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 Post subject: January 28th Tuesday Trade Results - Profit $730.00
PostPosted: Wed Jan 29, 2014 12:00 am 
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Joined: Sat Jan 10, 2009 1:06 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
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
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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 @ $730.00 dollars or +7.30 points, Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($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 @ $730.00 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=126&t=1707

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 markets...info 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 or you do not document (journal) your own thoughts from trade to trade...the chat room will not be useful to you. Chat room access instructions @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

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 (answering your questions) prior to purchasing the Volatility Trading Report (VTR).

Image Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=229&t=2165

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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.

Dow Snaps Five Day Losing Streak

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

NEW YORK (CNNMoney)
Stocks bounced back Tuesday as emerging market turmoil eased and investors sifted through the latest earnings reports.

The Dow gained 90 points, while the S&P 500 and Nasdaq also got a bump.

The win snapped a five-day losing streak for the Dow.

It's been a rough month for investors. All three major indexes have bounced around over the past few weeks and are down slightly for the month.

But investors regained some confidence Tuesday as the flight from emerging markets slowed and the currencies of some troubled economies stabilized.

Investors also geared up for the Federal Reserve's policy announcement Wednesday afternoon.

In economic news, the Case-Shiller 20-city home price index rose slightly, signaling that the housing market remains strong but is showing signs of topping out.

Investors will also keep tabs on President Obama's fifth State of the Union address Tuesday evening. The economy has been issue No. 1 for the president but that hasn't always translated into good news for many Americans.

* Obama's economy in 17 charts

Earnings season is in full swing: Shares of Apple (AAPL, Fortune 500), a prominent member of CNNMoney's Tech 30 Index, tumbled 8% after the tech giant reported weaker-than-expected fourth quarter iPhone sales.

The stock couldn't break out of its rut even after activist investor Carl Icahn said he bought another $500 million worth of shares, on top of the $1 billion he bought last week. Icahn has waged a public campaign advocating that Apple return cash to shareholders through a stock buyback.

"$AAPL normally after an icahn tweet the stock jumps..this time the mkt said so what," said StockTwits trader Nodrog1.

"$AAPL Forward guidance trumps Icahn today," argued Riverwalk, alluding to the company's conservative outlook for the current quarter.

In sunnier tech news, Netflix (NFLX) shares got a boost after a report surfaced claiming the company plans to expand to Europe.

Abercrombie & Fitch (ANF) soared almost 5% after the retailer announced it was separating its chairman and CEO roles and doing away with its shareholder rights plan, or so-called poison pill. The latter move would make it easier for the company to sell itself.

Pfizer (PFE, Fortune 500) popped after the drugmaker reported better-than-expected earnings, though sales fell short of estimates.

Ford (F, Fortune 500) shares finished flat after initially rising when the automaker topped earnings forecasts and said it would pay record profit sharing to its UAW members.

"$F...This is how you run a company," said Berbacharat on StockTwits, adding that he was impressed with the company's dividend and investor relations.

American Airlines Group (AAL), the child of the recently completed merger between American Airlines and U.S. Airways, reported a fourth-quarter profit that beat estimates.

Shares surged almost 6% Tuesday.

"$AAL...Airlines are no brainer for 2014," said StockTwits user Carpathian, referring to the fact that airlines stocks are on a tear.

Yahoo (YHOO, Fortune 500) jumped in 5% in after-hours trading after its earnings beat analysts' estimates, though revenue was in line with expectations.

Emerging markets turmoil eases: Emerging markets have returned to center stage over the past few days as protests and wild currency fluctuations led to a sweeping sell-off.

Turkey's central bank will hold an emergency meeting Tuesday afternoon in an effort to halt the lira's steep decline. And India surprised investors with a rate hike to combat rising prices.

* Is this an emerging markets crisis?

The turmoil has been sparked, in part, by the Fed's plans to reign in the flow of cheap money. Investors expect the Fed to announce a further cut to its bond-buying program Wednesday, which could prompt a withdrawal of cash from vulnerable emerging markets.

But some analysts argue the problems in emerging markets can't be blamed on the Fed.

Michael Shaoul, CEO of Marketfield Asset Management, which oversees more than $20 billion, blames years of poor economic policy, mixed with unstable and sometimes corrupt local governments.

He notes that interest rates have gone down in recent weeks, despite the Fed's December announcement about cutting the size of its monthly bond purchase program.

