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 Post subject: July 29th Tuesday Trade Results - Profit $1570.00
PostPosted: Tue Jul 29, 2014 11:10 pm 
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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)
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 @ $1,570.00 dollars or +15.70 points, Emini ES ($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 @ $1,570.00 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=132&t=1849

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=242&t=2402

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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.

Telecom Bounce Not Enough To Buoy Stocks

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

NEW YORK (CNNMoney)
The summer doldrums appear to be officially here. Stocks didn't do much Tuesday -- a day after the market was mostly spinning its wheels.

The Dow, the S&P 500 and Nasdaq all fell modestly in late trading on an otherwise tame day, with the Dow down 70 points, or 0.4%.

Here are some highlights from today's trading.

1) New York Times, UPS deliver bad news: The New York Times (NYT) reported a bad quarter, with earnings plunging and coming short of analyst projections amid higher costs. The stock fell more than 8%.

Related: Have digital subscriptions peaked at the NYT?

Shipping giant UPS (UPS) reported earnings that were short of what Wall Street was expecting, and its stock is down more than 3.5%. Profits in U.S. package deliveries, its second-biggest unit, were down 81.5% from the same time last year.

2) Apple nears all-time high, Twitter explodes after hours: After it went nowhere all day Apple (AAPL, Tech30) is still less than 2% from an all-time high, with the stock on the cusp of $100.

Video - Apple this close to new all-time high

Shares have rallied lately following a stock split that brought the stock price to a more affordable level for average investors. Wall Street is also excited about new products like the next iPhone as well as the company's new strategy to acquire more companies. Apple has bought two small start-ups in the past few weeks.

Another closely followed tech, Twitter (TWTR, Tech30), was surging nearly 25% after hours following its strong second quarter report. Sales and user growth topped expectations.

3) GameStop drops: Shares in video game retailer GameStop (GME) fell almost 6%. The drop comes after Electronic Arts (EA, Tech30) announced a new subscription service, EA Access, for Xbox One owners. The game maker promises that the service will give subscribers access to its biggest titles. EA, the top gainer in CNNMoney's Tech 30 index this year, fell 2%.

4) Food movers: Chicken chain El Pollo Loco (LOCO), after a spectacular rally following its IPO, fell 13%. The company's shares are almost double their offering price from just three trading sessions ago.

Darden Restaurants (DRI), the company that owns the Olive Garden and recently sold Red Lobster, told investors that chairman and CEO Clarence Otis would be stepping down after the end of the year. David Hughes a board member, will be following him out the door.

Related: Red Lobster aims upscale in revamp

The moves leave three seats open at Darden's board of directors, and the company has promised them to activist investors who had been pushing for a shake-up. Its shares rose more than 4%.

5) Phone stocks jump: Telecom Windstream (WIN) told investors that it plans to spin off part of its network into a REIT, a type of real estate investing vehicle that should lower the company's tax bill. Shares surged 12%, making them one of the top gainers in the S&P 500.

Stocks across the sector were higher on speculation about other similar moves happening. Frontier Communications (FTR), another phone company, is up 14% and is the best performing stock in the S&P 500 today. AT&T (T, Tech30) is up almost 3%, and Verizon (VZ, Tech30) is trading more than 1% higher. Cable company Cablevision (CVC) shot up more than 3% as well.

6) Herbalife falters: Herbalife (HLF), the nutritional supplement producer that has been going to war with hedge fund investor Bill Ackman over his huge bet against the company, reported earnings that disappointed for the first time in a while. The stock, which soared after investors dismissed Ackman's latest presentation against Herbalife, is down 13.5%.

Related: Sorry Bill, Herbalife's woes aren't about you

7) International markets: European stocks were doing well, with the Eurostoxx 50 index about 0.6% higher. Russia's MICEX index, despite the impending arrival of new sanctions, also finished 0.6% higher. Asian stocks ended the day mostly higher, with Chinese stocks doing very well. Taiwan sticks out as an exception, finishing 0.3% lower.

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4:20 pm: [BRIEFING.COM] The stock market ended the Tuesday session on a lower note after generally upbeat earnings took the back seat to geopolitical concerns. The S&P 500 (-0.5%) and Nasdaq Composite (-0.1%) ended on their lows, while the Russell 2000 (+0.3%) displayed relative strength.

