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 Post subject: May 7th Wednesday Trade Results - Profit $8910.00
PostPosted: Thu May 08, 2014 4:25 am 
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Joined: Sat Jan 10, 2009 2:06 pm
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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)
http://twitter.com/wrbtrader (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 @ $5,160.00 dollars or +51.60 points, Emini ES ($ES_F) futures @ $3,750.00 dollars or +75.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $8,910.00 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 timestamp ##TheStrategyLab chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=130&t=1787

Quote:
If any of my real-time posted trades are via key concepts discussed in the WRB Analysis free study guide or the Fading Volatility Breakout (FVB) free trade signal strategy...I will discuss the reasons (trade strategy) behind those trades if/when a user of ##TheStrategyLab chat room ask questions about the trades. In contrast, real-time posted trades that are via the Advance WRB Analysis Tutorial Chapters 4 - 12 or the Volatility Trading Report (VTR) trade signal strategies...I discuss the reasons (trade strategy) behind those trades with fee-base clients in a different private chat room that's designated only for fee-base clients or discuss the strategies with fee-base clients on my Skype contact list.

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) general volatility analysis involving WRB Analysis 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 and I do not have the time/energy/resources to manage a signal calling chat room. Access instructions for chat room @ 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=238&t=2329

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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. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.

Stock End Mixed: Dow Up, Nasdaq Down

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

NEW YORK (CNNMoney)
"Blue-chip" stocks marched higher on Wednesday, but more trouble in the tech world kept the Nasdaq from joining the party.

The Dow Jones industrial average popped about 118 points and the S&P 500 also landed comfortably in the green. These indexes rebounded after Fed chief Janet Yellen wrapped up her remarks to Congress and stayed strong for the rest of the day.

The Nasdaq, however, closed off its lows but still firmly in the red amid selloffs for stocks like Groupon (GRPN) and Weibo (WB).

While many expected the biggest talking point of the day to be Federal Reserve chair Janet Yellen, tech stocks again took center stage, and it wasn't a pretty bow. After a brutal sell-off on Tuesday, Twitter (TWTR) shares slipped to a new all-time low below $30.

"$TWTR, seeing its ride down from $60, tempted to buy little at these levels as it looks like an ideal buy out candidate from $AAPL/$FB/$AMZN," said StockTwits user Praveenkmohan.

Shares of Groupon dove nearly 21% after the daily deals company logged a larger-than-expected quarterly loss.

NYSE-listed AOL (AOL) also plunged nearly 21% as the company's ad-driven revenue growth was overshadowed by tumbling profits. The 64% decline in earnings was driven by restructuring charges as well as writedowns.

"$AOL Just like I argued before, brand group has no moat and AOL networks has razor thin margins," said StockTwits user dtrainer_NewConstructs.

One of the biggest losers on the day was FireEye (FEYE), which crumbled almost 23% on a disappointing outlook. The cybersecurity company has tumbled close to 60% over the past three months.

"$FEYE rule number 1. never buy ANY company for more than 10x sales. No exceptions," said StockTwits user pyrrhotec

Other Internet stocks being hit include Weibo, Sina (SINA), Pandora (P), and Facebook (FB, Fortune 500).

Even some non-tech stocks listed on the Nasdaq struggled, evidenced by the 19% plummet for Whole Foods (WFM, Fortune 500). The specialty grocer was hammered after reporting sub-par results and dimming its outlook.

Momentum stocks could be in further trouble on Thursday as Tesla (TSLA) slumped 6% in after-hours trading even after reporting earnings and revenue that exceeded forecasts. On the other hand, Kuerig Green Mountain (GMCR) popped 6% as investors cheered the company's earnings beat and expanded partnership with the owners of Folgers.

Related: Whole Foods' really rotten day

Investors paid close attention to Yellen's testimony on Capitol Hill this morning. She said she believes a "high degree of monetary policy accommodation remains warranted" due to the health of the job market. That's code for not raising interest rates any time soon, which should help risk assets like stocks.

Yellen's script has so far largely mirrored the Fed's statement last week when it decided to dial back its bond-buying program by an additional $10 billion. The Fed chief blamed bad weather for the economy's ugly first quarter, but said growth should rebound.

Related: Janet Yellen worries about housing slowdown

Under questioning from lawmakers, Yellen refused to specify when the Fed will raise rates. "There is no specific timeline," she said.

Yellen said the Fed doesn't see obvious signs of a bubble in the overall equity market, though she did note "pockets" of potential "misvaluations" in smaller cap stocks.