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4:15 pm: [BRIEFING.COM] The stock market halted its three-day slide on Tuesday as the S&P 500 gained 0.6%. The tech-heavy Nasdaq (+0.4%) also finished in the green, but couldn't keep pace with the S&P 500 as Apple (AAPL 506.50, -44.00) weighed following its quarterly report.

Although the largest tech company beat on earnings and revenue, investors were not pleased by below-consensus iPhone sales. In addition, disappointing guidance for the second quarter also factored into the stock's 8.0% loss.

The remainder of the technology sector (-0.7%) was a bit more mixed as large-cap names like Google (GOOG 1123.01, +21.78), Oracle (ORCL 37.10, +0.61), and Intel (INTC 24.90, +0.18) posted solid gains while Seagate (STX 51.52, -6.53) tumbled 11.3% after missing earnings estimates.

Outside of technology, most other cyclical groups finished ahead of the broader market. Financials (+1.3%) ended in the lead while the materials (+0.5%) sector was the only cyclical underperformer. U.S. Steel (X 25.34, -0.11) lost 0.4% after reporting mixed earnings.

Elsewhere, the discretionary sector advanced 0.8% with help from homebuilders after DR Horton (DHI 23.00, +2.06) reported better-than-expected results. The stock surged 9.8% while the broader iShares Dow Jones US Home Construction ETF (ITB 24.52, +0.90) jumped 3.8%.

Also of note, the industrial sector (+0.9%) rallied as transports provided support. The Dow Jones Transportation Average gained 1.1%, finishing just above its 50-day moving average.

On the countercyclical side, consumer staples (+0.7%) and health care (+1.3%) took part in the broad rally while telecom services (UNCH) and utilities (+0.4%) lagged.

Treasuries ended little changed despite showing early losses. The benchmark 10-yr yield settled at 2.75%.

Participation was well below average as only 609 million shares changed hands at the NYSE. So far in January, only six sessions have generated above-average volume with five taking place on days when the market ended lower.

Today's economic data included three reports.

Durable goods orders fell 4.3% in December after increasing a downwardly revised 2.6% (from 3.4%). The Briefing.com consensus expected durable goods orders to increase 2.1%. Boeing (BA 137.09, -0.27) reported solid aircraft orders in December, and that was expected to carry overall durable goods orders higher for the month. Yet, the official Census data showed aircraft orders, defense and nondefense, down 16.7%. A large portion of the decline was due to seasonal adjustments that naturally occur in December. Excluding transportation, durable goods orders fell 1.6% which was well below the 0.6% gain expected by the consensus. These orders were revised down from an originally reported 1.2% gain in November to a 0.1% increase.
The November Case-Shiller 20-city Home Price Index rose 13.6% while a 13.8% increase had been expected by the Briefing.com consensus. This followed the previous month's increase of 13.6%.
The January Conference Board's Consumer Confidence Index increased to 80.7 from a downwardly revised 77.5 (from 78.1) in December. The Briefing.com consensus pegged the Consumer Confidence Index at 77.5. The strengthening in consumer confidence stands in contrast to what the preliminary reading for the January University of Michigan Consumer Sentiment Index showed. That index dropped on weakness in the labor market, increased volatility in equity prices, and higher gasoline prices.

Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET while the FOMC will release its latest policy directive at 14:00 ET.

Nasdaq Composite -1.9% YTD
Russell 2000 -2.1% YTD
S&P 500 -3.0% YTD
Dow Jones Industrial Average -3.9% YTD

3:30 pm: [BRIEFING.COM]

Crude oil rose alongside the broader market today, lifting from a session low of $96.21 per barrel set at pit trade open. Prices advanced to a session high of $97.66 per barrel by late morning action and traded in a consolidative fashion slightly below that level for the remainder of floor trade. The energy component eventually settled with a 1.7% gain at $97.43 per barrel.
Mar natural gas also rose today on weather forecasts calling for colder-than-average temperatures. It brushed a session high of $4.95 per MMBtu in late afternoon floor action after trading as low as $4.75 per MMBtu earlier in the session. It settled with a solid 5.8% gain at $4.94 per MMBtu.
Precious metals traded lower ahead of tomorrow's FOMC announcement.
The FOMC began a two-day meeting, the final under Ben Bernanke, with most expecting the Committee to trim the Fed's monthly asset purchases to $65 bln from the current $75 bln.
Mar gold dipped to a session low of $1248.20 per ounce in morning action and eventually settled with a 1.0% loss at $1250.50 per ounce.
Mar silver pulled back from its session high of $19.78 per ounce set in early morning floor trade. It brushed a session low of $19.45 per ounce and settled at $19.50 per ounce, booking a loss of 1.5%.