Once again, market participants were focused on quarterly reports in the early going, but geopolitical worries overshadowed the impact of mostly better than expected earnings. Specifically, equities retreated after it was reported that European EU officials have prepared the new set of sanctions against Russia. The imposition of new sanctions may pique concerns about a boomerang effect on the global economy, and Europe in particular, but it is worth noting that the Russian ruble and Market Vectors Russia ETF (RSX 23.85, -0.50) strengthened in reaction to the news.

The reports of forthcoming sanctions were followed by afternoon headlines from Washington indicating the Treasury Department has added VTB, the Bank of Moscow, and Russian Agriculture Bank to the sanction list. After the news crossed the wires, the RSX and the ruble dropped to fresh lows, as did the S&P 500.

Nine of ten sectors registered losses with the industrial space (-1.2%) spending the day at the bottom of the leaderboard. The sector was pressured by transport stocks after UPS (UPS 98.86, -3.80) reported disappointing results and guided lower. For its part, the Dow Jones Transportation Average logged its fourth consecutive loss, tumbling 1.4% with 17 of its 20 components ending in the red.

Unlike the industrial sector, other cyclical groups fared a bit better. Financials (-0.6%) and materials (-0.7%) lagged, while consumer discretionary (-0.3%) and technology (-0.2%) displayed relative strength.

In the discretionary sector, Honda Motor (HMC 36.02, +0.84) advanced 2.4% after reporting a slim earnings beat. The carmaker underpinned the sector, which also drew strength from retailers. The SPDR S&P Retail ETF (XRT 84.24, 0.00) ended flat.

Elsewhere, the relative strength of the technology sector kept the broader market from sliding deeper into the red. High-beta chipmakers contributed to the outperformance with the likes of AMD (AMD 3.79, +0.06), Broadcom (BRCM 37.99, +0.27), and Taiwan Semiconductor (TSM 20.55, +0.18) adding between 0.7% and 1.6%.

Similarly, biotech companies also rallied with the iShares Nasdaq Biotechnology ETF (IBB 254.78, +2.87) ending higher by 1.1%. Meanwhile, the health care sector settled flat.

On the upside, only one sector finished in the green. Telecom services (+2.2%) rallied after Windstream (WIN 11.83, +1.30) was cleared by the Internal Revenue Service to spin off its assets into a publically-traded REIT. Peers AT&T (T 36.59, +0.94) and Verizon (VZ 51.97, +0.39) gained 2.6% and 0.8%, respectively on speculation they could also explore conversions into REITs.

On the fixed income side, Treasuries ended the session with modest gains that pressured the 10-yr yield lower by two basis points to 2.46%.

Participation was on the light side with 615 million shares changing hands at the NYSE.

Economic data was limited to the Case-Shiller 20-city Index and the Consumer Confidence report:
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US STOCKS SNAPSHOT-Apple's results lift S&P 500 to record close Reuters

The Case-Shiller 20-city Home Price Index for May rose 9.3%, while a 10.0% increase had been expected by the Briefing.com consensus
This followed the previous month's increase of 10.8%
The Conference Board's Consumer Confidence Index spiked to 90.9 in July from an upwardly revised 86.4 (from 85.2), while the Briefing.com consensus pegged the Index at 85.6
Consumer confidence is now at its highest level since October 2007
The Present Situation Index increased to 88.3 from 86.3 and the Expectations Index rose to 92.7 from 86.4

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while the ADP Employment Change for July (Briefing.com consensus 215K) will be reported at 8:15 ET. The advance reading of Q2 GDP will be released at 8:30 ET (consensus 3.2%), while the FOMC will reveal its latest policy statement at 14:00 ET.