Traders are also buzzing about Alibaba's long awaited U.S. initial public offering, which could be the biggest in U.S. history. But Yahoo (YHOO, Fortune 500), a major shareholder in Alibaba, tumbled over 6.5% as observers said the landmark filing left many questions unanswered.

U.S. stocks closed in the red on Tuesday. The Dow Jones industrial average lost nearly 130 points and the Nasdaq fell 1.4%. The S&P 500 fell 0.9% after advancing on each previous Tuesday this year.

European markets ended mixed. Asian markets all closed with losses. The Nikkei in Japan sank by nearly 3%.

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4:10 pm: [BRIEFING.COM] Equity indices finished the Wednesday session on a mixed note as high-growth names weighed on the Russell 2000 (+0.1%) and the Nasdaq (-0.3%), while the Dow Jones Industrial Average (+0.7%) and S&P 500 (+0.6%) outperformed thanks to strength in blue chip listings.

The stock market opened the trading day with modest gains amid headlines indicating Russia's President Vladimir Putin has reached out to OSCE chief and Swiss President Didier Burkhalter, attempting to de-escalate the Ukraine crisis through diplomatic avenues. Initially, the reports boosted overall risk appetite, sending Treasuries and the yen to lows, but those moves were retraced not long after. The yen returned into the middle of its trading range, while Treasuries reclaimed their losses and spent the afternoon near their flat lines. The benchmark 10-yr yield ended unchanged at 2.59%.

Stock indices, meanwhile, surrendered their opening gains during the first hour of action, but only the Nasdaq Composite spent the remainder of the session in the red, while the Dow and S&P 500 rebounded swiftly.

The S&P 500 tested its 50-day moving average (1865), spring-boarding off its early low with help from a handful of large sectors. Consumer staples (+1.0%), energy (+0.8%), and industrials (+0.9%) contributed to the recovery, while financials (+1.3%) finished ahead of the remaining cyclical groups following yesterday's underperformance.

Even though the financial sector posted a solid gain, it was unable to turn positive for the year, trimming its year-to-date loss to 0.01%. Meanwhile, the only other sector that holds a year-to-date loss-consumer discretionary (-0.2%)-joined health care (+0.2%) and technology (-0.2%) among today's laggards.

All three sectors contain a fair share of momentum names, which were the source of the relative weakness within the Nasdaq. Most notably, shares of FireEye (FEYE 28.65, -8.48) plunged 22.8% after the company reported in-line earnings, but issued disappointing guidance. Other momentum names fared a bit better, but Facebook (FB 57.39, -1.14) and Twitter (TWTR 30.66, -1.19) lost 2.0% and 3.7% respectively, while Tesla (TSLA 201.35, -5.93) slid 2.9% ahead of its after-hours quarterly report. Similarly, Priceline.com (PCLN 1131.74, -36.62) sank 3.1% prior to its report, which is due out tomorrow.

Elsewhere, biotechnology also factored into the underperformance of the Nasdaq. The iShares Nasdaq Biotechnology ETF (IBB 227.48, -1.85) fell 0.8%, while the broader health care sector (+0.2%) returned to its early high into the close.

The other countercyclical sectors ended among the leaders with the utilities sector (+1.6%) widening its year-to-date gain to 13.8%. For its part, consumer staples (+1.0%) overcame a disappointing quarterly report from Whole Foods (WFM 38.93, -9.02) that pressured the stock back to levels not seen since early 2012.

Participation was above average as roughly 750 million shares changed hands at the NYSE.

Economic data was limited to Q1 productivity and unit labor costs and the Consumer Credit report for March:
Related Stories

InPlay from Briefing.com Briefing.com
Nasdaq, S&P 500 On Track For Sixth Straight Gain Investor's Business Daily
Quiet Session Intensifies As Stocks Hit Session Lows Investor's Business Daily
US STOCKS-Dow ends at record as Fed upbeat on economy Reuters
Stocks Stage Late Comeback; Apple Bucks Weakness Investor's Business Daily

Nonfarm business labor productivity declined 1.7% in the first quarter after increasing an upwardly revised 2.3% (from 1.8%) in Q4 2013. The Briefing.com consensus expected the reading to decline 1.2%. This was the first decline in productivity since Q1 2013 when it declined 1.8%. With a 0.1% increase in Q1 2014 GDP, there was no doubt that productivity declined during the first quarter. Output levels managed to increase a minimal 0.3% in the first quarter, but that was dwarfed by a 2.0% increase in hours worked. Hours growth had not exceeded 2% since Q4 2012.
Hourly compensation increased 2.4%, up from a 1.9% gain in Q4 2013. That was the largest increase since Q4 2012 when it rose 10.2%. Given the flat wage data in the April Employment Report, compensation growth is unlikely to remain at its first quarter pace. The combination of higher hours and compensation along with weak output growth caused unit labor costs to increase 4.2% in the first quarter.
Consumer credit increased by $17.50 billion in March, which was higher than the Briefing.com consensus estimate of $16.10 billion. The prior month's credit growth was revised lower to $13.30 billion from $16.50 billion.

