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 Post subject: January 13th Monday Trade Results - Profit $2940.00
PostPosted: Mon Jan 13, 2014 8:36 pm 
Site Admin

Joined: Sat Jan 10, 2009 2:06 pm
Posts: 3453
Location: Canada

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:
Business Hours: 8am - 5pm est (Mon - Fri) (24/7) (24/7)

011314-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+2940.00.png [ 176.41 KiB | Viewed 85 times ]

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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $1,440.00 dollars or +14.30 points, Emini ES ($ES_F) futures @ $1,500.00 dollars or +30.00 points, Light Crude Oil CL ($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 Profit @ $2,940.00 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 @

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 ##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) my thought process from trade to trade so that I can easily review at a later date my thoughts as I interacted with the I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell. If you join the chat room and then you do not ask any questions about WRB Analysis in your own trading...the chat room will not be useful to you. Chat room access instructions @

Image Price Action Analysis via WRB Analysis Tutorials @ and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @

Image Trade Signal Strategies via Volatility Trading Report (VTR) @ and there's a free trade signal strategy @ so that you can freely test drive one of our price action trade strategies with support (answering your questions) prior to purchasing the Volatility Trading Report (VTR).

Image Trading Plan Daily Routine @


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, 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.

Dow Falls Nearly 200 Points

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

Investors moved to the sidelines Monday as they wait for a slew of corporate earnings reports later this week.

The Dow Jones industrial average fell 179 points, the worst one-day point drop in more than three months. The S&P 500 and the Nasdaq were both down more than 1%. CNNMoney's Tech 30 index also fell, despite gains in Twitter (TWTR), Hewlett-Packard (HPQ, Fortune 500) and Netflix (NFLX).

In other Tech 30 news, Google (GOOG, Fortune 500) announced after the closing bell that it planned to buy Nest Labs, which makes home automation technology, for $3.2 billion.

Investors are still digesting Friday's jobs report, which showed a big slowdown in job creation in the final month of 2013. Despite the lousy jobs news, stocks managed to end higher Friday as investors generally believe the economy will continue to improve in 2014.

The slowdown in hiring raised questions about the Federal Reserve's plan to cut back on, or taper, its bond buying program. The Fed has announced plans to trim its purchases by $10 billion to $75 billion beginning this month.

Stocks were lower all day but extended their declines after Atlanta Fed President Dennis Lockhart said he would support further tapering this year, assuming the economy continues to improve. However, Lockhart is not a voting member of the Fed's policy committee and his comments were similar to previous statements.

Economists say the Fed will probably wait to see if the December payroll report was an anomaly before making any major changes to monetary policy.

* Wolves of Wall Street to report earnings

Now investors are looking ahead to the first big round of fourth quarter earnings coming later in the week.

JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) are scheduled to report Tuesday morning, while other big banks Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500), Goldman Sachs (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500) are also on tap to report their results.

The financial sector is expected to post the biggest profit growth in the quarter, according to FactSet. But some investors worry that banks' revenue could be hurt by a slowdown in trading activity, particularly in the bond market.

Dow components General Electric (GE, Fortune 500) and Intel (INTC, Fortune 500) are up later in the week too.

Overall, FactSet expects earnings for the companies in the S&P 500 to be up 6.1% in the quarter.

Yet there has been an unusually high number of companies warning in advance that earnings will be below expectations. As of Friday, 88 companies in the S&P 500 had issued negative earnings guidance. That trend continued Monday with two more companies issuing profit warnings.

* Fear & Greed Index remains in Greed mode

What's moving: Yoga apparel retailer Lululemon (LULU) cut its fourth quarter earnings guidance, saying that traffic and sales have declined since the beginning of January. The stock tanked on the news, and at least one trader said Lululemon's products are simply too expensive for most consumers.

"$LULU Guys, I'm looking for a $120 stretch pants that I can only wear when I work out. Oh wait, I'm not crazy," said StockTwits user Sane.

SodaStream (SODA) shares plunged after the company said profits for 2013 will fall short of expectations, due in part to weak holiday sales in the United States. The sell-off revived talk that SodaStream is a takeover target.

