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 Post subject: March 7th Friday Trade Results - Profit $1690.00
PostPosted: Fri Mar 07, 2014 8:03 am 
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Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
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 @ $1,690.00 dollars or +16.90 points, Emini ES ($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 @ $1,690.00 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=128&t=1740

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=234&t=2257

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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 End Mixed After February Jobs Surprise

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

NEW YORK (CNNMoney)
Stocks ended mixed Friday, as the enthusiasm following a better-than-expected jobs report wore off.

The Dow rose 0.2%, while the S&P 500 added a single point. But that was enough to finish at another record closing high.

The Nasdaq ended in the red, as big declines in biotech stocks weighed on the index. Biogen Idec (BIIB, Fortune 500)and Vertex Pharmaceuticals (VRTX) fell about 3% each, and Gilead Sciences (GILD, Fortune 500) was also down sharply.

Biotech stocks have been one of the better performers this year but have recently begun to lose momentum. The iShares Nasdaq Biotechnology index (IBB) was down almost 1% Friday, following a nearly 3% drop on Thursday, prompting some StockTwits traders to wonder if the rally in the sector is over.

"Do people think it is normal for large cap companies like $GILD to correct this aggressively?" asked SkepticalBull. "Bubble popping. $IBB."

But others argued that this is just a dip for biotech stocks.

"$IBB Great buy opportunity here," said MarcianoLoews.

The lackluster day comes at the end of a week that started on a down note, as a political and economic crisis in Ukraine intensified and Russia troops got involved. Tensions between Ukraine and Russia continue, though many investors feel that the worst may be over. International leaders have instituted some sanctions against Russia and offered help to Ukraine as they try to resolve the situation.

With the conflict fears easing, the three major indexes all ended the week up about 1%.

Stocks are approaching the five-year anniversary of the starting point of the current bull market. While some investors worry that stocks are overdue for a pullback, bulls say there's more room to run.

* Weather maps can show why February hiring was weak

Earlier Friday, investors were encouraged by the fact that the U.S. economy added 175,000 jobs last month, an improvement from January and ahead of economists' expectations. The unemployment rate ticked up to 6.7%, from 6.6% the prior month as more Americans joined the labor force.

The pickup in hiring is a good sign given that economists and investors have been worried that weak job growth in December and January may be the start of a more sustained economic slowdown, said Jim Baird, chief investment officer at Plante Moran Financial Advisors.

The improvement also provides the Federal Reserve, which has begun scaling back, or tapering, its bond buying program by $10 billion a month, with more reasons to continue down its planned path, added Baird.

Yellen is Bernanke 2.0

As investors made bets that the Fed will taper again at its meeting later this month, they dumped Treasuries, pushing the 10-year yield up to 2.8% from 2.73% late Thursday. Bond yields and prices move in opposite directions. And rates often go higher when economic data is improving.

Aside from the jobs report, investors are also keeping tabs on the latest earnings.

Foot Locker (FL, Fortune 500) rose after the athletic apparel retailer reported stronger-than-expected results, including a 5.3% jump in same-store sales. Shares of Nike (NKE, Fortune 500) gained ground as well.

Big Lots (BIG, Fortune 500) surged after the closeout retail chain posted slightly better quarterly revenue.

Shares of Coupons.com (COUP) almost doubled on their first day of trading Friday. The online coupon company sold shares at $16 apiece in its initial public offering late Thursday, above the expected range.

Some traders said the huge run-up reminds them of the dot-com bubble.

"$COUP This is vastly overvalued now.," said Caviar. "This frenzy reminds me of 1999. Be careful."

Another trader said this kind of surge is a sign that the broader market may be near its peak.

"$SPY $COUP we must be near top," said chart_gazer. "Coupons.com IPO today up 93%, market cap +billion dollars. Insanity."

European markets and Asian markets finished the day mostly lower. But Japan's Nikkei closed with a gain of about 1%.

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3:30 pm: [BRIEFING.COM]
Related Stories

Precious metals took a tumble today as the dollar index rose on better-than-anticipated U.S. jobs data. February nonfarm payrolls surpassed estimates, coming in at 175K vs the Briefing.com consensus of 163K.
Apr gold brushed a session low of $1326.60 per ounce moments before equity markets opened and eventually settled with a 1.0% loss at $1337.80 per ounce. Today's weakness cut gains for the week to 1.2%. May silver slid to a session low of $20.75 per ounce after trading as high as $21.45 per ounce in morning pit trade. Unable to gain momentum, it settled 3.1% lower at $20.92 per ounce, booking a loss of 1.4% for the week.