S&P 500 +6.6% YTD
Nasdaq Composite +6.4% YTD
Dow Jones Industrial Average +2.0% YTD
Russell 2000 -1.8% YTD

3:35 pm: [BRIEFING.COM]

Aug gold fell into negative territory after trading as high as $1310.30 per ounce in morning action as the dollar index strengthened. The yellow metal brushed a session low of $1295.50 per ounce and eventually settled with a 0.4% loss at $1298.20 per ounce.
Sep silver also pulled back from its session high of $20.79 per ounce set in early morning pit trade and brushed a session low of $20.50 per ounce. It inched slightly higher heading into the close and settled 1 cent higher at $20.58 per ounce.
Sep crude oil extended yesterday's losses as the stronger dollar index weighed on prices. The energy component spent its entire floor session in the red, trading as low as $100.32 per barrel. Unable to gain buying support, it settled at $100.91 per barrel, or 0.8% lower.
Sep natural gas dipped to a session low of $3.74 per MMBtu in morning action and chopped around slightly below the unchanged level. Buyers stepped in during the last hour of floor trade and took prices up as high as $3.83 per MMBtu. Natural gas settled at $3.82 per MMBtu, or 1.3% higher.

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.2% with one hour remaining in the session. Quarterly earnings were in focus this morning and they will take center stage once again after the closing bell.

More than a hundred companies are expected to report their results this evening with a Dow Jones Transportation Average component-CH Robinson (CHRW 64.76, -0.85)-among the names on the schedule. In addition, investors will hear from American Express (AXP 91.85, -0.01), Amgen (AMGN 124.13, +1.48), and Twitter (TWTR 38.69, +0.76).

Tomorrow morning, Humana (HUM 127.80, -3.13), Philips 66 (PSX 82.92, +0.31), and WellPoint (WLP 112.89, -2.68) will be among the names reporting their earnings.

2:30 pm: [BRIEFING.COM] Range-bound action continues with the S&P 500 (-0.1%) holding near its unchanged level. Meanwhile, the tech-heavy Nasdaq (+0.2%) outperforms.

The Nasdaq has been able to stay ahead of the S&P 500 throughout the session thanks to the relative strength of the technology sector (+0.1%). High-beta chipmakers also outperform, but the PHLX Semiconductor Index has narrowed its gain to 0.1% after being up 0.7% shortly after the start of the session.

Furthermore, biotechnology has also played a part with the iShares Nasdaq Biotechnology ETF (IBB 254.31, +2.40) trading higher by 1.0%. Despite the advance, the biotech ETF is still down 1.0% in July.

2:00 pm: [BRIEFING.COM] The S&P 500 remains anchored to its flat line, which has been the case for the better part of the past two hours. Fittingly, with the index near its unchanged level, five sectors hold gains, while the other five sit in the red.

On the cyclical side, the consumer discretionary sector (+0.3%) continues showing relative strength, while industrials (-0.4%) underperform. Also of note, the energy sector (+0.1%) sports a slim gain even as crude oil trades lower by 0.9% at $100.80/bbl.

Elsewhere, Treasuries have inched up from their recent levels, pressuring the benchmark 10-yr yield to 2.47%.

1:30 pm: [BRIEFING.COM] There isn't much to be gleaned about the market today by simply looking at the standing of the major indices. They are all sporting modest gains, yet they belie what has been a roller-coaster trade.

Good earnings and economic news has been offset in part by some geopolitical headlines with a negative hue. The stock market overall, though, seems to be operating in a wait-and-see mode as it eyes Wednesday's trading session, which will include the advance estimate for second quarter GDP (Briefing.com consensus 3.2%), the ADP Employment Change report for July (Briefing.com consensus 215,000), and the FOMC decision.

Looking elsewhere, the Treasury market has operated in a steadier state today, supported by some safe-haven posturing and a $35 bln 5-yr note auction that was met with strong demand.

Specifically, the auction drew a high yield of 1.72% on a 2.81 bid-to-cover ratio that exceeded the prior 12-auction average of 2.67. The 10-yr note is up four ticks with its yield at 2.47%.

1:00 pm: [BRIEFING.COM] At midday, the Dow Jones Industrial Average (+0.2%), Nasdaq (+0.3%), and S&P 500 (+0.1%) hold slim gains, while the Russell 2000 (+0.6%) outperforms.

Like yesterday, the overnight session was free of any broad developments, which allowed the focus to turn toward the next batch of earnings in the U.S. In general, most of the reports received since yesterday's closing bell have surpassed expectations, but there were a few noteworthy disappointments too.

Despite showing early strength, the indices have been knocked off their highs by news of forthcoming EU sanctions against Russia. The imposition of new sanctions may pique concerns about a boomerang effect on the global economy, and Europe in particular, but it is worth noting that the Russian ruble and Market Vectors Russia ETF (RSX 24.47, +0.12) strengthened in reaction to the news.