3:00 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.6% with one hour remaining in today's session. Market breadth remains decidedly bullish into the final hour as advancing issues at the NYSE outpace decliners by a 2.6:1 ratio. Meanwhile, at the Nasdaq, there are roughly two advancers for each name trading lower.

Strikingly, today's rebound has not invited as much participation as the selling of the past three days. At this time, only a shade over 355 million shares have changed hands at the NYSE versus a 200-day average of 718 million. Interestingly, out of the six January sessions that generated above-average volume, five took place on days when the market ended lower.

2:35 pm: [BRIEFING.COM] The S&P 500 hovers roughly two points below its session high as the quiet afternoon continues. Shortly after today's closing bell, participants will receive about 40 quarterly reports with AT&T (T 33.73, +0.22) headlining the list. The Capital IQ consensus expects the telecom giant to report a 13.6% growth in earnings on $33.09 billion in revenue.

Today's other noteworthy reports will come from Amgen (AMGN 119.82, +1.30), VMware (VMW 95.15, +2.04), and Yahoo! (YHOO 37.76, +1.11) while tomorrow morning will feature Dow Chemical (DOW 42.90, -0.20), Marathon Petroleum (MPC 83.12, -0.38), and Phillips 66 (PSX 75.23, +0.33).

2:00 pm: [BRIEFING.COM] Equities remain near their recent levels with the S&P 500 trading higher by 0.5%.

Although the sharp losses registered over the past three sessions were broad-based, the Dow Jones Transportation Average caught the attention of many as the bellwether complex plunged from its January high to a fresh low for the month. The index held up well on Thursday, adding 0.3%, but then tumbled 4.9% over the next two sessions. Today, the Transportation Average trades higher by 0.9% as it attempts to reclaim its 50-day moving average (7270).

Meanwhile, the broader industrial sector continues to trade ahead of the S&P 500 with a gain of 0.7%.

1:30 pm: [BRIEFING.COM] There have been attempts today to shake the market free of its gains, but thus far the market has shown some moxie in the face of those efforts and has stood its ground in positive territory throughout today's trading.

Strength in the heavily-weighted financial (+1.3%) and health care (+1.3%) sectors has played a big part in the market managing to stand its ground. Actually, though, it is garnering ample support in today's move as every sector, with the exception of the technology sector (-0.9%), is moving higher. Apple (AAPL 508.60, -41.90) of course is the big drag on the tech sector.

Shifting gears, the $32 bln 2-yr note auction at the top of the hour drew a high yield of 0.38% on a bid-to-cover ratio of 3.30 that was just shy of the 12-auction average of 3.34. Direct bidders received 22.3% of the supply while indirect bidders saw a stronger than usual takedown of 28.4% (12-auction average 23.8%). The Treasury market was little changed in the wake of the results.

1:00 pm: [BRIEFING.COM] At midday, the Dow Jones Industrial Average (+0.5%) and S&P 500 (+0.5%) hold solid gains while the Nasdaq sits right below its flat line.

The tech-heavy index has not been able to rally alongside its peers as Apple (AAPL 509.74, -40.76) weighs. The top index component has tumbled 7.4% after below-consensus iPhone sales and cautious guidance overshadowed its earnings beat. Due to the Apple's sharp loss, the technology sector (-1.0%) is the only group trading in the red at this juncture.

Most of the remaining nine groups outperform while utilities (+0.3%) and telecom services (+0.3%) lag.

Notably, health care, financials, and discretionary shares are up between 0.5% and 1.1% with financials in the lead. Meanwhile, the discretionary sector is drawing strength from homebuilders after DR Horton (DHI 22.95, +2.01) reported better-than-expected results. The stock trades higher by 9.6% while the broader iShares Dow Jones US Home Construction ETF (ITB 24.38, +0.76) trades up 3.2%.

Also of note, the health care (+1.1%) sector owes a significant portion of its gains to biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 243.30, +4.70) trades higher by 2.0%. Furthermore, Pfizer (PFE 30.35, +0.69) has also provided support as the stock displays an advance of 2.4% in reaction to better-than-expected earnings.