"$SODA Market cap now under a billion. Lunch money take over for big names," said deedeebee2313.

Shares of Beam (BEAM) shot up after the spirits maker announced it was being acquired by Japan's Suntory for $16 billion. Beam, most well-known for its Jim Beam brand of bourbon, said the transaction was expected to close in the second quarter of 2014. Suntory is agreeing to pay $83.50 per share -- a 25% premium over Beam's closing price on Friday.

Twitter shares rose after analysts at Goldman Sachs praised the stock in a research report. Following a strong rally late last year, Twitter has been volatile in recent weeks amid concerns the stock is overvalued.

"$TWTR Price goes up and down now not because of value but because everyone is trying to determine it's value. take your position and trade," said Copernicus.

SeaWorld Entertainment (SEAS) reported record revenue of $1.46 billion for 2013, driven by strong attendance at the company's amusement parks during the fourth quarter, according to preliminary results. The stock rose more than 2%.

SeaWorld was the subject of a documentary that aired on CNN last year called Blackfish, which focuses on the dangers of keeping killer wales in captivity. Shares fell 14% in 2013.

Netflix shares jumped although there was no company specific news to explain it. One trader speculated that the Golden Globe victory for Robin Wright, star of the Netflix series House of Cards, could be a catalyst

"Looks like the Golden Globes wins really helped $NFLX this morning," said TheDayTradette.

* Ford unveils all-new F-150 in Detroit

Shares of General Motors (GM, Fortune 500) and Ford (F, Fortune 500) were little changed Monday as Detroit hosts the North American International Auto show. Major automakers use the event to showcase their newest vehicles and innovations.

European markets edged higher. Asian markets ended with mixed results.


4:10 pm: [BRIEFING.COM] The stock market endured a forgettable start to the new trading week as the major averages ended on their lows. The S&P 500 fell 1.3%, ending at its lowest level of 2014.

Equities began the session with modest losses and spent the first three hours of action near their flat lines. The indices were able to inch back into positive territory during the late morning, but the move lacked conviction and failed to invite dip-buyers to the party. Shortly thereafter, sellers were the ones partying as the indices spent the entire afternoon in a steady downdraft.

In all likelihood, the selling was exacerbated by the fact many participants were not positioned to absorb today's volatility. On that note, the CBOE Volatility Index (VIX 13.37, +1.23) began the session in the red and tested multi-month lows before afternoon weakness sparked a rush for downside protection.

All ten sectors ended in the red but cyclical groups saw the largest losses. The consumer discretionary sector (-2.0%) finished behind the remaining groups as retailers lagged after Bon-Ton Stores (BONT 13.41, -2.09), Express (EXPR 18.15, -0.87), Lululemon (LULU 49.70, -9.90), and PVH (PVH 129.55, -2.58) issued disappointing guidance. The four names lost between 2.0% and 16.6% while the SPDR S&P Retail ETF (XRT 83.36, -2.48) fell 2.9%, widening its January loss to 5.4%. For its part, the discretionary sector extended its January decline to 2.6% after ending 2013 ahead of the remaining nine sectors with a gain of 40.4%.

Elsewhere, the energy space (-1.9%) also played a significant part in pressuring the broader market. The sector lagged throughout the session as crude oil fell 0.9% to $91.78 per barrel. The other commodity-related sector-materials (-1.4%)-fared a bit better but also finished behind the S&P 500 even as gold futures added 0.4% to $1251.10 per troy ounce.

On the countercyclical side, consumer staples (-0.6%), health care (-0.8%), telecom services (-1.1%), and utilities (-0.9%) finished ahead of the broader market.

In M&A news, Beam (BEAM 83.42, +16.45) surged 24.6% after the company agreed to be acquired by Suntory Holdings for $83.50 per share.

Despite the selloff, participation was below average as 719 million shares changed hands on the floor of the New York Stock Exchange.

Treasuries ended on their highs with the 10-yr yield down three basis points at 2.83%.

Economic data was limited to the December Treasury budget, which showed a surplus of $53.20 billion after showing a deficit of $1.20 billion in December 2012.