Moving to earnings, a pair of Dow components-Pfizer (PFE 30.06, -0.04) and Merck (MRK 59.15, +1.18)-reported better than expected results, but only Merck remains in the green at this time. The health care sector, meanwhile, is higher by 0.3%.

Elsewhere among countercyclical groups, the telecom services sector (+2.8%) has gotten a major boost from news indicating Windstream (WIN 11.81, +1.28) has been cleared by the Internal Revenue Service to spin off its assets into a publically-traded REIT. Other telecom names like AT&T (T 36.72, +1.07) and Verizon (VZ 52.42, +0.84) have also rallied on speculation they could take the same route.

On the cyclical side, the consumer discretionary sector (+0.4%) has drawn strength from Honda Motor (HMC 35.93, +0.75) and retail stocks. The SPDR S&P Retail ETF (XRT 84.76, +0.52) is higher by 0.6%.

Most of the remaining cyclical sectors trade near their flat lines, but industrials (-0.4%) have been pressured by transport stocks after UPS (UPS 99.39, -3.27) reported disappointing earnings and lowered its guidance. The stock, which trades lower by 3.2%, has slid to its 200-day moving average, while the Dow Jones Transportation Average holds a loss of 0.7%.

Treasuries are little changed with the 10-yr yield at 2.48%.

Economic data was limited to the Case-Shiller 20-city Index and the Consumer Confidence report:

The Case-Shiller 20-city Home Price Index for May rose 9.3%, while a 10.0% increase had been expected by the Briefing.com consensus
This followed the previous month's increase of 10.8%
The Conference Board's Consumer Confidence Index spiked to 90.9 in July from an upwardly revised 86.4 (from 85.2), while the Briefing.com consensus pegged the Index at 85.6
Consumer confidence is now at its highest level since October 2007
The Present Situation Index increased to 88.3 from 86.3 and the Expectations Index rose to 92.7 from 86.4

12:30 pm: [BRIEFING.COM] Recent action saw the S&P 500 return to its flat line, while the Dow (+0.1%) and Nasdaq (+0.3%) continue trading ahead of the benchmark index. The market slumped from its high shortly after the reports of upcoming EU sanctions against Russia crossed the wires, but has since recovered a portion of that loss.

Overall, today's narrow trading range and little change in the major indices has been a reflection of a wait-and-see approach that has been employed by participants ahead of potentially market-moving data. On that note, the advance reading of Q2 GDP will be released tomorrow at 8:30 ET (Briefing.com consensus 3.2%), while the FOMC will reveal its latest policy decision at 14:00 ET.

Also of note, Friday morning will feature the release of the July jobs report (consensus 220K).

12:00 pm: [BRIEFING.COM] Equity indices remain near their recent levels with the S&P 500 (-0.1%) trading within three points of its flat line. At this time, the consumer discretionary sector (+0.2%) is the only cyclical group trading in positive territory.

The discretionary sector has benefitted from a 1.3% advance in the shares of Honda Motor (HMC 35.65, +0.47) after the carmaker reported better than expected earnings. Staying in the sector, media names have also shown noteworthy strength. Comcast (CMCSA 55.57, +0.84) and Cablevision (CVC 19.87, +0.77) are higher by 1.5% and 4.0%, respectively.

On the flip side, the industrial sector (-0.6%) is the weakest growth-sensitive group as transport stocks weigh. UPS (UPS 99.10, -3.56) trades down 3.5% after missing earnings estimates and lowering its guidance. The broader Dow Jones Transportation Average holds a loss of 0.9% and is on track to register its fourth consecutive decline.

11:30 am: [BRIEFING.COM] The major averages have taken another step back following the news of forthcoming EU sanctions against Russia. The S&P 500 is now lower by 0.1%, while high-growth names continue showing relative strength as evidenced by modest gains in the Nasdaq Composite (+0.2%) and Russell 2000 (+0.4%).

The tech-heavy Nasdaq has received a measure of support from biotechnology, while chipmakers also trade ahead of the broader market (PHLX Semiconductor Index +0.1%). The iShares Nasdaq Biotechnology ETF (IBB 254.48, +2.57) is higher by 1.0%, while the health care sector (+0.1%) is one of just three groups trading in the red.

