered after the budget and debt ceiling issues were forestalled, is up 4.7% today.DJ30 -91.13 NASDAQ -33.42 SP500 -11.52 NASDAQ Adv/Vol/Dec 949/941 mln/1517 NYSE Adv/Vol/Dec 1258/299 mln/1670

12:00 pm : The S&P 500 trades five points off its low as it attempts to trim its opening loss. Countercyclical sectors have contributed to the rebound effort while most cyclical groups continue to weigh.

The industrial space (-0.2%) is the lone outperformer among growth-sensitive sectors as defense contractors display strength. Boeing (BA 127.67, +5.19) and Northrop Grumman (NOC 105.12, +3.66) hold respective gains of 4.2% and 3.6% after both names reported better-than-expected earnings. The broader PHLX Defense Index trades higher by 0.8%.

Transports also trade higher with the Dow Jones Transportation Average up 0.4% after Norfolk Southern (NSC 84.46, +3.86) delivered a strong quarterly report.DJ30 -59.92 NASDAQ -28.41 SP500 -9.03 NASDAQ Adv/Vol/Dec 988/858.1 mln/1442 NYSE Adv/Vol/Dec 1270/275.3 mln/1640

11:30 am : The major averages have yet to distance themselves from their lows as eight of ten sectors remain in the red.

Momentum names displayed significant weakness yesterday with the 9.2% decline in Netflix (NFLX 330.59, +8.07) highlighting the losses among some of this year's high flyers. Shortly after the close, activist investor Carl Icahn reported trimming his stake in Netflix to 4.5% from 9.4% following a 457% rally over 14 months.

Shares of the online video streaming service are rebounding today, but other momentum names underperform as some participants may have taken a cue from Mr. Icahn's comments. Tesla (TSLA 164.51, -7.03), LinkedIn (LNKD 239.16, -5.79), and Yelp (YELP 65.83, -3.58) trade with losses ranging from 2.4% to 5.3%.DJ30 -75.37 NASDAQ -33.17 SP500 -10.01 NASDAQ Adv/Vol/Dec 902/752.2 mln/1521 NYSE Adv/Vol/Dec 1169/246.2 mln/1730

11:00 am : The major averages remain pressured with all three indices hovering near their worst levels of the day. The Dow (-0.5%) trades ahead of the S&P 500 (-0.6%) while the Nasdaq (-0.9%) lags.

In order for the benchmark S&P 500 to trim its losses, the index will need to receive some cooperation from influential sectors like energy (-1.4%), financials (-0.9%), and technology (-0.9%) after the three groups fueled the opening decline.

On the upside, the utilities space (+0.6%) continues to trade near its high while the remaining countercyclical sectors outperform with losses ranging from 0.1% to 0.5%.

With equities displaying continued weakness, Treasuries have garnered some additional interest as the 10-yr yield now trades lower by three basis points at 2.49%.DJ30 -69.49 NASDAQ -35.32 SP500 -11.05 NASDAQ Adv/Vol/Dec 827/631.2 mln/1567 NYSE Adv/Vol/Dec 1084/213.8 mln/1790

10:35 am : Commodities have taken a hit this morning on broad market weakness.

Crude oil prices continued to fall and hit a new LoD in recent trading activity. Dec crude oil is now -2.0% at $96.30/barrel.

Natural gas futures hit a new HoD a short while ago, but quickly pullback, erasing most of those gains. Nov nat gas is now +0.7% at $3.61/MMbtu.

Metals remain lower this morning... Dec gold is now -0.7% at $1332.60/oz, Dec silver is -0.6% at $22.66/oz, Dec copper is -1.9% at $3.27/lb.DJ30 -66.03 NASDAQ -31.22 SP500 -10.39 NASDAQ Adv/Vol/Dec 730/500.2 mln/1612 NYSE Adv/Vol/Dec 1016/177 mln/1810

10:00 am : The major averages have continued retreating from their opening levels with the energy sector leading the decline. The heavily-weighted sector now trades with a loss of 1.4% while no other group sports a loss larger than 1.0%. Crude oil has also displayed weakness, trading lower by 1.8% at $96.50 per barrel.

Countercyclical sectors continue to outperform and the utilities space (+0.8%) is the only advancing sector at this juncture.

With stocks registering early losses, the CBOE Volatility Index (VIX 14.09, +0.76) hovers near yesterday's session high.DJ30 -97.36 NASDAQ -38.29 SP500 -12.81 NASDAQ Adv/Vol/Dec 547/298.4 mln/1731 NYSE Adv/Vol/Dec 878/119.7 mln/1898

09:45 am : As expected, equities began the session in the red with energy (-1.0%), materials (-0.5%), and financials (-0.7%) weighing on the broader market. Meanwhile, all four countercyclical sectors-consumer staples, health care, telecom services, and utilities-outperform with losses limited to no more than 0.4%.