Tomorrow, December Retail Sales as well as December export prices ex-agriculture and import prices ex-oil will be reported at 8:30 ET while the November Business Inventories report will cross the wires at 10:00 ET.

Russell 2000 -1.2% YTD
Nasdaq -1.5% YTD
S&P 500 -1.6% YTD
DJIA -1.9% YTD

3:30 pm: [BRIEFING.COM]

Feb natural gas outperformed the commodities space today, rising on near-term forecasts for colder weather. It climbed as high as $4.29 per MMBtu after coming off its session low of $4.20 per MMBtu set in early morning floor action. It settled with a solid 5.2% gain at $4.27 per MMBtu
Feb crude oil extended Friday's losses as it spent all of today's pit trade in negative territory. The energy component brushed a session high of $92.38 per barrel shortly after equity markets opened but slipped back below the $92 per barrel level. It brushed a session low of $91.65 per barrel moments before settling with a 0.9% loss at $91.78 per barrel
Feb gold rose for a third consecutive session, lifting from a session low of $1243.90 per ounce set at pit trade open. The yellow metal brushed a session high of $1252.80 per ounce by late morning action. It eventually settled with a 0.4% gain at $1251.10 per ounce
Mar silver also trended higher today. It broke into positive territory in late morning floor trade after trading as low as $19.97 per ounce earlier in the session. It touched a session high of $20.43 per ounce moments before settling at $20.37 per ounce, or 0.7% higher.

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 1.1% with one hour remaining in today's session. The benchmark index was little changed through the first half of the trading day, but afternoon action has proven to be a one-way street. Given its current level, the S&P 500 is on track to register its lowest close of the month.

Also of note, the afternoon retreat has sent many participants in search of downside protection. The CBOE Volatility Index (VIX 13.03, +0.89) is higher by 7.5% after staging an impressive reversal. The near-term volatility measure traded at a five-month low this morning but surged as equities headed lower.

2:30 pm: [BRIEFING.COM] The major averages have dropped to new lows as sellers remain in control. The S&P 500 is now lower by 0.9% with five of ten sectors holding losses of at least 1.0%.

Although today's selling has unfolded in broad-based fashion, countercyclical groups have done a decent job withstanding the pressure. As a result, consumer staples, health care, and utilities trade ahead of the S&P 500 with losses between 0.4% and 0.8% while telecom services lag. The smallest S&P 500 sector trades lower by 1.2%.

Meanwhile, four out of six cyclical groups trade with losses larger than the broader market while technology (-0.4%) and industrials (-0.6%) outperform.

Treasuries have been climbing steadily throughout the day and the 10-yr yield is now down three basis points at 2.83%.

2:05 pm: [BRIEFING.COM] Equity indices remain pinned to their lows as the afternoon continues. Despite today's slide, intraday trading volume has been on the light side with only 327 million shares traded at the NYSE so far. The Nasdaq, however, has seen a bit more activity with more than 1.3 billion shares traded.

Market breadth remains tilted to the downside with nearly 2 declining issues for every name trading higher.

Just reported, the December Treasury Budget showed a surplus of $53.20 billion, which followed the prior month's deficit of $1.20 billion. The consensus expected the surplus to hit $44.00 billion. This report has mattered little to market participants as equity indices did not respond to the news.

1:25 pm: [BRIEFING.COM] The major indices have been caught in a downdraft for the better part of the last hour, knocking them all to new lows for the session. The selling has been broad-based and it can be said that it has been evenly distributed according to market cap size.

Every sector in the S&P 500 is trading lower and the Dow, Nasdaq, S&P 500, S&P Midcap 400, and Russell 2000 are all down between 0.7% and 0.9%.

The weakness has fed on itself so to speak as a dormant buy-the-dip mentality has triggered follow-through selling efforts that have pierced technical support levels at 1837/1836 and 1832/1830. The next support level comes in at 1824/1823.

The Treasury market appears to be benefiting at the expense of the stock market. The 10-yr note (+8/32) is trading near its best levels of the day with its yield at 2.83%. That is roughly 19 basis points lower than where it settled on December 31.

12:55 pm: [BRIEFING.COM] At midday, the major averages hover near their lows with the S&P 500 down 0.3%. The first half of the session saw the key indices follow their lower open with a brief appearance in positive territory, but the gains were slight and short-lived.