Treasuries are little changed with the 10-yr yield at 2.76%.

Today's economic data included three reports.

Durable goods orders fell 4.3% in December after increasing a downwardly revised 2.6% (from 3.4%). The Briefing.com consensus expected durable goods orders to increase 2.1%. Boeing (BA 137.08, -0.29) reported solid aircraft orders in December, and that was expected to carry overall durable goods orders higher for the month. Yet, the official Census data showed aircraft orders, defense and nondefense, down 16.7%. A large portion of the decline was due to seasonal adjustments that naturally occur in December. Excluding transportation, durable goods orders fell 1.6% which was well below the 0.6% gain expected by the consensus. These orders were revised down from an originally reported 1.2% gain in November to a 0.1% increase.
The November Case-Shiller 20-city Home Price Index rose 13.6% while a 13.8% increase had been expected by the Briefing.com consensus. This followed the previous month's increase of 13.6%.
The January Conference Board's Consumer Confidence Index increased to 80.7 from a downwardly revised 77.5 (from 78.1) in December. The Briefing.com consensus pegged the Consumer Confidence Index at 77.5. The strengthening in consumer confidence stands in contrast to what the preliminary reading for the January University of Michigan Consumer Sentiment Index showed. That index dropped on weakness in the labor market, increased volatility in equity prices, and higher gasoline prices.

12:30 pm: [BRIEFING.COM] The S&P 500 (+0.4%) has inched back into the middle of its range after notching early afternoon lows in the 1784 area. Meanwhile, the Nasdaq (-0.1%) has yet to return into positive territory as the underperformance of Apple (AAPL 507.07, -43.43) keeps a lid on the index.

Elsewhere, the Dow Jones Industrial Average trades in-line with the S&P 500 as 23 of its 30 components register gains. Pfizer (PFE 30.39, +0.73) leads with a 2.5% increase following its strong earnings report while DuPont (DD 59.80, -0.44) is lower by 0.7% in reaction to its bottom-line beat on in-line revenue. The company authorized a $5 billion share buyback, but guided fiscal year 2014 revenue below consensus. Thanks to today's advance, the Dow is now higher by 0.2% this week.

12:00 pm: [BRIEFING.COM] Equity indices have continued their retreat and the Nasdaq (-0.1%) now trades roughly 20 points above its session low. Similarly, the S&P 500 (+0.2%) now hovers just nine points above its worst level of the day. Although the first two hours of action set the expectations for a continuation of the morning rally, the S&P 500 reversed after being unable to clear its first-hour high in the 1793 area.

At this juncture, heavily-weighted financials (+1.0%) and health care (+0.8%) continue to provide support while the discretionary sector (+0.5%) has retreated from its session high. Homebuilders remain strong after DR Horton (DHI 22.81, +1.87) reported a bottom-line beat while another large sector component, Ford (F 15.74, +0.03), trades little changed following its three-cent beat.

11:30 am: [BRIEFING.COM] Recent action saw the S&P 500 (+0.4%) slip from its best level of the day while the Nasdaq retreated to its flat line. The tech-heavy index was pressured back to its unchanged level as the technology sector (-1.0%) took a few steps back from its rebound high.

Outside of technology, other top-weighted sectors continue to hold up well with consumer discretionary (+0.6%), financials (+1.1%), and health care (+1.0%) all trading ahead of the broader market. The three bear watching into the afternoon as the trio accounts for roughly 40% of the entire S&P 500.

Elsewhere, Treasuries remain little changed with the 10-yr yield at 2.76%.

11:00 am: [BRIEFING.COM] The major averages hover near their best levels of the session with the small-cap Russell 2000 (+0.8%) in the lead. Elsewhere, the Nasdaq trades higher by 0.3% after erasing its opening decline.

Even though the Nasdaq has climbed off its opening low, its largest component, Apple (AAPL 512.00, -38.50), continues to display relative weakness. Meanwhile, the broader tech sector (-0.7%) has only retraced about a third of its decline as large components trade mixed. Google (GOOG 1121.05, +19.82) and Microsoft (MSFT 36.12, +0.09) hold respective gains of 1.8% and 0.2% while Cisco Systems (CSCO 21.89, -0.11) and IBM (IBM 177.26, -0.63) display losses close to 0.5% apiece.

Outside of technology, most other cyclical groups are taking part in the rebound. Consumer discretionary (+0.9%), financials (+1.3%), and industrials (+0.9%) outperform while energy (+0.4%) lags.