May copper fell over 4% today following news that China, the largest importer of copper in the world, saw its "first" corporate bond default, with Shanghai Chaori Solar Energy unable to pay its debt in full today. After steadily trending lower since the overnight session, copper settled at $3.08 per pound, its lowest level since July 2013.

Apr crude oil, on the other hand, got a boost from the upbeat jobs report. The energy component rose from its session low of $101.81 per barrel and settled with a 1.0% gain at $102.54 per barrel, just four cents below last Friday's closing price.

April natural gas chopped around in negative territory. It brushed a session low of $4.57 per MMBtu in late afternoon pit trade and settled 0.9% lower at $4.62 per MMBtu, or unchanged for the week.

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.1% with one hour remaining in the trading day. Given its current standing, the benchmark index is on track to finish the week with a gain of 0.8%.

The Consumer Credit report for January was just released by the Federal Reserve and it showed that consumer credit increased by $13.70 billion. That was higher than the Briefing.com consensus estimate of $11.80 billion. The prior month's credit growth was revised lower to $15.90 billion from $18.80 billion.

2:30 pm: [BRIEFING.COM] Recent action saw the Dow Jones Industrial Average (-0.1%) join the Nasdaq (-0.7%) and S&P 500 (-0.2%) in the red.

The technology sector (-0.6%) has seen some additional selling with top-weighted names extending their losses. Elsewhere, financials (+0.2%) continue showing relative strength while energy and industrials have returned to their flat lines.

Even though the industrial sector is now flat, transports have not surrendered all of their gains. The Dow Jones Transportation Average trades up 0.3% after marking a fresh intraday high this morning (7627.44).

The January Consumer Credit report will be released at 15:00 ET.

2:00 pm: [BRIEFING.COM] The major averages remain mixed as afternoon action has slowed down considerably. Over the course of the past two hours, the S&P 500 (-0.1%) has been confined to a four-point range.

Sector standing remains little changed as energy (+0.2%), industrials (+0.2%), and financials (+0.3%) hover in the green while the remaining seven sectors hold losses between 0.1% and 0.6%.

Even though equity indices trade in mixed fashion, that has not fueled a rush for volatility protection. The CBOE Volatility Index (VIX 14.08, -0.13) is lower by 0.9% after seeing a slight gain earlier.

1:30 pm: [BRIEFING.COM] The overall action continues to be mixed with selling concentrated among Nasdaq-listed issues. Selling efforts thus far have been pretty orderly, suggesting today's downside is most likely a function of some profit-taking following a pretty heady run for the market this week.

On a week-to-date basis, the S&P 500 is up 0.8%. That's a healthy gain in any week, yet it belies the fact that the S&P 500 is actually up 2.2% from the low it hit on Monday as the Ukraine situation was thrust front-and-center as a geopolitical risk.

The recovery effort since then implies market participants continue to think a worst-case scenario will be averted and that this political standoff will be fought with rhetoric and not actual military force. One can only hope that is the case.

Telling in the midst of this situation is that the Treasury market hasn't exhibited any real strength since its safe-haven rally on Monday. In fact, the 10-yr note is down another 14 ticks today, pushing its yield up to 2.79% versus the cash settlement of 2.60% seen on Monday. That's a huge jump in yield in just four sessions. It might not play out well in future housing data, but it is a signpost that the market is still relatively comfortable with the Ukraine situation. That could change at any moment, but all is pretty quiet on Russia's western front for the time being.

12:55 pm: [BRIEFING.COM] At midday, the major averages trade mixed. The Dow (+0.1%) holds a slim gain while the Nasdaq (-0.4%) hovers in the red. For its part, the S&P 500 sits on its flat line.

The stock market began the trading day on a higher note, but the early strength faded quickly. The upbeat open took place after it was reported that February nonfarm payrolls surpassed estimates (175K versus Briefing.com consensus 163K). Although the headline number surprised to the upside, it suggested that the weather excuse, which has been used for just about every disappointing report this year, may have been overused.