Tomorrow, weekly initial claims (Briefing.com consensus 325,000) will be announced at 8:30 ET.

S&P 500 +1.6% YTD
Dow Jones Industrial Average -0.4% YTD
Nasdaq Composite -2.6% YTD
Russell 2000 -4.5% YTD

3:30 pm: [BRIEFING.COM]

Precious metals trended lower in negative territory today as the dollar index traded slightly higher
Fed Chair Yellen appeared before the Joint Economic Committee and noted that she expects economic activity will expand at a "somewhat faster pace" this year than it did in 2013
June gold pulled back from its session high of $1305.50 per ounce set moments after pit trade opened and settled with a 1.5% loss at $1288.90 per ounce
July silver retreated from its session high of $19.59 per ounce in early morning action. Unable to gain momentum, it settled at $19.34 per ounce, or 1.5% lower
June natural gas fell into negative territory after it pulled back from its session high of $4.81 per MMBtu set at floor trade open. It touched a session low of $4.71 per MMBtu and settled with a 1.3% loss at $4.74 per MMbtu.
June crude oil, on the other hand, traded higher following better-than-anticipated inventory data. The EIA reported that for the week ending May 2, crude oil inventories had a draw of 1.78 mln barrels when consensus called for a build of 1.25-1.4 mln barrels
The energy component rose from a session low of $99.79 per barrel and touched a session high of $101.09 per barrel. It eventually settled with a 1.3% gain at $4.74 per MMBtu.

3:05 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.3% with one hour remaining in today's session. Following today's closing bell, participants will receive a heavy dose of earnings as the Q1 reporting season draws to a close.

Results due out this evening will be headlined by a member of the Dow Jones Transportation Average-Expeditors International (EXPD 41.35, +0.10). In addition, Prudential (PRU 80.58, +0.47), Tesla (TSLA 200.00, -7.28), and Zillow (Z 94.89, -8.03) will also report their earnings.

Another large swath of quarterly reports awaits tomorrow morning, with DISH Network (DISH 62.19, -0.26), Sony (SNE 17.52, +0.01), and Priceline.com (PCLN 1136.30, -32.06) headlining the list.

On a separate note, the Consumer Credit report for March was just released by the Federal Reserve and it showed that consumer credit increased by $17.50 billion. That was higher than the Briefing.com consensus estimate of $16.10 billion. The prior month's credit growth was revised lower to $13.30 billion from $16.50 billion.

2:30 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.3% as the quiet afternoon continues. As mentioned earlier, countercyclical sectors (with the exception of health care) have had a solid showing today. In fact, the utilities sector, which trades higher by 1.3%, has extended its year-to-date gain to 13.5%.

The utilities sector has been distancing itself from the rest of the pack, but the energy space (+0.8%) has been trying to close the gap during the second quarter. Energy sports a year-to-date gain of 6.7% with the bulk of the move taking place since the end of March. The growth-sensitive sector has added 6.5% over the past five weeks.

On the downside, the weakest sector of the year-consumer discretionary (-0.6%)-has widened its year-to-date loss to 5.7%.

2:05 pm: [BRIEFING.COM] The major averages have settled into relatively narrow afternoon ranges after showing morning volatility that has left the Russell 2000 (-1.1%) and Nasdaq Composite (-1.2%) in the red.

Meanwhile, the S&P 500 hovers right above its flat line. Seven of ten sectors hold gains with two countercyclical groups-telecom services (+1.2%) and utilities (+1.2%)-in the lead. Another defensive sector-consumer staples (+0.8%)-also trades among the leaders amid broad strength.

However, one component that is enduring a forgettable session is Whole Foods (WFM 38.67, -9.28). Shares of the company have tumbled 19.3% after the grocer reported disappointing results and issued cautious guidance. Today's decline has sent the stock back to levels last seen in early 2012.