10:30 am: [BRIEFING.COM]

Commodities are mostly mixed this morning with energy commodities higher and metals
Precious metals sold off this morning, leaving gold and silver near lows for the day.
Feb gold is now -1% at $1251/oz, Mar silver is -1.4% at $19.51/oz
Crude oil futures rallied and rose as high as $97.58/barrel. In current trade, crude remains just under its session high and is now +1.9% at $97.45/barrel
Natural gas futures have been in positive territory all day so far and are now 2.6% at $4.80/MMBtu.

10:00 am: [BRIEFING.COM] The major averages have climbed to their highs with the Dow Jones Industrial Average (+0.6%) in the lead. The Nasdaq has been able to overcome its opening loss and now trades higher by 0.2%.

Just released, the consumer confidence reading for January came in at 80.7 while economists polled by Briefing.com expected the survey to come in at 77.5. This follows the prior month's revised reading of 77.5 (from 78.1).

9:40 am: [BRIEFING.COM] As expected, equity indices opened the trading day on a mixed note. The S&P 500 trades higher by 0.3% while the underperformance of Apple (AAPL 509.24, -41.26) weighs on the Nasdaq (-0.1%).

With Apple trading lower by 7.6%, the technology sector (-1.0%) trails the remaining groups. Outside of technology, only telecom services (-0.2%) trade in the red while the other sectors sport gains between 0.1% (energy) and 0.9% (health care).

Treasuries continue to trade little changed with the 10-yr yield at 2.76%.

The January Consumer Confidence report will be released at 10:00 ET.

9:16 am: [BRIEFING.COM] S&P futures vs fair value: +1.00. Nasdaq futures vs fair value: -18.50. After losing 3.4% over the past three sessions, the S&P 500 is on track to register slight opening gains as corresponding index futures trade one point above fair value. Unfortunately, the same cannot be said for the Nasdaq, which trades 19 points below fair value as Apple (AAPL 511.08, -39.42) weighs. The top index component holds a pre-market loss of 7.1% after its earnings beat was overshadowed by disappointing iPhone sales and cautious guidance.

Futures on the S&P were able to escape Apple's influence thanks to better-than-expected results from influential names like DR Horton (DHI 21.60, +0.66), DuPont (DD 60.72, +0.48), Ford (F 16.00, +0.29), and Pfizer (PFE 30.25, +0.59). However, the S&P 500 futures could not avoid taking a hit after December durable orders fell 4.3%, missing expectations. The report was disappointing on nearly all fronts as just about every category registered a decline.

Treasuries surged off their lows in reaction to the data. The 10-yr yield is now little changed at 2.76%.

More data remains on today's schedule with the January Consumer Confidence report set for a 10:00 ET release.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: +5.60. Nasdaq futures vs fair value: -11.30. The S&P 500 futures trade roughly six points above fair value.

Markets across Asia ended mostly lower amid a rather subdued session. China's SHIBOR continued to climb with the two-week rate surging 71.5bps to 6.807%. Elsewhere, the Reserve Bank of India surprised, hiking its repo rate 25 basis points to 8.00% (7.75% expected).

Economic data was limited as Japan's Corporate Services Price Index rose 1.3% year-over-year (1.1% forecast, 1.2% prior), Australia's CB Leading Index ticked up 0.2% month-over-month (0.5% previous), and NAB Business Confidence held at 6.

Japan's Nikkei edged lower by 0.2% in a quiet trade. Sony lost 2.7% after seeing its rating cut to junk at Moody's.
Hong Kong's Hang Seng shed 0.1%. Lenovo continued to whipsaw traders, surging 5.9%. Hang Lung Properties led to the downside, off 2.8%.
China's Shanghai Composite ticked up 0.3% as the People's Bank of China injected more liquidity. Shanxi Coal was the standout, surging 14% on its first trading day.

Major European indices have retreated from their best levels of the session. Spain's IBEX (+0.9%) leads while Great Britain's FTSE (+0.2%) lags for the second day in a row.

Investors received several data points. Great Britain's GDP rose 0.7% quarter-over-quarter (0.8% last) while the year-over-year reading increased 2.8% (1.9% prior). Both figures met expectations. Separately, Index of Services rose 0.8% (0.7% expected, 0.8% prior). Elsewhere, Germany's Import Price Index was unchanged month-over-month (0.2% consensus, 0.1% last), French Consumer Confidence ticked up to 86 from 85 (85 expected), and Italian Consumer Confidence rose to 98.0 from 96.4 (97.0 consensus) while wage inflation was unchanged month-over-month (0.0% prior).