Like yesterday, the Nasdaq led the retreat due to significant weakness in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 258.17, -2.97) is lower by 1.1% after being down nearly 3.0% shortly after the open. The underperformance of biotech has also reflected on the health care sector (-0.5%).

Although the biotech industry group has climbed off its lows, the Nasdaq has not seen a comparable snapback due to recent weakness in top-weighted technology components. Apple (AAPL 526.44, -4.31), Google (GOOG 1214.30, -5.31), Facebook (FB 70.15, -0.69), and Oracle (ORCL 38.95, -0.51) hold losses between 0.4% and 1.3%. The technology sector, meanwhile, trades down 0.4%.

Even though two of the three top-weighted groups lag, the S&P 500 has been able to hold its flat line thanks to the outperformance of industrials (+0.3%) and the continued strength of financials (+0.6%). Including the midday gain, the financial sector is higher by 3.1% this week versus a 0.9% increase for the S&P 500.

Another item at play that is likely contributing to participants reducing their risk exposure into the weekend is the continued uncertainty regarding the situation in Ukraine. Earlier, a Gazprom spokesman said the company could stop delivering natural gas to Ukraine since the country is behind on its payments. Since Gazprom is a major supplier to the entire European continent, the news weighed on regional equities, sending them to lows into the close.

Treasuries hover in the red, but they have climbed off their lows. The benchmark 10-yr yield is higher by six basis points at 2.79%.

Reviewing today's economic data:

Nonfarm payrolls added 175,000 jobs in February after adding an upwardly revised 129,000 (from 113,000) in January. The Briefing.com consensus expected an increase of 163,000. Private payrolls were a little lighter, up 162,000 in February after adding 145,000 in January. The consensus expected private payrolls to increase by 170,000. Over the last several weeks, economists have pointed toward the winter weather as the reason for the recent economic slowdown. The above consensus result in the February employment report refutes that theory. Sectors that are normally impacted by weather events, such as construction of buildings (+100), reported positive payroll gains. These sectors should have seen a sizable pullback if weather was the root cause of the economic malaise.
The U.S. trade deficit widened in January to $39.10 billion from an upwardly revised $39.00 billion (from $38.7 billion) in December. The Briefing.com consensus expected the trade deficit to fall to $37.30 billion. The goods deficit rose to $59.30 billion from $58.70 billion, a gain of $0.70 billion. The services surplus increased by $0.50 billion in January to $20.20 billion. Exports increased 0.6% in January to $192.5 billion. Almost all of the increase can be attributed to a $1.8 billion increase in exports of nonmonetary gold and a $0.2 billion increase in artwork sales.

The January Consumer Credit report will be released at 15:00 ET.

12:35 pm: [BRIEFING.COM] The S&P 500 has inched back into the green while the Nasdaq (-0.4%) remains pressured.

Biotechnology weighed on the Nasdaq at the open, but the industry group has since climbed off its lows. The iShares Nasdaq Biotechnology ETF (IBB 258.44, -2.70) is now lower by 1.0%.

Despite the rebound in biotech, several large technology names have slid to lows. Apple (AAPL 527.20, -3.55), Google (GOOG 1216.29, -3.32), Facebook (FB 70.13, -0.71), and Oracle (ORCL 39.08, -0.38) hold losses between 0.3% and 1.0%. The technology sector, meanwhile, trades down 0.3%.

12:00 pm: [BRIEFING.COM] The S&P 500 has returned to its flat line while the Russell 2000 (-0.2%) and Nasdaq (-0.5%) remain in the red. For its part, the Dow (+0.2%) continues to hold a slim gain.

Within the Dow, there are 18 names trading higher with Nike (NKE 79.42, +1.20) trading up 1.5%. Nike is the only stock showing an increase of more than 1.0% while the second best performer, ExxonMobil (XOM 94.53, +0.77), trades up 0.9%.

On the downside, Caterpillar (CAT 96.80, -0.80), General Electric (GE 26.02, -0.20), and Microsoft (MSFT 37.82, -0.32) hold losses close to 0.8% apiece.

Despite today's slight gain, the Dow remains in the red for the year. The index holds a year-to-date loss of 0.8% versus a 1.5% gain for the S&P 500.