Nine of ten sectors hold midday losses with energy (-1.2%) leading the retreat. Today's loss has extended the sector's January decline to 2.7%, which puts energy behind the remaining cyclical groups. Crude oil has contributed to today's decline as it trades lower by 0.7% at $92.11/bbl.

Elsewhere, last year's top sector, consumer discretionary (-0.9%), has been pressured by retailers after Bon-Ton Stores (BONT 13.42, -2.08), Express (EXPR 18.52, -0.49), Lululemon (LULU 50.32, -9.28), and PVH (PVH 131.69, -0.44) primed the market for weaker-than-expected results. The SPDR S&P Retail ETF (XRT 84.47, -1.37) trades lower by 1.6%, extending its January loss to 4.1%. Meanwhile, the discretionary sector is down 1.5% this month after soaring 40.4% in 2013.

Although most groups trade in the red, the technology sector (+0.2%) is the lone advancer as top-weighted components contribute to its strength. With that in mind, Apple (AAPL 540.84, +7.90), Google (GOOG 1139.18, +9.00), and Intel (INTC 25.76, +0.23) hold gains between 0.8% and 1.4%.

Over on the countercyclical side, all four sectors hover in the red but consumer staples (-0.2%) and health care (-0.2%) trade ahead of the broader market while telecom services (-0.9%) and utilities (-0.8%) lag.

Notably, the staples sector has received support from distillers after Beam (BEAM 83.08, +16.11) agreed to be acquired by Suntory Holdings for $83.50 per share, representing a 24.7% premium.

Treasuries hover near their highs with the benchmark 10-yr yield down two basis points at 2.84%.

12:30 pm: [BRIEFING.COM] Recent action saw the S&P 500 (-0.3%) drop to its session low but the magnitude of its loss remains limited. At its current level, the benchmark index hovers at the bottom of a seven-point range that has held throughout the morning.

Despite trading modestly lower, the broader market is holding up relatively well considering several retailers have warned about their upcoming results. As a result, last year's top sector, consumer discretionary, lags with a loss of 0.7%. Including today's decline, the discretionary sector is lower by 1.4% so far in January after surging 40.4% last year.

11:55 am: [BRIEFING.COM] Stock indices remain mixed as the Dow (-0.1%) and S&P 500 (-0.1%) display modest losses while the Nasdaq (+0.1%) outperforms.

Sector standing has not changed much since our previous updates as consumer staples (+0.2%), health care (+0.3%), and technology (+0.5%) continue to outperform. The industrial sector also trades ahead of the broader market, but its gain has been trimmed to less than 0.1%.

Meanwhile, the remaining six groups hold losses between 0.2% (materials) and 0.7% (energy).

Even though equity indices trade mixed, investors have not rushed into volatility protection as the CBOE Volatility Index (VIX 11.87, -0.27) trades lower by 2.2%. The near-term volatility measure is on track to register its lowest close since early August.

11:30 am: [BRIEFING.COM] The Dow and S&P 500 have dipped back below their flat lines while the Nasdaq (+0.1%) continues to hold a modest gain.

The tech-heavy index is being supported by some of its top-weighted listings as well as biotechnology. Apple (AAPL 541.25, +8.31), Google (GOOG 1143.18, +13.00), and Intel (INTC 25.90, +0.36) hold gains between 1.2% and 1.7% while the iShares Nasdaq Biotechnology ETF (IBB 241.62, +2.89) trades up 1.3%. On a related note, the strength of biotech has provided support to the health care sector (+0.3%), which is the second-best group of the day, trailing only the tech sector.

Outside of health care, the remaining defensive groups trade mixed as consumer staples (+0.1%) outperform while telecom services (-0.9%) and utilities (-0.6%) lag.

11:00 am: [BRIEFING.COM] The major averages have clawed their way back to their flat lines, but despite the rebound, individual sectors continue to trade in mixed fashion.

Three groups that displayed early strength-consumer staples (+0.2%), health care (+0.4%), and technology (+0.4%)-have built on their opening gains. Furthermore, the industrial sector (+0.2%) has joined the outperformers with help from defense contractors. The PHLX Defense Index trades higher by 0.5%.