Elsewhere, the industrial sector (-0.1%) trades ahead of the broader market as the 4.8% gain in the shares of Boeing (BA 128.35, +5.87) overshadows the 5.8% loss in Caterpillar (CAT 83.95, -5.22). Boeing is rallying after beating on earnings and revenue while Caterpillar has tumbled below its 100-day moving average after reporting disappointing results and issuing cautious guidance.

Treasuries hold modest gains with the benchmark 10-yr yield down one basis point at 2.50%.DJ30 -41.36 NASDAQ -18.47 SP500 -5.98 NASDAQ Adv/Vol/Dec 641/163.2 mln/1549 NYSE Adv/Vol/Dec 829/81.4 mln/1842

09:19 am : [BRIEFING.COM] S&P futures vs fair value: -6.20. Nasdaq futures vs fair value: -15.50. The S&P 500 is poised to register modest losses at the start of the session after rising 6.0% over the past ten affairs. Global equities have been pressured this morning after it was reported that top Chinese banks tripled their debt write-offs during the first half of the year. In addition, reports suggest the People's Bank of China may tighten its policy amid increasing inflationary pressures.

Also of note, following yesterday's 9.2% plunge in the shares of Netflix (NFLX 316.00, -6.52), activist investor Carl Icahn announced that he cut his stake in the company to 4.5% from 9.4% following a dizzying 457% advance over 14 months.

Quarterly earnings have continued pouring in today. Dow component Boeing (BA 126.55, +4.07) holds a pre-market gain of 3.3% after beating on earnings and revenue. Another Dow member, Caterpillar (CAT 84.20, -4.97), is lower by 5.7% after missing top and bottom line expectations.

09:00 am : S&P futures vs fair value: -6.10. Nasdaq futures vs fair value: -15.00. The S&P 500 futures trade lower by 0.4%.

Asian markets ended broadly lower with Japan's Nikkei (-2.0%) leading to the downside. However, the weakness originated in China amid indications the PBoC may tighten monetary policy due to inflation concerns. On a related note, the Shanghai Interbank Offered Rate (SHIBOR) rose notably with the overnight rate adding almost 73 basis points to 3.78%. Meanwhile, the one-month rate climbed 11 basis points to 4.81%. Regional economic data was limited to news from Australia where the CPI rose 1.2% quarter-over-quarter (0.8% forecast, 0.4% prior) while the year-over-year reading increased 2.2% (1.8% expected, 2.4% previous). In addition, trimmed mean CPI rose 0.7% quarter-over-quarter (0.6% forecast, 0.6% prior) and weighted mean CPI increased 0.6% quarter-over-quarter (0.6% expected, 0.6% previous). Separately, the CB Leading Index came in at -0.2% (0.3% prior).

In Japan, the Nikkei closed lower by 2.0% as industrials weighed. Fujikara and Mitsui Engineering & Shipbuilding lost 4.2% and 4.7%, respectively. Drug maker Astellas outperformed with a gain of 2.1%.
Hong Kong's Hang Seng lost 1.4% with energy and utilities lagging. CNOOC fell 3.0% and China Resources Power fell 2.7%.
In China, the Shanghai Composite fell 1.3%. Industrials underperformed with Hubei Hongcheng General Machinery falling the limit, 10.0%.

Major European indices trade lower with Spain's IBEX (-1.7%) as the weakest performer even after the Bank of Spain said the country's economy expanded 0.1% during the third quarter. Elsewhere, the Bank of England released the minutes from its latest policy meeting, revealing a unanimous vote to maintain interest rates and the asset purchase program at their current 0.5% and GBP375 billion, respectively. Economic data was limited. Great Britain's BBA Mortgage Approvals rose 43,000 (39,400 expected, 38,800 prior). Italy's non-EU trade surplus narrowed to EUR320 million from EUR570 million. French Business Survey ticked up to 98 from 97, as expected. Spain's trade deficit widened to EUR1.80 billion from EUR800 million (deficit of EUR2.50 billion expected).

Great Britain's FTSE is lower by 0.3% as financials and miners weigh. Anglo American and Antofagasta are both down near 3.0% and Royal Bank of Scotland trades with a loss of 2.3%.
In Germany, the DAX holds a loss of 0.3%. Commerzbank and Deutsche Bank lead to the downside with respective losses of 2.8% and 1.7%. Drug maker Merck outperforms with a gain of 1.1%.
France's CAC trades down 0.8%. STMicroelectronics is the weakest index component, down 6.8% after reporting disappointing earnings. On the upside, Veolia Environnement outperforms with a gain of 0.8%.
In Spain, the IBEX is lower by 1.7% as 31 of 35 names trade in the red. Financials lag with Bankinter and Banco Bilbao Vizcaya Argentaria down 4.1% and 3.2%, respectively.