Outside of health care, only consumer discretionary (+0.3%) and telecom services (+3.0%) trade in the green.

11:00 am: [BRIEFING.COM] Equity indices have taken a step back from their best levels of the day in reaction to a Reuters report indicating European officials have reached a preliminary deal to introduce sanctions against Russia's oil and defense sectors.

While the agreement has not been made official yet, the announcement is likely to lead to speculation about a potential boomerang effect on the global economy.

According to the reports, the sanctions will be in place for three months before a review is conducted.

Treasuries did not move in reaction to the news with the 10-yr yield remaining at 2.47%.

10:35 am: [BRIEFING.COM]

The dollar index has continued to climb higher this morning and hit a new HoD minutes ago... it's now +0.2% at 81.20
This strength in helping weigh on commodities this morning such as gold, silver, copper and oil.
Crude oil began to sell off in overnight activity and fell as low as $100.32/barrel. Sept crude is now -0.5% at $101.12/barrel
Gold and silver also sold off in recent trade. Aug gold is currently -0.4% at $1298.40/oz, while Sept silver is +0.1% at $20.60/oz
Natural followed as well and is currently -0.3% at $3.74/MMBtu
Sept copper is -0.6% at $3.23/lb this morning.

10:00 am: [BRIEFING.COM] The S&P 500 trades higher by 0.2%, while the Nasdaq Composite (+0.4%) outperforms.

The consumer confidence reading for July came in at 90.9. Economists polled by Briefing.com expected the survey to come in at 85.6. This followed the prior month's revised reading of 86.4 (from 85.2).

9:40 am: [BRIEFING.COM] Equity indices registered early gains with the Russell 2000 (+0.2%) in the lead. The S&P 500 trades higher by 0.1% with three sectors in the green.

The telecom services sector (+4.7%) is a runaway leader thanks to news indicating Windstream (WIN 13.03, +2.50) has received clearance from the Internal Revenue Service to spin off its assets into a publically-traded REIT. Other telecom names like AT&T (T 37.26, +1.61) and Verizon (VZ 53.19, +1.61) have also rallied on speculation they could take the same route.

Outside of telecom services, the next best sector-consumer discretionary-is higher by 0.4%. Automaker Honda Motor Company (HMC 35.54, +0.36) is higher by 1.0% after beating earnings estimates.

Treasuries are on their highs with the 10-yr yield down three basis points at 2.46%.

The Consumer Confidence report for July (Briefing.com consensus 85.6) will cross the wires at 10:00 ET.

9:16 am: [BRIEFING.COM] S&P futures vs fair value: +2.90. Nasdaq futures vs fair value: +6.50. The stock market is on track for a modestly higher start as futures on the S&P 500 trade three points above fair value. Index futures hovered in the red through the majority of the overnight session, but climbed off their lows after European markets opened for action. At this time, indices in Germany, France, and the UK hold gains between 0.6% and 0.9%, while Italy's MIB (+1.1%) outperforms amid strength in bank shares.

Domestically, participants have received another batch of quarterly earnings with Dow components Merck (MRK 58.57, +0.60) and Pfizer (PFE 30.40, +0.30) beating their respective estimates. Corning (GLW 21.50, -0.55), however, is on track for a lower start after missing expectations.

In other corporate news, Windstream (WIN 13.65, +3.11) sports a pre-market gain of 30.1% after announcing plans to spin off its assets into a publically-traded REIT.

Also of note, the Federal Open Market Committee will begin its two-day meeting with a policy statement scheduled to be released tomorrow at 14:00 ET. In all likelihood, the statement will call for another $10 billion taper, reducing the size of monthly asset purchases to $25 billion.

Treasuries are on their highs with the 10-yr yield down three basis points at 2.45%.

9:02 am: [BRIEFING.COM] S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +6.50. The S&P 500 futures trade three points above fair value.

The Case-Shiller 20-city Home Price Index for May rose 9.3%, while a 10.0% increase had been expected by the Briefing.com consensus. This follows the previous month's increase of 10.8%.

8:30 am: [BRIEFING.COM] S&P futures vs fair value: +3.60. Nasdaq futures vs fair value: +8.70. The S&P 500 futures trade four points above fair value.

Markets in Asia ended on a mostly higher note.