On the downside, heavily-weighted consumer discretionary (-0.4%), energy (-0.6%), and financials (-0.3%) continue to weigh.

Treasuries hover near their highs with the 10-yr yield down one basis point at 2.85%.

10:35 am: [BRIEFING.COM] Commodities are mixed this morning with natural gas futures easily the best performing commodity (over 4% higher).

Energy and metals are mixed with WTI crude and brent crude oil is the red and natural gas, heating oil and RBOB gas futures are showing gains.

In current trade, Feb nat gas is +4.1% at $4.22/MMBtu, Feb WTI crude oil is -0.9% at $91.92/barrel.

In the metals space, copper, iron ore, silver and palladium futures are all lower this morning. Overnight on the London Metals Exchange, aluminum futures lost about 0.8%. On the upside, gold and platinum futures are trading higher. Feb gold is now +0.02% at $1247.10/oz, Mar silver is -0.6% at $20.11/oZ.

9:55 am: [BRIEFING.COM] The S&P 500 trades two points below its flat line.

With most sectors trading in the red at this juncture, there are only a handful of outperformers. As mentioned earlier, the technology sector (+0.3%) has displayed early strength with help from networking companies.

Elsewhere, the consumer staples sector is flat with Beam (BEAM 83.18, +16.21) contributing to the outperformance. Shares of the distiller trade higher by 24.2% after the company agreed to be acquired by Suntory Holdings for $83.50 per share, representing a 24.7% premium.

Also of note, the health care sector (+0.1%) holds a slim gain thanks in part to the relative strength of Dow component Merck (MRK 83.16, +16.19), which trades higher by 3.2% after selling its investigational RNAi Therapeutic assets to Alnylam Pharma (ALNY 88.19, +21.98).

9:40 am: [BRIEFING.COM] As expected, equity indices began the session in the red but the early losses have been limited. The S&P 500 trades lower by 0.1% as eight of ten sectors register losses.

Most cyclical groups trade in the red with consumer discretionary (-0.3%) and energy (-0.4%) leading the decline. The discretionary sector is being pressured by retailers following disappointing guidance from Express (EXPR 18.65, -0.37) and Lululemon (LULU 51.41, -8.18). The two hold respective losses of 2.1% and 13.8% while the broader SPDR S&P Retail ETF (XRT 85.29, -0.55) trades lower by 0.6%.

Elsewhere, the energy sector lags as crude oil trades lower by 0.4% at $92.31 per barrel.

On the upside, the technology space holds an early gain of 0.2%. Networking names are showing strength after Elliott Management announced a value plan for Juniper Networks (JNPR 25.59, +2.05). Elliott Management holds a 6.2% stake in Juniper.

9:14 am: [BRIEFING.COM] S&P futures vs fair value: -4.70. Nasdaq futures vs fair value: -7.50. The major averages are set to begin the new trading week on a lower note as the S&P 500 futures hover almost five points below fair value. Index futures spent the entire night in the red with upbeat action in Europe unable to lift them into positive territory.

The retail sector is likely to display some early weakness after Express (EXPR 18.51, -0.51) and Lululemon (LULU 51.80, -7.80) lowered their guidance. In addition, Express said it expects comparable-store sales to be flat while Lululemon primed the market for lower comparable sales.

While retailers are expected to pressure the discretionary sector in the early going, the consumer staples space will be underpinned by Beam (BEAM 83.89, +16.92), which trades higher by 25.3% after the company agreed to be acquired by Suntory Holdings for $83.50 per share, representing a 24.7% premium.

Treasuries hold modest gains with the 10-yr yield off one basis point at 2.86%.

8:56 am: [BRIEFING.COM] S&P futures vs fair value: -4.40. Nasdaq futures vs fair value: -5.00. The S&P 500 futures hover four points below fair value.

The major Asian bourses closed mostly higher, led by emerging markets. India's CPI eased to 9.9% year-over-year, as expected (11.6% previous).

In Japan, the approval rating of Prime Minister Shinzo Abe has increased to 62%. Elsewhere, China's Ministry of Finance expects 2014 GDP to come in at 7.5% with the lower limit at 7.0%.