1:30 pm: [BRIEFING.COM] The stock market is mixed in what is turning out to be an interesting trading session. To that end, the Dow Jones Industrial Average (+0.6%) and the S&P 500 (+0.2%) are doing well while the Nasdaq Composite (-1.0%) and Russell 2000 (-0.7%) are struggling.

The disparate showing is a tacit sign that there is a rotation underway out of small-cap/growth stocks and into blue chip/value stocks. Strikingly, the Dow sits close to its best level of the day while the Russell 2000 sits closer to its low.

Separately, the $24 bln 10-yr note auction saw some decent demand. The offering drew a high yield of 2.612% with a 2.63x bid-to-cover ratio that was about in-line with the prior 12-auction average of 2.645%.

The 10-yr note didn't react much after the auction, but it has held its ground today due in part to the struggles being experienced by the growth stocks and Fed Chair Yellen's acknowledgment that there is no set timetable for the timing of a first rate hike by the Federal Reserve.

1:05 pm: [BRIEFING.COM] At midday, the major averages trade in mixed fashion. The Dow Jones Industrial Average (+0.5%) and S&P 500 (+0.2%) sport modest gains, while the Nasdaq Composite (-1.1%) and Russell 2000 (-0.9%) lag amid weakness in high-growth names.

Equity indices began the session on an upbeat note following a report from Interfax indicating Russia's President Vladimir Putin will meet with the OSCE chair and Swiss President Burkhalter in an attempt at finding a diplomatic solution to the crisis in Ukraine. The reports lifted futures off their lows and weighed on the yen, but the Japanese currency has since regained a good portion of its loss. Currently, the dollar/yen pair trades near 101.70 after notching a high at 102.00.

Despite the higher start, the major averages surrendered their gains during the first hour of action with the Nasdaq bearing the brunt of the selling. The tech-heavy index remains in the red at this juncture, while the Dow and S&P 500 have been able to register fresh highs thanks to the relative strength of large sectors like consumer staples (+0.8%), energy (+0.7%), financials (+0.9%), and industrials (+0.5%). However, sectors that contain a fair share of high-growth names-consumer discretionary (-0.6%), technology (-0.9%), and health care (-0.4%)-continue weighing on the broader market.

Once again, momentum names have turned lower as a group, with FireEye (FEYE 28.00, -9.13) plunging nearly 25.0% following its quarterly report. Although the company reported in-line earnings, its guidance was below analyst estimates, and the announced acquisition of nPulse is likely to lead to a secondary share offering after shares of FEYE plunged more than 70.0% from their early March high.

Other momentum names like Facebook (FB 56.74, -1.79), LinkedIn (LNKD 140.08, -2.25), and Twitter (TWTR 30.08, -1.77) are down between 1.5% and 5.5%.

On a separate note, Fed Chair Yellen appeared before the Joint Economic Committee, but her prepared remarks fell along the lines of what has been said in the past. Ms. Yellen commented on the outlook, saying she expects economic activity will expand at a 'somewhat faster pace' this year than it did in 2013. Interestingly, Treasuries do not appear to be sharing the same outlook with the 10-yr yield trading roughly 40 basis points below its 2013 closing level.

Today, the 10-yr note holds a modest gain with the benchmark yield down one basis point at 2.59%.

Economic data was limited to Q1 productivity and unit labor costs:

Nonfarm business labor productivity declined 1.7% in the first quarter after increasing an upwardly revised 2.3% (from 1.8%) in Q4 2013. The Briefing.com consensus expected the reading to decline 1.2%. This was the first decline in productivity since Q1 2013 when it declined 1.8%. With a 0.1% increase in Q1 2014 GDP, there was no doubt that productivity declined during the first quarter. Output levels managed to increase a minimal 0.3% in the first quarter, but that was dwarfed by a 2.0% increase in hours worked. Hours growth had not exceeded 2% since Q4 2012.
Hourly compensation increased 2.4%, up from a 1.9% gain in Q4 2013. That was the largest increase since Q4 2012 when it rose 10.2%. Given the flat wage data in the April Employment Report, compensation growth is unlikely to remain at its first quarter pace. The combination of higher hours and compensation along with weak output growth caused unit labor costs to increase 4.2% in the first quarter.

The Consumer Credit report (Briefing.com consensus $16.10 billion) for March will be released at 15:00 ET.

12:30 pm: [BRIEFING.COM] Equity indices remain near their recent levels with the Dow Jones Industrial Average trading higher by 0.7%.