In economic data:
Japan's Retail Sales fell 0.6% year-over-year (expected -0.5%, previous -0.4%), while Household Spending dropped 3.0% year-over-year (expected -3.8%, prior -8.0%). Separately, the Unemployment Rate ticked up to 3.7% from 3.5% (consensus 3.5%)
South Korea's Current Account surplus narrowed to $6.32 billion from $7.47 billion
Australia's HIA New Home Sales rose 1.2% month-over-month (previous -4.3%)

------

Japan's Nikkei rallied 0.6% to a six-month high. Nissan Motor gained 1.9% following its earnings beat.
Hong Kong's Hang Seng gained 0.9%, advancing for a sixth straight session, and finishing at levels last seen in November 2010. Property stocks saw robust gains with Sun Hung Kai Properties and Cheung Kong Holdings up 4.4% and 2.9%, respectively.
China's Shanghai Composite added 0.2%, climbing to a seven-month high with shares rallying for the sixth session in a row. Technology shares led with China National Software adding 5.3%.

Major European indices trade higher across the board with Italy's MIB (+1.3%) in the lead.

Economic data was limited:
Germany's Import Price Index ticked up 0.2% month-over-month, as expected (previous 0.0%)
Great Britain's Mortgage Approvals came in at 67,000 (expected 63,000, previous 62,000), while Mortgage Lending rose GBP2.10 billion (consensus GBP1.90 billion, previous GBP2.30 billion). Separately, Net Lending to Individuals increased GBP2.50 billion (expected GBP2.60 billion, previous GBP3.00 billion) and BoE Consumer Credit increased GBP420 million (expected GBP800 million, previous GBP720 million)
Spain's Retail Sales ticked up 0.2% year-over-year (expected 1.1%, previous 0.5%)

------

Great Britain's FTSE is higher by 0.6% with support from GKN. The auto parts supplier has jumped 6.4% after beating earnings estimates. On the flip side, BP is lower by 1.5% after missing revenue estimates. Peer Petrofac holds a loss of 1.0%.
Germany's DAX sports an advance of 0.8%. Financials outperform with Deutsche Boerse and Muenchener Re up 1.9% and 0.7%, respectively.
France's CAC trades up 0.9%. Tire maker Michelin is higher by 3.3% after reporting a 13% increase in its first-half profit. Carmaker Renault holds a loss of 3.1% after disappointing with its sales figures.
Italy's MIB outperforms with a gain of 1.3%. Banca di Milano Scarl, Banco Popolare, BMPS, and Unicredit display gains between 1.5% and 3.2%.

7:59 am: [BRIEFING.COM] S&P futures vs fair value: +2.50. Nasdaq futures vs fair value: +6.20. U.S. equity futures hover near their pre-market highs amid upbeat action overseas. Participants have received another batch of quarterly earnings since yesterday's closing bell with the likes of BP (BP 49.78, -0.86), Pfizer (PFE 30.26, +0.16), Merck (MRK 58.59, +0.62), and UPS (UPS 99.90, -2.76) in focus. The S&P 500 futures trade almost three points above fair value.

Reviewing overnight developments:

Asian markets posted gains. China's Shanghai Composite +0.2%, Japan's Nikkei +0.6%, and Hong Kong's Hang Seng +0.9%
In economic data:
Japan's Retail Sales fell 0.6% year-over-year (expected -0.5%, previous -0.4%), while Household Spending dropped 3.0% year-over-year (expected -3.8%, prior -8.0%). Separately, the Unemployment Rate ticked up to 3.7% from 3.5% (consensus 3.5%)
South Korea's Current Account surplus narrowed to $6.32 billion from $7.47 billion
Australia's HIA New Home Sales rose 1.2% month-over-month (previous -4.3%)
In news:
Despite the decline in retail sales, Bank of Japan member Koji Ishida voiced optimism about the country's economy and said the central bank is ready to make adjustments to its policy if needed