Among news, Standard & Poor's commented on the eurozone, saying the region has not made much progress in delinking sovereigns from vulnerable banks.

Great Britain's FTSE is higher by 0.2%. Financials are among the leaders while industrials and energy companies lag. Aberdeen Asset Management, Hargreaves Lansdown, and Lloyds Banking Group are up between 2.6% and 3.5%. On the downside, BG Group and Petrofac are both down near 1.0%.
Germany's DAX holds an advance of 0.2% as exporters display strength. BMW, Daimler, and Volkswagen are all up between 0.8% and 1.2%. Chemical company K+S is the weakest component, down 2.1%.
In France, the CAC trades up 0.3%. Steelmaker ArcelorMittal leads with a gain of 3.3% while financials outperform as well. BNP Paribas, Credit Agricole, and Societe Generale are up between 1.1% and 2.0%.
Spain's IBEX is higher by 0.9% with support from banks. Bankia and CaixaBank hold gains close to 4.2% apiece.

In domestic economic news, the November Case-Shiller 20-city Home Price Index rose 13.7% while a 13.8% increase had been expected by the Briefing.com consensus. This follows the previous month's increase of 13.6%.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: +2.30. Nasdaq futures vs fair value: -19.00. The S&P 500 futures (+2 pts versus fair value) have slid to lows following the worse-than-expected durable orders report.

December durable goods orders fell 4.3%, which was worse than the 2.1% increase expected among economists polled by Briefing.com. This comes after the prior month's revised reading reflected an increase of 2.6% (from +3.4%). Excluding transportation, durable orders fell 1.6% (consensus +0.6%) to follow the prior month's revised uptick of 0.1% (from +1.2%).

8:02 am: [BRIEFING.COM] S&P futures vs fair value: +5.20. Nasdaq futures vs fair value: -13.80. U.S. equity futures trade in mixed fashion amid upbeat overseas action. The S&P 500 futures trade five points above fair value while Nasdaq futures hover nearly 14 points below fair value as Apple (AAPL 512.31, -38.19) weighs. The largest tech stock sports a pre-market loss of 6.9% after reporting its quarterly results. Although the company beat on earnings and revenue, the report was overshadowed by below-consensus iPhone sales and cautious second-quarter guidance.

Reviewing overnight developments:

Asian markets ended mixed. China's Shanghai Composite +0.3%, Hong Kong's Hang Seng -0.1%, and Japan's Nikkei -0.2%.
Economic data was limited:
Japan's Corporate Services Price Index rose 1.3% year-over-year (1.1% forecast, 1.2% prior).
South Korea's manufacturing BSI Index held unchanged at 84.00.
Australia's CB Leading Index ticked up 0.2% month-over-month (0.5% prior) while NAB Business Confidence held steady at 6. In addition, NAB Business Survey rose to 4.0 from -3.0.
The Reserve Bank of India hiked its key interest rate 25 basis points to 8.00% (7.75% expected, 7.75% prior).
In news:
Money market rates in China were on the rise even as the People's Bank of China conducted reverse repurchase operations for the third day in a row. Most notable was the 2-week SHIBOR, which climbed 71.5 basis points to 6.807%.

Major European indices hover at their best levels of the session. Great Britain's FTSE +0.3%, Germany's DAX +0.3%, and France's CAC +0.6%. Elsewhere, Italy's MIB +0.6% and Spain's IBEX +1.1%.
Investors received several data points:
Great Britain's GDP rose 0.7% quarter-over-quarter (0.8% last) while the year-over-year reading increased 2.8% (1.9% prior). Both figures met expectations. Separately, Index of Services rose 0.8% (0.7% expected, 0.8% prior).
Germany's Import Price Index was unchanged month-over-month (0.2% consensus, 0.1% last).
French Consumer Confidence ticked up to 86 from 85 (85 expected).
Italian Consumer Confidence rose to 98.0 from 96.4 (97.0 consensus) while wage inflation was unchanged month-over-month (0.0% prior).
Among news:
Standard & Poor's commented on the eurozone, saying the region has not made much progress in delinking sovereigns from vulnerable banks.