11:30 am: [BRIEFING.COM] The S&P 500 (-0.2%) has slid to a new low in a move that was reflected across most sectors. At this juncture, the financial sector (+0.4%) continues to hold up relatively well while energy and industrials have returned to their flat lines.

On the downside, health care (-0.8%) remains at the bottom of the leaderboard while the largest S&P 500 sector-technology (-0.4%)-follows not far behind.

Also of note, the discretionary sector (-0.2%) trades in-line with the broader market amid mixed action within the group. Homebuilders lag with the iShares Dow Jones US Home Construction ETF (ITB 25.76, -0.19) trading lower by 0.8%. Retailers, meanwhile, are showing relative strength. The SPDR S&P Retail ETF (XRT 86.90, +0.51) trades up 0.6%.

11:00 am: [BRIEFING.COM] The major averages remain mixed with the Dow (+0.2%) holding a modest gain while the Nasdaq (-0.5%) and S&P 500 (-0.1%) continues trading in the red.

Biotechnology continues to be a drag on the Nasdaq, but the iShares Nasdaq Biotechnology ETF (IBB 257.64, -3.50) has climbed off its lows and now holds a loss of 1.3%. The health care sector (-0.4%), meanwhile, remains not far from its session low.

On the upside, energy (+0.3%), financials (+0.5%), and industrials (+0.3%) continue to hold gains.

Treasuries have inched off their lows, but they remain in the red with the 10-yr yield up five basis points at 2.79%.

TheStreet.com
US STOCKS SNAPSHOT-Futures trim gains after ADP data Reuters

10:30 am: [BRIEFING.COM]

Copper futures, on the other hand, have been sliding lower since the overnight session and just hit a new session low of $3.09/lb.
Since China is the largest importer of copper in the world, news that China saw its "first" corporate bond default, with Shanghai Chaori Solar Energy unable to pay its debt in full today, is likely one catalyst weighing on copper prices this morning as the default weakens confidence in the importer.
May copper futures are now -3.6% at $3.10/lb and are at a 7-month low
Gold and silver futures were just modestly lower in overnight/early morning trade, but dropped sharply following the jobs report.Apr gold is now -1.4% at $1333.30/oz and May silver is -3.2% at $20.88/oz
Natural gas futures have been in the red almost all session and are now -0.6% at $4.64/MMBtu (Apr contract)
Crude oil prices have been climbing higher and just hit a new session high of $102.67/barrel. Apr is now +0.9% at $102.45/barrel

10:00 am: [BRIEFING.COM] The Dow Jones Industrial Average (+0.3%) continues to hold a slim gain while the Nasdaq (-0.4%) and S&P 500 (unch) have slid into the red.

As mentioned in our opening update, biotechnology has exerted significant pressure on the Nasdaq. The iShares Nasdaq Biotechnology ETF (IBB 255.17, -5.97) has widened its loss to 2.3% while the health care sector has extended its decline to 0.7%. Similar to health care, technology (-0.2%) is among the laggards while another influential sector, financials, continues to hold a solid gain of 0.6%.

The financial sector deserves close attention as its current strength is helping the S&P 500 stay in the vicinity of its flat line. Should the second-largest S&P 500 group join health care and technology in the red, that would likely translate into weakness for the broader market.

9:45 am: [BRIEFING.COM] The major averages began the day with modest gains. The Dow Jones Industrial Average (+0.3%) leads while the Nasdaq (unch) trails. For its part, the S&P 500 is higher by 0.2% with six sectors showing gains.

Once again, the financial sector (+0.7%) began in the lead, which has been the case since Tuesday. Including the opening advance, the sector is now higher by 3.4% this week versus an increase of 1.3% for the S&P 500.

Meanwhile, the Nasdaq is seeing pressure from biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 260.11, -1.03) is lower by 0.4%. This has also reflected on the health care sector, which trades flat.

Treasuries sit near their lows with the 10-yr yield up six basis points at 2.79%.

9:14 am: [BRIEFING.COM] S&P futures vs fair value: +11.80. Nasdaq futures vs fair value: +6.00. The stock market is on track to begin today's session on a higher note following a better-than-expected nonfarm payrolls report for February (175K actual, 163K Briefing.com consensus). The S&P 500 futures trade 12 points above fair value with the bulk of the gain coming after the jobs report.