The price-weighted Dow has been able to avoid the aggressive selling that has taken place among momentum names as 24 of its 30 components display gains. In fact, of the 24 names trading in the green, 14 are higher by 1.0% or more. The Dow has received support from some of its highest priced issues as Visa (V 208.54, +3.18), IBM (IBM 189.96, +1.03), and Goldman Sachs (GS 156.01, +1.47) are up between 0.6% and 1.6%.

On the downside, Merck (MRK 56.21, -0.90) is the weakest component, down 1.6% following a Morgan Stanley downgrade to 'Equal-Weight' from 'Overweight.'

12:00 pm: [BRIEFING.COM] Recent action saw the Dow (+0.7%) and S&P 500 (+0.4%) climb to fresh highs, while the Nasdaq Composite (-0.6%) remains in the red.

The move higher was not isolated to any particular sector as all ten groups moved up from their previous levels. Most notably, the financial sector, which has been showing strength since the open, has extended its gain to 1.1%.

The financial sector is the top performing cyclical group, but there are two countercyclical groups that are having an even better showing. Telecom services (+1.3%) and utilities (+1.2%) both trade ahead of financials, but it is worth mentioning the two groups account for just over 5.0% of the entire market.

11:30 am: [BRIEFING.COM] Momentum names continue exerting pressure on the broader market, which has the Nasdaq trading lower by 1.3%. Meanwhile, the S&P 500 (-0.1%) outperforms modestly as the relative strength of energy (+0.5%), financials (+0.5%), industrials (+0.2%), and consumer staples (+0.5%) is keeping the benchmark index ahead of the Nasdaq.

Dip-buyers have their work cut out for them as the market's ability to climb higher will hinge on the performance of the four largest sectors that account for nearly a half of the entire S&P 500. Financials (+0.6%) outperform, but consumer discretionary (-0.7%), health care (-0.7%), and technology (-1.0%) are near their session lows.

On the fixed income side, Treasuries trade at their best levels since the early morning. The benchmark 10-yr yield is lower by one basis point at 2.58%.

10:55 am: [BRIEFING.COM] The S&P 500 trades within a point of its flat line while the tech-heavy Nasdaq (-1.0%) lags considerably amid weakness in high-growth names like Facebook (FB 57.17, -1.36), FireEye (FEYE 28.52, -8.61), LinkedIn (LNKD 140.53, -1.80), and Twitter (TWTR 30.48, -1.37).

Similarly, the biotech industry group has also had a rough go of it so far today. The iShares Nasdaq Biotechnology ETF (IBB 225.61, -3.72) is lower by 1.6% as it probes its 200-day moving average. The broader health care sector, meanwhile, is lower by 0.6%, trading only ahead of technology (-0.8%).

Also of note, Fed Chair Yellen is now answering questions from the Joint Economic Committee after her prepared remarks fell along the lines of what has been said in the past. However, Ms. Yellen did indicate she expects economic activity will expand at a 'somewhat faster pace' this year than it did in 2013.

10:35 am: [BRIEFING.COM]

Commodities are mostly lower this morning with the dollar index showing some gains
Crude oil, however, was just over $100/barrel up about 0.7% just ahead of the weekly inventory data
Following the data, June crude oil rose modestly and is now +0.9% at $100.35/barrel.
Gold and silver futures sold off this morning and are now near lows on the day
June gold is currently -0.8% at $1297.60/oz, while July silver is -1.2% at $19.41/oz.
June natural gas rose as high as $4.83/MMBtu this morning, about 25 min before pit trading opened. However, the energy component erased some gains and is now -0.6% at $4.77/MMBtu.
July copper is -1% at $3.03/lb.

10:00 am: [BRIEFING.COM] The Dow (+0.3%) and S&P 500 (+0.1%) continue holding modest gains, but the Nasdaq (-0.7%) has tumbled to a fresh low amid considerable weakness in the technology sector (-0.5%).

Momentum names are seeing broad-based selling pressure, with FireEye (FEYE 28.83, -8.30) down in excess of 22.0% after reporting earnings. Although the company announced in-line results, its earnings guidance was below estimates. In addition, the company announced the acquisition of nPulse, which may lead to a secondary share offering by FEYE. Other momentum names like Facebook (FB 57.07, -1.46), LinkedIn (LNKD 136.47, -5.86), and Yelp (YELP 51.07, -1.06) are down between 2.0% and 4.0%.

9:40 am: [BRIEFING.COM] The stock market rallied out of the gate with blue chip indices in the lead. The Dow Jones Industrial Average and S&P 500 are both up near 0.3%, while the Russell 2000 and Nasdaq Composite hover closer to their respective flat lines.