Japan's Nikkei was closed for Coming-of-Age Day.
Hong Kong's Hang Seng added 0.2% amid a sleepy session. Real estate developers were mixed as Sino Land tacked on 1.5% while China Overseas Land lost 0.9%.
China's Shanghai Composite slipped 0.2% to its lowest level in five months as sellers remained in control for a fifth session. Technology shares were pressured as investors await an onslaught of IPOs that are expected to come to market. GoerTek gave up 2.6%.

Major European indices hold modest gains across the board with peripheral indices providing the lead. Economic data was limited to Italy's industrial production, which increased 1.4% year-over-year (0.1% expected, -0.4% prior).

The first half of today's session has been free of noteworthy headlines but Moody's commented on Portugal, saying the next date for potential rating action regarding the country falls on May 9th.

In France, the CAC holds a modest gain of 0.1%. Alcatel-Lucent leads with an advance of 4.7% amid reports the company is looking to sell its enterprise business.
Great Britain's FTSE trades higher by 0.2%. Financials Barclays and Royal Bank of Scotland are among the leaders with respective gains of 2.3% and 2.4%. On the downside, Tullow Oil trades lower by 2.1%.
Germany's DAX trades up 0.2% with banks in the lead. Commerzbank and Deutsche Bank are both up near 3.4%. Adidas lags with a loss of 1.7%.
Spain's IBEX sports a gain of 0.6%. Banco Popular Espanol and Bankia are higher by 5.7% and 1.1%, respectively.

8:30 am: [BRIEFING.COM] S&P futures vs fair value: -3.70. Nasdaq futures vs fair value: -4.00. U.S. equity futures hover in the red after spending the entire overnight session below their flat lines. With no pre-market data or macroeconomic news, investors are reacting to company-specific developments. On that note, apparel retailers are seeing early pressure after Express (EXPR 18.15, -0.87) and Lululemon (LULU 51.50, -8.10) lowered their guidance. The two names hold respective pre-market losses of 4.6% and 13.9% while peers Coach (COH 55.79, -0.29), Gap (GPS 39.64, -0.20), and Michael Kors (KORS 79.26, -0.54) are down close to 0.5% apiece.

Even though downside guidance has been the prevailing theme this morning, Wendy's (WEN 9.15, +0.71) holds a pre-market gain of 8.4% after issuing an upbeat outlook.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: -3.20. Nasdaq futures vs fair value: -2.00. U.S. equity futures hold modest losses despite generally upbeat overseas action. The S&P 500 futures trade three points below fair value.

Reviewing overnight developments:

Asian markets ended mixed. China's Shanghai Composite -0.2%, Hong Kong's Hang Seng +0.2%, and Japan's Nikkei was closed for Coming of Age Day.
Economic data was limited:
Australia's ANZ Job Advertisements fell 0.7% month-over-month (-0.9% prior) while Home Loans increased 1.1% month-over-month (1.0% expected, 1.1% last).
India's CPI rose 9.9% year-over-year, as expected (11.2% previous).
In news:
In Japan, the approval rating of Prime Minister Shinzo Abe has increased to 62%.
According to a Ministry of Finance researcher, China's 2014 GDP is expected to come in at 7.5% with a lower limit at 7.0%.

Major European indices trade mostly higher. Great Britain's FTSE +0.1%, France's CAC +0.2%, and Germany's DAX +0.3%. Elsewhere, Italy's MIB +0.4% and Spain's IBEX +0.5%.
Economic data was scarce:
Italy's industrial production increased 1.4% year-over-year (0.1% expected, -0.4% prior).
Among news of note:
Moody's commented on Portugal, saying the next date for potential rating action regarding the country falls on May 9th.

In U.S. corporate news:

Beam (BEAM 83.50, +16.53): +24.7% after the company agreed to be acquired by Suntory Holdings for $83.50 per share.
Express (EXPR 18.00, -1.02): -5.4% after the company lowered its fourth quarter earnings guidance below analyst estimates.
F5 Networks (FFIV 90.03, +1.51): +1.7% following a William Blair upgrade to 'Outperform' from 'Market Perform.'
Lululemon (LULU 52.12, -7.48): -12.6% after the company lowered its earnings and revenue guidance below consensus.
Sodastream (SODA 42.00, -7.89): -15.8% after lowering its fiscal year 2013 guidance.
Wendy's (WEN 9.30, +0.86): +10.2% following upbeat guidance.