Over the last several weeks, economists have pointed toward the winter weather as the reason for the recent economic slowdown. The above-consensus result in the February employment report refutes that theory. Sectors that are normally impacted by weather events, such as construction of buildings (+100), reported positive payroll gains. These sectors should have seen a sizable pullback if weather was the root cause of the economic malaise.

With index futures on their highs, Treasuries hover near their lowest levels of the day. The benchmark 10-yr yield is higher by seven basis points at 2.81%.

The January Consumer Credit report will be released at 15:00 ET.

9:02 am: [BRIEFING.COM] S&P futures vs fair value: +13.40. Nasdaq futures vs fair value: +8.50. The S&P 500 futures trade 13 points above fair value following a better-than-expected nonfarm payrolls report.

Asian markets finished on a mixed note. In China, Chaori Solar failed to make its bond payment, marking the "first" domestic corporate bond default. Interestingly, SHIBOR eased significantly with the two-week reading sliding 71 basis points to 3.052%. Elsewhere, Reserve Bank of Australia Governor Glenn Stevens testified in Sydney and suggested the Australian dollar is still overvalued.

Regional data of note was limited to Japan's Leading Index, which ticked up to 112.2 from 111.7 (112.4 expected).

Japan's Nikkei gained 0.9%, climbing to its best level in five weeks. Early yen weakness provided a lift as Fanuc added 1.8% and Mazda Motor tacked on 2.7%.
Hong Kong's Hang Seng slipped 0.2% amid a choppy trade. Notable was the 4.6% gain in shares of Sinopec, which continues to be bid up ahead of a potential sale of a stake in its retail business.
China's Shanghai Composite shed 0.1%. Property developers underperformed as Gree Real Estate fell 3.8% and China Vanke edged down 0.7%.

Major European indices hover near their flat lines. Participants received several economic data points. Germany's Industrial Production rose 0.8% month-over-month (0.7% expected, 0.1% prior) while the Wholesale Price Index slipped 0.1% month-over-month (-0.2% consensus, 0.3% prior). French trade deficit widened to EUR5.70 billion from EUR5.20 billion (expected deficit of EUR4.60 billion) while the government budget deficit narrowed to EUR12.70 billion from EUR74.90 billion (expected deficit of EUR70.00 billion). Italy's PPI slipped 0.2% month-over-month (-0.1% expected, -0.1% prior) while the year-over-year reading fell 1.5% (-1.6% consensus, -1.8% previous). Swiss CPI ticked up 0.1% month-over-month (0.2% expected, -0.3% prior) while the unemployment rate held steady at 3.2%, as expected.

Among news of note, Russian President Vladimir Putin responded to yesterday's comments from President Obama, saying Russia can't ignore "calls for help" from Russian speakers living in Ukraine.

Germany's DAX is flat. Health care names outperform with Fresenius Medical Care and Merck both up near 1.0%. On the downside, Commerzbank trades lower by 0.8%.
Great Britain's FTSE trades up 0.2% with insurer Aviva in the lead. The stock is higher by 3.3%. Miners lag with Anglo American, Antofagasta, Glencore Xstrata, and Rio Tinto down between 1.9% and 2.9%.
France's CAC is higher by 0.3% with growth-sensitive names in the lead. Alstom and Technip hold respective gains of 3.1% and 2.0%. Airbus Group is among the laggards, down 2.2%.

8:35 am: [BRIEFING.COM] S&P futures vs fair value: +12.10. Nasdaq futures vs fair value: +6.00. The S&P 500 futures trade 12 points above fair value in reaction to a better-than-expected nonfarm payrolls report.

February nonfarm payrolls came in at 175,000 while the Briefing.com consensus expected a reading of 163,000. Nonfarm private payrolls added 162,000 against the 170,000 expected by the consensus. The unemployment rate rose to 6.7% while the consensus expected a reading of 6.6%.

Hourly earnings increased 0.4%, while the Briefing.com consensus expected an uptick of 0.2%. The average workweek was reported at 34.2 against the 34.4 expected by the consensus.