All ten sectors display early gains with yesterday's laggard-financials (+0.5%)-setting the pace in the early going. Despite the strength in financials, other top-weighted sectors are not nearly as strong. Consumer discretionary, health care, and technology all display gains of no more than 0.1% apiece.

Treasuries continue holding slim losses with the 10-yr yield at 2.60%.

9:14 am: [BRIEFING.COM] S&P futures vs fair value: +4.60. Nasdaq futures vs fair value: +7.00. The major averages are on track to begin today's session on a modestly higher note as futures on the S&P 500 trade five points above fair value after spiking off lows amid reports Russia's President Vladimir Putin will discuss the Ukraine crisis with the OSCE chairman in an attempt at de-escalating the situation.

The reports of the impending meeting boosted risk appetite in the foreign exchange market where the yen has slumped from its session high against other major currencies. The dollar/yen pair hovers just below 101.80 after trading near 101.45 earlier this morning. Conversely, the Dollar Index (+0.1%) holds a modest gain.

A similar posture has been reflected by the Treasury market as the 10-yr note slid to lows before reclaiming a portion of its loss. The benchmark yield is pegged at 2.60%.

Also of note, Fed Chair Janet Yellen is scheduled to begin her testimony before the Joint Economic Committee at the top of the hour. Ms. Yellen's prepared remarks are unlikely to cause any shockwaves, but the subsequent Q&A session could produce some market-moving remarks.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: +6.40. Nasdaq futures vs fair value: +11.50. The S&P 500 futures trade six points above fair value.

Asian markets ended lower across the board with Japan's Nikkei (-2.9%) leading the slide as the market reopened following a two-day closure. Applications for new IPOs in China continued flowing in with 32 more applications being announced by the China Securities Regulatory Commission. Elsewhere, the Bank of Japan released the minutes from its latest meeting, but the release was a non-event for the most part. Policymakers described consumer spending as 'resilient' following the April tax hike.

In economic data:

China's HSBC Services PMI fell to 51.4 from 51.9.
Hong Kong's Manufacturing PMI slipped to 49.7 from 49.9.
Australia's Retail Sales ticked up 0.1% month-over-month (consensus 0.4%, previous 0.3%), while the AIG Construction Index fell to 45.9 from 46.2.
New Zealand's Employment Change came in at 0.9% quarter-over-quarter (expected 0.6%, previous 1.1%), while the Unemployment Rate held steady at 6.0% (consensus 5.9%). Separately, the Labor Cost Index rose 0.3% quarter-over-quarter (consensus 0.5%, previous 0.6%).

------

Japan's Nikkei lost 2.9%, ending on lows as industrials weighed. OKUMA and Yaskawa Electric both lost near 6.0%. On the upside, only three listings posted slim gains, with Japan Tobacco adding 0.9%.
Hong Kong's Hang Seng settled lower by 1.1% after spending the entire session in the red amid weakness in property names. China Resources Land and China Overseas Land led the retreat with respective losses of 4.7% and 4.5%.
China's Shanghai Composite fell 0.9%, slumping into the close. Technology shares lagged as Routon Electronic and Shanghai Potevio lost 6.0% and 6.7%, respectively. China Vanke outperformed, climbing 1.0%.

Major European indices spiked off their lows amid reports from Interfax indicating Russia's President Putin will discuss the Ukraine crisis with the OSCE chairman.

Economic data was limited:

Eurozone Retail PMI rose to 51.2 from 49.2.
Germany's Factory Orders fell 2.8% month-over-month (consensus 0.3%, previous 0.9%).
French Industrial Production declined 0.7% month-over-month (forecast 0.2%, last 0.1%), while the trade deficit widened to EUR4.90 billion from EUR3.80 billion (expected deficit of EUR4.00 billion).
Swiss Unemployment Rate held steady at 3.2%, as expected.

------

Germany's DAX is higher by 0.5% as heavyweights Siemens and Henkel lead with respective gains of 2.2% and 4.9%. Commerzbank lags, trading lower by 3.3% after missing earnings estimates.
In France, the CAC is higher by 0.2%. Credit Agricole leads with a gain of 5.4% after beating earnings estimates. On the downside, Veolia Environnement is lower by 3.5% following its disappointing results.
Great Britain's FTSE is lower by 0.2%. WM Morrison Supermarkets is among the laggards, down 5.1% after Credit Agricole downgraded the stock to 'Sell.' Consumer names outperform with ITV and InterContinental Hotels both up near 1.5%.
Italy's MIB holds a loss of 0.4%. Shares of Fiat lead the retreat with a loss of 8.2% in reaction to the company's earnings and its five-year plan that was released today. The company said it expects to sell roughly 7 million vehicles per year by 2018 versus 4.4 million sold in 2014.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: +7.80. Nasdaq futures vs fair value: +14.00. The S&P 500 futures trade eight points above fair value.