In U.S. corporate news:

Corning (GLW 17.85, -0.37): -2.0% despite beating on earnings and revenue.
DR Horton (DHI 21.98, +1.04): +5.0% after beating earnings estimates by seven cents on above-consensus revenue.
DuPont (DD 61.30, +1.06): +1.8% following its bottom-line beat on in-line revenue. The company authorized a $5 billion share buyback and guided fiscal year 2014 revenue below consensus.
Comcast (CMCSA 54.00, +1.51): +2.9% after reporting mixed results. The company missed bottom-line estimates while beating revenue expectations.
Ford (F 16.09, +0.38): +2.5% after reporting a three-cent beat.
Pfizer (PFE 30.46, +0.80): +2.7% after beating earnings estimates by three cents on better-than-expected revenue.
Seagate (STX 55.00, -3.05): -5.3% following a bottom-line miss.
U.S. Steel (X 25.80, +0.35): +1.4% after beating earnings expectations by 52 cents.

December Durable Orders will be released at 8:30 ET while the November Case-Shiller 20-city Index and January Consumer Confidence will cross the wires at 9:00 ET and 10:00 ET, respectively.

6:28 am: [BRIEFING.COM] S&P futures vs fair value: +8.00. Nasdaq futures vs fair value: -10.00.

6:28 am: [BRIEFING.COM] Nikkei...14980.16...-25.60...-0.20%. Hang Seng...21960.64...-15.50...-0.10%.

6:28 am: [BRIEFING.COM] FTSE...6578.28...+28.00...+0.40%. DAX...9414.87...+65.70...+0.70%.

U.S. Stocks Rise on Earnings as Consumer Confidence Gains

By Lu Wang and Whitney Kisling Jan 28, 2014 4:40 PM ET

U.S. stocks rose, with the Standard & Poor’s 500 Index rebounding from its worst slump since June, as earnings at companies from Pfizer Inc. to D.R. Horton Inc. topped estimates and consumer confidence increased ahead of a Federal Reserve policy meeting.

Pfizer, the world’s biggest drugmaker, advanced 2.6 percent after earnings beat estimates as it cut costs and saw its tax rate fall. An index of homebuilders surged 5.3 percent as D.R. Horton jumped 9.8 percent and a report showed home prices climbed. American International Group Inc. rose 2.5 percent after Bank of America Corp. said it expects the insurer to buy back $10 billion of stock during the next two years. Apple Inc. tumbled 8 percent as iPhone sales trailed estimates.

The S&P 500 (SPX) rose 0.6 percent to 1,792.50 at 4 p.m. in New York. The Dow Jones Industrial Average climbed 90.68 points, or 0.6 percent, to 15,928.56. About 6.6 billion shares changed hands on U.S. exchanges, 6.8 percent more than the three-month average.

“Earnings looked pretty good,” Dan Veru, the chief investment officer who helps oversee $4.5 billion at Palisade Capital Management LLC, said by phone from Fort Lee, New Jersey. “The economy is in the process of being self-reinforcing and it can handle the modest amount of tapering we’re planning to do.”

U.S. equities joined a global rebound as European shares recovered from their biggest three-day decline in seven months while the MSCI Emerging Markets Index rose from its lowest level since August.

Three-Day Drop

The S&P 500 lost 3.4 percent in the past three days, the most since June, with emerging-market currencies sinking amid signs China’s economy is slowing. The benchmark gauge rallied 30 percent last year and is up 165 percent from a bear-market low in 2009.

Some 83 S&P 500 stocks had their 14-day relative-strength index below 30 yesterday, the most since November 2012, data compiled by Bloomberg show. RSI measures the degree to which gains and losses outpace each other, and some analysts who watch charts to predict market moves consider a reading lower than 30 as indicating the stock has fallen too far too fast.

“The ride probably will not be as smooth as we have seen in the last couple years,” Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC, which oversees $63 billion, said in phone interview from Philadelphia. “We’ve had a pretty decent pullback here in equity prices.”

Fed Meeting

The Federal Open Market Committee started its last meeting under Chairman Ben S. Bernanke today. Policy makers said in December that the central bank would begin to pare the pace of its monthly bond buying by $10 billion to $75 billion this month. The Fed will cut purchases by $10 billion at each of the next six FOMC meetings, with the program ending no later than December, according to economists in a Bloomberg News survey conducted Jan. 10.