Separately, the January trade deficit widened to $39.10 billion from $38.80 billion. The Briefing.com consensus expected the deficit to come in at $37.30 billion.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +5.80. Nasdaq futures vs fair value: -4.50. U.S. equity futures hold modest gains despite cautious action overseas. The S&P 500 futures trade six points above fair value. Some volatility is expected around 8:30 ET when the nonfarm payrolls report for February crosses the wires. The Briefing.com consensus expects the reading to come in at 163,000.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei +0.9%, China's Shanghai Composite -0.1%, and Hong Kong's Hang Seng -0.2%.
Economic data was limited:
Japan's Leading Index ticked up to 112.2 from 111.7 (112.4 expected).
Australia's AIG Construction Index fell to 44.2 from 48.2.
In news:
In China, Shanghai Chaori Solar Energy Science & Technology failed to make its full interest payment, marking the first time a Chinese company defaulted on its domestic obligations.

Major European indices hover in the red. Great Britain's FTSE -0.2%, France's CAC -0.3%, and Germany's DAX -0.7%. Elsewhere, Italy's MIB -0.4% and Spain's IBEX -0.4%.
Participants received several economic data points:
Germany's Industrial Production rose 0.8% month-over-month (0.7% expected, 0.1% prior) while the Wholesale Price Index slipped 0.1% month-over-month (-0.2% consensus, 0.3% prior).
French trade deficit widened to EUR5.70 billion from EUR5.20 billion (expected deficit of EUR4.60 billion) while the government budget deficit narrowed to EUR12.70 billion from EUR74.90 billion (expected deficit of EUR70.00 billion).
Italy's PPI slipped 0.2% month-over-month (-0.1% expected, -0.1% prior) while the year-over-year reading fell 1.5% (-1.6% consensus, -1.8% previous).
Swiss CPI ticked up 0.1% month-over-month (0.2% expected, -0.3% prior) while the unemployment rate held steady at 3.2%, as expected.
Among news of note:
Russian President Vladimir Putin responded to yesterday's comments from President Obama, saying Russia can't ignore "calls for help" from Russian speakers living in Ukraine.

In U.S. corporate news:

Big Lots (BIG 32.75, +3.50): +12.0% after beating revenue estimates.
Foot Locker (FL 45.45, +2.72): +6.4% following its better-than-expected earnings and revenue.
Safeway (SWY 38.64, -0.83): -2.1% after announcing a merger agreement with Albertsons, per which Safeway shareholders will receive roughly $40 per share.

February nonfarm payrolls, unemployment rate, hourly earnings, average workweek, and the January trade balance will all be reported at 8:30 ET while the January Consumer Credit report will be released at 15:00 ET.

6:55 am: [BRIEFING.COM] S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: -2.00.

6:55 am: [BRIEFING.COM] Nikkei...15274.07...+139.30...+0.90%. Hang Seng...22660.49...-42.50...-0.20%.

6:55 am: [BRIEFING.COM] FTSE...6781.57...-6.90...-0.10%. DAX...9498.13...-44.70...-0.40%.

U.S. Stocks Rise as Job Gains Overshadow Ukraine Concern

By Nikolaj Gammeltoft and Callie Bost Mar 7, 2014 4:27 PM ET

U.S. stocks rose, with the Standard & Poor’s 500 Index erasing losses to close at a record, as data showing stronger-than-forecast jobs growth overshadowed concern the situation in Ukraine could worsen.

Nike Inc. rose 1.6 percent on a report the company signed quarterback Johnny Manziel to a marketing deal. Foot Locker Inc. jumped 8.8 percent after fourth-quarter adjusted profit and sales topped estimates. Safeway Inc. slid 2.2 as investors weighed potential antitrust hurdles to an offer for the company. Peabody Energy Corp. plunged 5.3 percent for the biggest drop in the benchmark index.

The S&P 500 rose 0.1 percent to a record 1,878.04 at 4 p.m. in New York. The index erased losses of as much as 0.3 percent in the final hour of trading. The Dow Jones Industrial Average added 30.83 points, or 0.2 percent, to 16,452.72. About 6.9 billion shares changed hands on U.S. exchanges, 4 percent above the three-month average.

“ The economy is continuing to gradually improve,” Chad Morganlander, a Florham Park, New Jersey-based fund manager at Stifel Nicolaus & Co., which oversees about $150 billion of assets, said in a telephone interview. “We’ve had very good market performance over the last several weeks in spite of great uncertainty on the geopolitical front.”