Today's economic data will be limited to the December Treasury Budget, which will be reported at 14:00 ET.

6:46 am: [BRIEFING.COM] S&P futures vs fair value: -6.00. Nasdaq futures vs fair value: -12.00.

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S&P 500 Falls Most Since November Amid Valuation Concern

By Callie Bost Jan 13, 2014 4:50 PM ET

U.S. stocks fell, sending the Standard & Poor’s 500 Index to its biggest loss in two months, amid concern over valuations after benchmark indexes rallied to all-time highs in 2013.

Companies from Microsoft Corp. to Nike Inc. and Walt Disney Co. dropped more than 2 percent, with all 10 main industries in the S&P 500 (SPX) declining. Lululemon Athletica Inc. slumped 17 percent after the sportswear maker lowered its profit and sales forecast. Intercept Pharmaceuticals Inc. plunged 18 percent after the stock soared sixfold last week. Beam Inc. jumped 25 percent after Suntory Holdings Ltd. said it will acquire the spirits maker in a $16 billion deal.

The S&P 500 fell 1.3 percent to 1,819.20, the lowest level since Dec. 20, at 4 p.m. in New York. Some 464 companies in the S&P 500 declined today, the most since Aug. 27, data compiled by Bloomberg show. The Dow Jones Industrial Average (INDU) lost 179.11 points, or 1.1 percent, to 16,257.94, for the biggest drop since September. About 7.2 billion shares changed hands on U.S. exchanges, the most since Dec. 20.

“Sentiment is extremely optimistic and that’s a negative for stocks,” Bruce Bittles, chief investment strategist at RW Baird & Co., said by phone from Sarasota, Florida. His firm oversees $105 billion. “That means for the short term they’re fully invested. Stocks have entered the new year overbought and over-believed and until we digest that, we’re likely to stay in this range.”

The S&P 500 has dropped 1.58 percent so far in 2014, the worst start to a year since 2009, according to data compiled by Bloomberg. The index ended last year at a record, having climbed 30 percent for its biggest annual rally since 1997.

‘Lofty’ Valuations

Valuation for the S&P 500 is “lofty by almost any measure,” Goldman Sachs analysts wrote in a note Jan. 10. Further price-to-earnings expansion will be difficult to achieve, according to the note.

The benchmark index trades at 15.4 times the estimated earnings of its members, more than the average multiple of 14.1 over the last five years, data compiled by Bloomberg show. The gauge ended 2013 at its highest valuation since the end of 2009.

“The way to think about the market is the level of earnings and the multiple which should be applied to that earnings growth,” David Kostin, chief U.S. equity strategist at Goldman Sachs, said today on Bloomberg Television. “Those really are the fundamental drivers of the level of U.S. equity markets this year.”

JPMorgan Chase & Co., Bank of America Corp., Goldman Sachs, and Citigroup Inc. are among 29 members of the S&P 500 to report quarterly results this week. Earnings for companies in the index probably climbed 4.9 percent on average in the fourth quarter, while sales increased 1.8 percent, according to analyst estimates compiled by Bloomberg.

Fed Comments

Stocks extended declines today after Federal Reserve Bank of Atlanta President Dennis Lockhart said the U.S. economy is on “solid footing” and he would support continued cuts to stimulus.

Three rounds of monetary stimulus from the Fed have helped push the S&P 500 higher by 169 percent from a 12-year low in 2009. The Fed, which next meets Jan. 28-29, last month announced a reduction in its monthly bond-buying program, citing a recovery in the labor market.

The S&P 500 increased on Jan. 10 after a report from the Labor Department showed employment rose in December at the slowest pace in almost three years. The data ended months of improving job growth that had signaled the world’s largest economy was picking up.