In domestic economic data, the August Housing Price Index from the FHFA increased 0.3%, which follows an uptick of 0.8% observed during the prior month.

08:32 am : [BRIEFING.COM] S&P futures vs fair value: -7.60. Nasdaq futures vs fair value: -18.80. The S&P 500 futures trade lower by 0.5%.

Export prices, excluding agriculture, ticked up 0.3% in September after an unchanged prior reading. Excluding oil, import prices rose 0.1%, which follows last month's decline of 0.2%.

07:55 am : U.S. equity futures hover near their lows amid cautious overseas action. Global equities have been pressured throughout the night amid indications the People's Bank of China may tighten monetary policy due to inflation concerns. Contributing to the weakness were reports of top Chinese banks tripling their debt write-offs during the first half of the year. The S&P 500 futures trade lower by 0.5%.

Reviewing overnight developments:

Asian markets ended broadly lower. China's Shanghai Composite -1.3%, Hong Kong's Hang Seng -1.4%, and Japan's Nikkei -2.0%.
In regional economic data:
Australia's CPI rose 1.2% quarter-over-quarter (0.8% forecast, 0.4% prior) while the year-over-year reading increased 2.2% (1.8% expected, 2.4% previous). In addition, trimmed mean CPI rose 0.7% quarter-over-quarter (0.6% forecast, 0.6% prior) and weighted mean CPI increased 0.6% quarter-over-quarter (0.6% expected, 0.6% previous). Separately, the CB Leading Index came in at -0.2% (0.3% prior).
In news:
In China, the Shanghai Interbank Offered Rate (SHIBOR) rose notably with the overnight rate adding almost 73 basis points to 3.78%. Meanwhile, the one-month rate climbed 11 basis points to 4.81%.

Major European indices trade lower with peripheral indices underperforming. Great Britain's FTSE -0.4%, Germany's DAX -0.5%, and France's CAC -1.0%. Elsewhere, Italy's MIB -1.7% and Spain's IBEX -2.0%.
Economic data was limited:
Great Britain's BBA Mortgage Approvals rose 43,000 (39,400 expected, 38,800 prior).
Italy's non-EU trade surplus narrowed to EUR320 million from EUR570 million.
French Business Survey ticked up to 98 from 97, as expected.
Spain's trade deficit widened to EUR1.80 billion from EUR800 million (deficit of EUR2.50 billion expected).
Looking at news:
The Bank of England released the minutes from its latest policy meeting, which revealed a unanimous vote to maintain interest rates and the asset purchase program at their current 0.5% and GBP375 billion, respectively.

In U.S. corporate news:

American Electric Power (AEP 45.00, -0.24): -0.5% after reporting an earnings beat on below-consensus revenue.
Boeing (BA 125.20, +2.72): +2.5% following its bottom-line beat on above-consensus revenue.
Broadcom (BRCM 24.95, -2.17): -8.1% after its cautious fourth-quarter guidance overshadowed its earnings beat.
Caterpillar (CAT 86.00, -3.17): -3.8% after missing on earnings and revenue. In addition, the machinery manufacturer lowered its full-year 2013 guidance well below analyst estimates.
Corning (GLW 18.75, +3.40): +22.5% after acquiring full ownership of Samsung Corning Precision Materials from Samsung.
Eli Lilly (LLY 50.50, +0.35): +0.7% after beating on earnings and raising the low end of its full-year earnings guidance.
Motorola Solutions (MSI 61.30, +0.87): +1.4% following better-than-expected earnings.
Northrop Grumman (NOC 103.00, +1.54): +1.5% after beating on earnings and revenue and guiding full-year results above analyst expectations.
STMicroelectronics (STM 8.14, -0.55): -6.3% following its bottom-line miss on below-consensus revenue.
Wellpoint (WLP 90.55, +2.12): +2.4% after beating on earnings.

The weekly MBA Mortgage Index slipped 0.6% to follow last week's uptick of 0.3%.

September export prices ex-agriculture and import prices ex-oil will be released at 8:30 ET and the August FHFA Housing Price Index will be announced at 9:00 ET.

07:30 am : [BRIEFING.COM] S&P futures vs fair value: -9.00. Nasdaq futures vs fair value: -21.50.

07:30 am : Nikkei...14426.05...-287.20...-2.00%. Hang Seng...22999.95...-316.00...-1.40%.

07:30 am : FTSE...6672.92...-22.70...-0.30%. DAX...8908.77...-38.60...-0.40%.

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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