The S&P 500 added 1 percent this week. The gauge recorded its biggest drop in a month on March 3 as the Ukraine situation flared. Signs of easing tensions the next day gave the index its best advance this year. It rose 0.2 percent yesterday after unemployment claims fell to a three-month low.

Jobs Report

Today’s jobs report showed the 175,000 gain in employment last month followed a revised 129,000 increase in January that was bigger than initially estimated. The median forecast of economists in a Bloomberg survey called for a 149,000 advance in February. The jobless rate unexpectedly climbed from a five-year low, rising to 6.7 percent from 6.6 percent.

The data “is obviously good news and it suggests the economy remains on an upward track,” Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees $50 billion, said in a telephone interview. “This report is going to be very supportive for those who think the growth slowdown is temporary.”

The Federal Reserve is trying to determine how much of the recent economic cooling has been due to weather. The jobs figures today showed 601,000 Americans weren’t at work because of weather during the survey week, the most since 2010.

‘Considerable Time’

Fed Bank of New York President William C. Dudley today said he sees a “reasonably favorable” outlook for the U.S. economy, even as elevated joblessness and too-low inflation warrant a high level of stimulus for a “considerable time.”

Three rounds of Fed stimulus have helped push the S&P 500 up 178 percent from a 12-year low, as U.S. equities are set to enter the sixth year of a bull market that started March 9, 2009.

In Europe, Russia said Ukraine must pay off almost $2 billion its cash-strapped neighbor owes for natural gas by today and signaled it may cut supplies, ratcheting up the pressure as the two nations scrap over the future of the Black Sea Crimea region.

The country, a key transit nation for east-west energy supplies, is struggling to keep hold of Crimea after pro-Russian forces seized control of the peninsula. The West has urged Russia to pull back, and began yesterday to impose sanctions.

‘Closely Watching’

“It’s a big deal from a geopolitical and humanitarian perspective, but not so much economically,” Richard Slinn, a San Francisco-based investment specialist at JPMorgan Private Bank, which oversees $977 billion, said by phone. “We’re watching that closely, but you can’t manage portfolios on geopolitical issues.”

The Chicago Board Options Exchange Volatility Index, a gauge for U.S. stock volatility, fell 0.7 percent to 14.11 today, trimming its advance for the week to 0.8 percent.

Five of 10 main S&P 500 (SPX)groups rose. Financials added 0.5 percent to extend a five-year high. JPMorgan Chase & Co. gained 0.9 percent to $59.40 for a fourth day of gains.

Prudential Financial Inc. rose 2.1 percent to $88.58. Bank of America Corp. raised its rating on the financial services provider to buy from neutral.

Foot Locker jumped 8.8 percent to $46.49. The retailer reported fourth-quarter adjusted profit of 82 cents a share, better than the 76 cents estimated by analysts. Sales also topped forecasts.

Johnny Football

Nike rose 1.6 percent to $79.46 for the biggest advance in the Dow. Manziel, projected to be one of the top picks in the National Football League draft in May, has signed a shoe and marketing contract with Nike Inc., ESPN reported.

An index of raw-materials producers dropped 0.5 percent to pace losses in the S&P 500. Peabody Energy fell 5.3 percent to $16.69.

Regeneron Pharmaceuticals Inc. plunged 3.1 percent to $328.11. Sanofi and Regeneron must assess the effect of their experimental cholesterol drug on brain function after U.S. regulators learned of adverse events associated with this new class of medicines.

Safeway slid 2.2 percent to $38.60. Cerberus Capital Management LP’s Albertsons agreed to buy the grocery-store operator for about $40 a share in a deal that may face federal antitrust review. State attorneys general may also request information, CEO Robert Edwards said. The government might require that some of the stores be divested, he said.

H&R Block Inc. dropped 1.8 percent to $30.39 for a fourth straight loss. The tax-preparation company reported third-quarter loss from continuous operations of 77 cents a share. Analysts on average had projected loss of 11 cents a share.

To contact the reporters on this story: Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net; Callie Bost in New York at cbost2@bloomberg.net

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net Jeremy Herron, Michael P. Regan

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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