First quarter unit labor costs increased 4.2%, which was higher than the 2.5% increase that had been anticipated by the Briefing.com consensus. During the same period, productivity decreased 1.7%, according to the preliminary reading. The consensus expectation was for a decrease of 1.2%.

7:56 am: [BRIEFING.COM] S&P futures vs fair value: +5.50. Nasdaq futures vs fair value: +8.00. U.S. equity futures trade modestly higher amid mixed action in Europe. The S&P 500 futures hover almost six points above fair value following a recent rally that took place after Interfax reported Russia's President Vladimir Putin will discuss the Ukraine situation with other regional leaders.

Reviewing overnight developments:

Asian markets ended lower across the board. China's Shanghai Composite -0.9%, Hong Kong's Hang Seng -1.1%, and Japan's Nikkei -2.9%.
In economic data:
China's HSBC Services PMI fell to 51.4 from 51.9.
Hong Kong's Manufacturing PMI slipped to 49.7 from 49.9.
Australia's Retail Sales ticked up 0.1% month-over-month (consensus 0.4%, previous 0.3%), while the AIG Construction Index fell to 45.9 from 46.2.
New Zealand's Employment Change came in at 0.9% quarter-over-quarter (expected 0.6%, previous 1.1%), while the Unemployment Rate held steady at 6.0% (consensus 5.9%). Separately, the Labor Cost Index rose 0.3% quarter-over-quarter (consensus 0.5%, previous 0.6%).
In news:
Applications for new IPOs in China continued flowing in with 32 more applications being announced by the China Securities Regulatory Commission.
The Bank of Japan released the minutes from its latest meeting, but the release was a non-event for the most part. Policymakers described consumer spending as 'resilient' following the April tax hike.

Major European indices trade in mixed fashion. Germany's DAX +0.6%, France's CAC +0.4%, and Great Britain's FTSE -0.1%. Elsewhere, Italy's MIB -0.4% and Spain's IBEX is unchanged.
Economic data was limited:
Eurozone Retail PMI rose to 51.2 from 49.2.
Germany's Factory Orders fell 2.8% month-over-month (consensus 0.3%, previous 0.9%).
French Industrial Production declined 0.7% month-over-month (forecast 0.2%, last 0.1%), while the trade deficit widened to EUR4.90 billion from EUR3.80 billion (expected deficit of EUR4.00 billion).
Swiss Unemployment Rate held steady at 3.2%, as expected.
Among news of note:
Shares of Fiat were halted in Milan after falling more than 8.5% in reaction to the company's five-year plan that was released today. The company said it expects to sell roughly 7 million vehicles per year by 2018 versus 4.4 million sold in 2014.

In U.S. corporate news:

Chesapeake Energy (CHK 29.02, +0.67): +2.4% following its earnings beat on above-consensus revenue.
Disney (DIS 81.76, +0.73): +0.9% after beating earnings and revenue expectations.
Electronic Arts (EA 33.50, +5.45): +19.4% after beating estimates and guiding above analyst expectations.
Marathon Oil (MRO 36.70, +0.51): +1.4% following its better than expected results.
Mondelez (MDLZ 37.25, +2.03): +5.8% after beating bottom-line estimates.
Whole Foods (WFM 39.33, -8.62): -18.0% after missing earnings estimates and lowering its guidance.

The weekly MBA Mortgage Index rose 5.3% to follow last week's 5.9% decline.

Q1 Productivity and Unit Labor Costs will be announced at 8:30 ET and the Consumer Credit report for March will be released at 15:00 ET. Also of note, Fed Chair Janet Yellen will appear before the Joint Economic Committee at 10:00 ET.

6:45 am: [BRIEFING.COM] S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: -4.00.

6:45 am: [BRIEFING.COM] Nikkei...14033.45...-424.10...-2.90%. Hang Seng...21746.26...-230.10...-1.10%.

6:45 am: [BRIEFING.COM] FTSE...6772.49...-26.10...-0.40%. DAX...9455.48...-12.10...-0.10%.

Treasuries Little Changed as Yellen Testifies to Congress

By Susanne Walker May 7, 2014 5:06 PM ET

The Treasury market yield curve steepened after Federal Reserve Chair Janet Yellen said a “high degree” of accommodation remains warranted, tempering expectations for an acceleration of interest-rate increases.