“It sounds as if the Fed is staying on its course of tapering,” John Carey, a fund manager at Boston-based Pioneer Investment Management Inc., said in a telephone interview. His firm manages about $220 billion worldwide. “Whatever mixed signals could have come from the jobs numbers, they’re looking at the overall picture.”

Volatility Index

The Chicago Board Options Exchange Volatility Index, which measures expected swings on the S&P 500 using options prices, rose 9.4 percent, the most in a month, to 13.28. The gauge fell 12 percent last week to its lowest level since Aug. 5.

The Morgan Stanley Cyclical Index and the Dow Jones Transportation Average each fell 1.4 percent. Microsoft decreased 2.9 percent to $34.98, while Disney tumbled 2.8 percent to $73.27 for the largest declines in the Dow industrial average. Nike fell 2.3 percent to $75.18 and Exxon Mobil Corp. slid 2 percent to $98.55.

The KBW Bank Index slumped 1.3 percent as Bank of America dropped 2 percent, the most since October, to $16.43 and Citigroup slipped 1.8 percent to $53.72. Homebuilders in the S&P erased 2.5 percent as PulteGroup Inc. lost 3.8 percent to $19.40 and D.R. Horton Inc. decreased 2.7 percent to $21.55.

Retailers Slump

All 10 main industries in the S&P 500 retreated. Consumer-discretionary companies and energy producers fell more than 1.9 percent. Kohl’s Corp. plunged 6.2 percent to $53.46 and Michael Kors Holdings Ltd. slipped 3.9 percent to $76.67. Gap Inc. dropped 4 percent to $38.25.

Lululemon slumped 17 percent to $49.70, the lowest level in two years. The yogawear retailer cut its revenue and earnings forecast for its fourth quarter ending Feb. 2. Lululemon joins retailers from L Brands Inc. to Family Dollar Stores Inc. that have cut forecasts this month in the wake of a margin-eating price war this holiday season.

Vancouver-based Lululemon has been trying to win back customers after being forced to recall pants last year for being too sheer and has struggled to overcome supply-chain delays as it expands overseas and fends off growing competition.

Intercept Drops

Intercept plunged 18 percent to $364.36. Chief Executive Officer Mark Pruzanski said he may need the help of a larger drugmaker to bring the company’s experimental liver-disease treatment to market. The stock soared 545 percent last week after a trial of the drug worked well enough for the testing to be stopped.

Symantec Corp. fell 5.4 percent to $22.20 after Morgan Stanley lowered its rating on the stock to underweight from equal weight. The brokerage predicted that revenue would rebound more slowly as Symantec reorganizes its sales force, potentially limiting its profitability.

Beam jumped 25 percent to $83.42, an all-time high. Osaka-based Suntory, the maker of Yamazaki whiskey and the Premium Malt’s beer, is seeking to boost overseas growth by gaining brands such as Maker’s Mark whiskey, Jim Beam and Canadian Club liquor.

Suntory will pay $83.50 per share in cash and take over all of Beam’s outstanding debt, according to a joint statement. The companies said they expect to complete the deal by the end of June. The deal, once completed, will create the world’s third-largest premium spirits company.

Juniper Jumps

Juniper Networks Inc. climbed 7.6 percent to $25.32, the highest level since July 2011. The maker of computer-networking equipment has been targeted by activist hedge fund Elliott Management Corp., run by billionaire Paul Singer, which will seek cost cuts, stock buybacks and other changes, two people familiar with the matter said.

Elliott is seeking talks with management and the company’s board, the people said.

Merck & Co. (MRK) was the only company in the Dow to rise today, surging 6.5 percent to $53.12, the highest level in six years. The second-largest U.S. pharmaceuticals said it will seek early approval of a new cancer treatment and decide the future of the company’s animal health and consumer businesses this year.

Twitter Inc. rose 1.4 percent to $57.82. Goldman Sachs analyst Heath Terry raised the stock’s price target to $65 a share from $46, citing Twitter’s “significant acceleration” in innovation during the fourth quarter.

Twitter has seen five trading sessions of declines, falling 17 percent last week as the microblogging service was hit with analyst downgrades and Cowen & Co. initiating coverage of the stock with the equivalent of a sell rating.

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

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