The Conference Board’s index of consumer confidence rose to 80.7 in January from a revised 77.5 in the prior month, the New York-based private research group said today. The median forecast in a Bloomberg survey of economists called for a reading of 78.

Stock futures briefly erased early gains as a report showed orders for durable goods unexpectedly slumped in December by the most in five months, reflecting a broad-based retreat that raises the risk business investment will cool in early 2014.

Earnings Season

AT&T Inc. and Yahoo! Inc. are among S&P 500 companies reporting quarterly results today. Almost 74 percent of the 152 companies that have posted earnings this season beat analysts’ projections. Profit at S&P 500 companies probably rose 6.6 percent in the fourth quarter of 2013, and sales increased 2.3 percent, analysts’ estimates compiled by Bloomberg show.

The Chicago Board Options Exchange Volatility Index retreated for a second day, sliding 9.3 percent to 15.80. The gauge of S&P 500 options known as the VIX surged 46 percent last week, its biggest gain since May 2010.

Nine out of 10 main industries in the S&P 500 advanced, with financial and health-care stocks rising more than 1.2 percent for the biggest gains.

Pfizer advanced 2.6 percent to $30.42 after posting quarterly profit of 56 cents a share excluding some items. The average analyst estimate was for 52 cents.

An S&P index of homebuilders rallied 5.3 percent, the most since September. Home prices in 20 U.S. cities rose 13.7 percent in November from a year ago, the S&P/Case-Shiller index showed, the biggest 12-month gain since February 2006.

D.R. Horton climbed 9.8 percent, the most in the S&P 500, to $23. The largest U.S. homebuilder by revenue posted earnings that beat analyst estimates as the Fort Worth, Texas-based company raised prices and delivered more homes.

Financial Shares

AIG and T. Rowe Price Group Inc. led gains among financial shares. AIG rose 2.5 percent to $48.46 after Bank of America named the stock the top pick among property and casualty insurers for 2014. T. Rowe Price climbed 5.5 percent to $80.70 after the money manager reported fourth-quarter profit that exceeded analysts’ estimates.

Comcast Corp. (CMCSA) increased 1.6 percent to $53.35 after people familiar with the matter said the cable company is near a deal to buy assets from Charter Communications Inc. Comcast also reported a 26 percent increase in fourth-quarter profit after adding TV subscribers for the first time in more than six years.

Cliffs Natural Resources Inc., the biggest U.S. iron ore producer, advanced 2.1 percent to $19.81. Casablanca (CLF) Capital LP, which owns 5.2 percent of Cliffs, said the company’s valuation would rise to $53 if Cliffs spun off foreign assets, doubled its dividend and converted U.S. assets to a master limited partnership to “significantly cut costs.”

Oshkosh, Apple

Oshkosh (OSK) Corp., which designs and manufactures specialty trucks and other vehicles, rallied 8 percent to $55.50. The company said replacement demand and earlier orders may indicate a stronger recovery. The company boosted its 2014 earnings forecast to at least $3.40 a share, higher than the average analyst estimate of $3.35, according to data compiled by Bloomberg.

Technology shares sank 0.7 percent for the only loss among 10 S&P 500 groups. Apple slid 8 percent to $506.50, the lowest since October, after reporting that it sold 51 million iPhones in the quarter ended Dec. 28, missing analysts’ estimates for 54.7 million handsets. Apple also projected revenue in the current period may shrink from a year earlier, in what would be the first quarterly sales decline since 2003.

Adding Pressure

Stagnating growth is adding pressure for the company to release new hit products, be it a television, wearable computer or a way to pay for things with an iPhone. Billionaire activist investor Carl Icahn is betting Apple will deliver, disclosing on Twitter today that he bought another $500 million of Apple shares on top of the $3.6 billion he had as of last week.

Yahoo! Inc. dropped 2.9 percent to $37.10 as of 4:39 p.m. in New York. The company forecast after the close of regular trading first-quarter sales that fell short of some analysts’ estimates as Chief Executive Officer Marissa Mayer struggles to turn user growth at the Web portal into advertising dollars.

Seagate Technology Plc dropped 11 percent to $51.52 in regular trading. It reported second-quarter earnings of $1.32 a share excluding some items, missing the average analyst estimate of $1.39. The maker of disk drives posted sales of $3.53 billion, falling short of the projected $3.56 billion.

Corning Inc. tumbled 6.2 percent to $17.10 after projecting price declines for LCD, the display technology used in televisions and computer monitors.

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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