Major European indices trade higher across the board. Germany's DAX +0.5%, Great Britain's FTSE +0.5%, and France's CAC +0.6%. Elsewhere, Italy's MIB +1.1% and Spain's IBEX +0.6%
Economic data was limited:
Germany's Import Price Index ticked up 0.2% month-over-month, as expected (previous 0.0%)
Great Britain's Mortgage Approvals came in at 67,000 (expected 63,000, previous 62,000), while Mortgage Lending rose GBP2.10 billion (consensus GBP1.90 billion, previous GBP2.30 billion). Separately, Net Lending to Individuals increased GBP2.50 billion (expected GBP2.60 billion, previous GBP3.00 billion) and BoE Consumer Credit increased GBP420 million (expected GBP800 million, previous GBP720 million)
Spain's Retail Sales ticked up 0.2% year-over-year (expected 1.1%, previous 0.5%)
Among news of note:
Italy's MIB outperforms amid strength in bank shares. Banca di Milano Scarl, Banco Popolare, BMPS, and Unicredit display gains between 1.5% and 2.6%

In U.S. corporate news:

BP (BP 49.79, -0.85): -1.7% in reaction to below-consensus revenue
Corning (GLW 20.20, -1.85): -8.4% after reporting a one-cent miss on better than expected revenue
Herbalife (HLF 59.94, -7.54): -11.2% after missing the Capital IQ consensus estimate by two cents on below-consensus revenue. Guidance, however, was in line with analyst expectations
Masco (MAS 21.45, +1.18): +5.8% after beating earnings and revenue expectations
Merck (MRK 58.59, +0.62): +1.1% after beating on both metrics
Pfizer (PFE 30.26, +0.16): +0.5% following its one-cent beat on better than expected revenue
UBS (UBS 18.20, -0.12): -0.7% despite reporting better than expected results
UPS (UPS 99.90, -2.76): -2.7% after missing bottom-line estimates and lowering its guidance

The Case-Shiller 20-City Index for May (Briefing.com consensus 10.0%) will be released at 9:00 ET, while July Consumer Confidence (consensus 85.6) will cross the wires at 10:00 ET.

6:30 am: [BRIEFING.COM] S&P futures vs fair value: flat. Nasdaq futures vs fair value: +2.50.

6:30 am: [BRIEFING.COM] Nikkei...15618.07...+88.70...+0.60%. Hang Seng...24640.53...+211.90...+0.90%.

6:30 am: [BRIEFING.COM] FTSE...6802.43...+14.40...+0.20%. DAX...9607.35...+9.20...+0.10%.

U.S. Stocks Fall as Russian Sanctions Overshadow Earnings

By Jacob Barach and Lu Wang Jul 29, 2014 4:40 PM ET

U.S. stocks fell as President Barack Obama announced new sanctions against Russia and warned its actions in Ukraine are “setting back decades of progress,” snuffing out earlier gains led by telephone stocks.

United Parcel Service Inc. slid 3.7 percent after cutting its full-year forecast. Windstream Holdings Inc. surged 12 percent on plans to spin off assets into a publicly traded real estate investment trust. Masco Corp. (MAS) and Merck & Co. gained after reporting earnings that topped analysts’ projections. Twitter Inc. soared 33 percent after the market’s close as second-quarter revenue beat estimates.

The Standard & Poor’s 500 Index (SPX) slipped 0.5 percent to 1,969.95 at 4 p.m. in New York. The Dow Jones Industrial Average lost 70.48 points, or 0.4 percent, to 16,912.11 after earlier in the day gaining as much as 74 points. About 6 billion shares changed hands on U.S. exchanges, up 5.3 percent from the three-month average.

“Geopolitical risk remains a risk,” Dan Veru, chief investment officer at Fort Lee, New Jersey-based Palisade Capital Management, said by phone. The firm oversees $5 billion. “What ultimately makes stocks go higher is earning and earnings are supporting higher valuations in the market.”

The U.S. sanctioned three Russian banks and a state-owned shipbuilder that serves Russia’s navy and oil and gas industry, joining with the European Union in escalating the penalties for Russia over its actions in Ukraine.

The EU curbed Russia’s access to bank financing and advanced technology in its widest-ranging sanctions yet. EU governments agreed to bar Russian state-owned banks from selling shares or bonds in Europe and restricted the export of equipment to modernize the oil industry, a key prop for Russia’s economy, an EU official said.
‘Isolating Itself’

“Russia is once again isolating itself from the international community, setting back decades of progress,” Obama said at the White House. “We can’t, in the end, make President Putin see more clearly; ultimately that’s something President Putin has to do on his own.”