The difference in yields between five- and 30-year securities increased to about 175 basis points, or 1.75 percentage points, as investors bet moderate growth will prompt the central bank to stick with forecasts for increases next year. Benchmark 10-year notes were little changed after the U.S. auctioned $24 billion of the securities. It will sell $16 billion in 30-year bonds tomorrow.

“Yellen was able to restate the Fed’s commitment to easing and sidestep being pigeonholed into providing a timeline, and that has helped the curve steepen, along with the setup for tomorrow’s 30-year bond auction,” said Adrian Miller, director of fixed-income strategies at GMP Securities LLC in New York. “The bias is for a steeper curve into tomorrow.”

Five-year yields dropped three basis points to 1.65 percent at 5 p.m. in New York, based on Bloomberg Bond Trader data. They touched 1.63 percent, the lowest since April 17. The price of the 1.625 percent note due in April 2019 gained 1/8, or $1.25 per $1,000 face amount, to 99 7/8.

The 30-year bond yield increased two basis points to 3.40 percent.

Ten-year notes yielded 2.59 percent, after rising as much as two basis points. The yield sank to 2.57 percent on May 5, matching the low on Feb. 3, which was the least since Nov. 1.

Yield Curve

The gap between the yields on U.S. five- and 30-year (USGG30YR) securities widened after touching 1.68 percentage points on May 2, the narrowest since 2009.

Longer-term bonds tend to rise or fall based on the outlook for inflation, while shorter maturities are anchored by the Fed’s policy rate.

The 10-year notes auctioned today yielded 2.612 percent, the lowest level since the June offering of the debt. The average forecast in a Bloomberg News survey of eight of the Fed’s 22 primary dealers was for 2.613 percent.

Investors submitted bids for 2.63 times the amount of 10-year notes for sale today, compared with 2.76 at the auction in April and an average of 2.67 at the past 10 offerings.

Tomorrow’s Auction

“It sets up well for tomorrow’s auction,” said Jason Rogan, managing director of U.S. government trading at Guggenheim Securities LLC, a New York-based brokerage for institutional investors. “The desire to own the market far outweighs the market’s willingness to sell at this time.”

Today’s auction was the second of three note-and-bond sales this week, and tomorrow’s long-bond offering is the third. The Treasury sold $29 billion of three-year notes yesterday at a yield of 0.928 percent.

Yellen told the congressional Joint Economic Committee that data show “solid growth” in the second quarter, bolstering the case for a faster expansion this year. Still, she said, “many Americans who want a job are still unemployed” and inflation remains low.

The central-bank chief called the unemployment rate, which fell to a more-than five-year (USGG5YR) low of 6.3 percent in April, “elevated.” She and most Fed policy makers reckon the long-run sustainable jobless rate is between 5.2 percent and 5.6 percent.

The Fed’s preferred measure of inflation, the personal consumption expenditures deflator, rose 1.1 percent in March from a year ago, a report on May 1 showed. The gauge has fallen short of the bank’s 2 percent target for almost two years.

Financial Stress

Yellen cited the slowdown in U.S. housing as a risk, along with “heightened geopolitical tensions” and financial stress in emerging markets. Gains in household wealth from rising home prices, less drag from federal and state and local budgets, and stronger growth abroad should all drive investment and consumption, Yellen said.

The U.S. added 288,000 jobs in April, the Labor Department said this month, the most since January 2012. Separate data have shown gains in consumption, manufacturing and service industries, while gross domestic product expansion slowed to a 0.1 percent annualized rate in the first quarter after rising at a 2.6 percent pace in the previous three months.

“The Fed is going to remain in the game for now,” said Sean Simko, a money manager who oversees $8 billion at SEI Investments Co. in Oaks, Pennsylvania. “It keeps Treasuries in the range they’re in. She has alluded to the economy making strides. We still need to remain patient.”

Interest Rate

The Fed said April 30 it will keep the key interest-rate target at virtually zero for a “considerable time” after its bond-buying program ends. It reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions in the stimulus program are likely in “measured steps” if the economy continues to improve.

Treasury long-term notes and bonds were the world’s best-performing government securities over the past month amid tamed inflation and slowing economic growth.

U.S. government securities due in 10 years and more returned 3.5 percent in the month ended yesterday, the most of 144 debt indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies.

To contact the reporter on this story: Susanne Walker in New York at swalker33@bloomberg.net

To contact the editors responsible for this story: Dave Liedtka at dliedtka@bloomberg.net Greg Storey

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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