American Express Co. and Newmont Mining Corp. are among S&P 500 companies reporting earnings today. About 78 percent of those that have posted results this season have beaten analysts’ estimates for profit, while 65 percent exceeded sales projections, according to data compiled by Bloomberg.

Profits probably rose 8.2 percent in the second quarter, while sales gained 3.5 percent, according to analyst estimates compiled by Bloomberg.
Consumer Confidence

Economic reports today showed improving consumer sentiment while the housing market remains in a slowdown. The Conference Board’s consumer confidence index rose to 90.9, the highest since October 2007. Residential real-estate prices advanced 9.3 percent in the 12 months ended May, the slowest pace in more than a year, as a lull in the U.S. housing market limits appreciation, according to the S&P/Case-Shiller index of property values in 20 cities.

The Federal Reserve will reduce its monthly purchases for the sixth time to $25 billion from $35 billion after a two-day policy meeting starting today, according to economists surveyed by Bloomberg News. Investors will also get a reading on second-quarter economic growth tomorrow.

Three rounds of monetary stimulus from the central bank have helped propel the five-year bull market, with the S&P 500 almost tripling from 2009.

“Unless something happens dramatically in the Middle East and that’s not our expectation, our sense is that you really need to see a significant change in central bank policy before you start to see markets become a little more nervous and you have a more sustainable selloff,” Arvin Soh, a New York-based portfolio manager with GAM, said by phone. His firm manages more than $120 billion globally. “Certainly we’re expecting more volatility as the year progresses.”
Volatility Index

The Chicago Board Options Exchange Volatility Index (VIX), known as the VIX, rose 5.7 percent to 13.28. The gauge of options costs has jumped 29 percent from a seven-year low this month.

Nine out of the S&P 500’s 10 main industries declined, led by industrial and utility companies. Phone companies jumped 2.2 percent. Verizon Communications Inc. rose 0.8 percent to $51.97 and AT&T Inc. added 2.6 percent to $36.59, among the biggest gains in the Dow.

Windstream jumped 12 percent to $11.83. The company will spin off its fiber and copper networks, as well as other real estate, as a REIT, which will lease use of the assets to Windstream with an initial estimated rent payment of $650 million per year. If state regulators and the Securities and Exchange Commission approve the transaction, it could open the door for the other phone carriers to consider similar deals.
Phone Shares

Frontier Communications Corp. climbed 14 percent to $6.79 and CenturyLink Inc. rallied 5.8 percent to $39.90.

Cable companies, which have their own network assets, also rose on the news. Comcast Corp. increased 0.5 percent to $54.99, and Time Warner Cable Inc. added 0.6 percent to $149.86.

Merck added 1.1 percent to $58.58. The second-biggest U.S. drugmaker reported that net income more than doubled to $2 billion as the company cut costs. Excluding one-time items, second-quarter earnings were 85 cents a share, beating by 4 cents the average analyst projection.

Masco climbed 7.1 percent to $21.71. The installer of home insulation reported second-quarter profit of 32 cents a share, above the 28-cent projection by analysts.
Twitter Rallies

Twitter rallied 33 percent to $51.17 as of 4:36 p.m. in New York. After the market close, the microblogging company said active membership in the second quarter reached 271 million, with year-over-year growth at 24 percent, compared with 25 percent in the prior period. Sales more than doubled to $312.2 million, exceeding the $282.8 million analyst estimate compiled by Bloomberg.

UPS lost 3.7 percent to $98.86 in regular trading. The world’s biggest package shipping company cut its 2014 outlook after reporting earnings of $1.21 a share for the quarter, below forecasts for $1.25 a share.

Herbalife Ltd. (HLF) tumbled 14 percent to $58.35. Excluding some items, the nutrition company posted earnings of $1.55 a share, missing analysts’ estimates by 2 cents. The company also said sales this year will grow by 8.5 percent to 10.5 percent, slower than the range of 10 percent to 12 percent it predicted in April.

Corning Inc. slumped 9.3 percent to $20. Profit missed analysts’ estimates as demand for Gorilla Glass, the hard cover glass used for smartphones and tablets, was weaker than the company expected.

To contact the reporters on this story: Jacob Barach in New York at jbarach1@bloomberg.net; Lu Wang in New York at lwang8@bloomberg.net

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net 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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