TheStrategyLab.com Price Action Trading Support Forum

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)


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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $180.00 dollars or +1.80 points, Emini ES ($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 @ $180.00 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=133&t=1873


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.

##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

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

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).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=244&t=2455

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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.


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

Yahoo! Finance

4:15 pm: [BRIEFING.COM] The stock market ended the Thursday session on a modestly lower note, but a late-morning rebound lifted the indices off their lows. The S&P 500 shed 0.2% with seven sectors ending in the red.

This morning, European equities and U.S. futures slumped around 6:00 ET after Ukraine's President Petro Poroshenko was quoted as saying Russian forces have invaded an area southeast of Donetsk. The news pressured the markets, but a brief uptick took place after a correction to reports indicated Ukraine's President did not use the word "invade," but rather said Russian troops "entered" Ukraine. The change in wording did not change the fact that Russian troops are reportedly on Ukraine's soil, which caused a flight to safety. As a result, Germany's 10-yr Bunds rallied, dropping the yield to a new record low of 0.87% before a slight rebound to 0.89%. Gold futures were also in demand with the metal climbing 0.7% to $1291.70/ozt.

Similarly, U.S. Treasuries saw demand in the morning, but the 10-yr note surrendered a portion of its gain as the session wore on. The 10-yr note added five ticks to send its yield lower by two basis points to 2.34%.

All ten sectors displayed losses at the start, but materials (+0.04%), telecom services (unch) and utilities (+0.7%) were able to recover before the close. The materials sector benefitted from strength among miners with Market Vectors Gold Miners ETF (GDX 26.46, +0.35) gaining 1.3%.

Meanwhile, the remaining sectors ended in the red, but only financials (-0.4%) and industrials (-0.3%) settled behind the broader market. Even though the financial sector underperformed, today's loss narrowed its August gain to 3.5% versus a 3.4% advance for the S&P 500. Bank of America (BAC 16.01, -0.19) was the weakest performer among the majors, sliding 1.2%.

Elsewhere, the top-weighted sector-technology (-0.2%)-was pressured by influential components like Facebook (FB 73.86, -0.77), Google (GOOGL 580.32, -2.68), and Oracle (ORCL 41.27, -0.37), while the largest sector member-Apple (AAPL 102.25, +0.12)-posted a modest gain. Chipmakers also displayed strength with the PHLX Semiconductor Index climbing 0.3%.

Once again, participation in today's affair was well below average with just 479 million shares changing hands at the NYSE floor, which undercut Monday's total for the lowest tally of the year. The lack of activity reflected the preference to stick to the sidelines ahead of a three-day weekend that could bring new developments on the geopolitical front.

Economic data included the second revision to Q2 GDP, Initial Claims, and the Pending Home Sales report:

Second quarter GDP was revised up to 4.2% in the second estimate from 4.0% in the advance estimate, while the Briefing.com consensus expected no revisions
Most notably, real final sales grew at a much faster rate in the second quarter (2.8%) than what was originally reported (2.3%)
Personal consumption spending was left unrevised at 2.5%
The initial claims level fell to 298,000 from an upwardly revised 299,000 (from 298,000), while the Briefing.com consensus pegged the claims level at 302,000
Pending home sales for July rose 3.3%, which was better than the 0.5% increase forecast by the Briefing.com consensus
The reading followed last month's revised decrease of 1.3% (from -1.1%)

Tomorrow, Personal Income/Spending Data and Core PCE Prices for July will be reported at 8:30 ET, while the Chicago PMI for August (Briefing.com consensus 54.8) will cross the wires at 9:45 ET. The day's data will be topped off with the 9:55 ET release of the final reading of the Michigan Sentiment Survey for August (expected 80.0).

Nasdaq Composite +9.1% YTD
S&P 500 +8.0% YTD
Dow Jones Industrial Average +3.0% YTD
Russell 2000 +0.3% YTD

3:40 pm: [BRIEFING.COM]

Copper futures ended today's session at its LoD, ended 5 cents lower at $3.13/lb
Gold and silver consolidated in afternoon activity.
Dec gold closed $7 higher at $1283.50/oz, while Sept silver rose $0.11 at $19.52/oz
WTI crude oil inched higher in today's session, ending $0.62 higher at $94.51/barrel (Oct contract)
Natural gas recovered off its LoD, moving back above $4/MMBtu, ending at $4.04/MMBtu, up 4 cents.

3:00 pm: [BRIEFING.COM] The S&P 500 holds a three-point loss with one hour remaining in the trading day.

There hasn't been much change among the ten sectors as two influential groups-financials (-0.4%) and industrials (-0.3%)-continue to weigh, while utilities (+0.6%) and materials (+0.1%) outperform.

Tomorrow's session will represent the final trading day of August with the S&P 500 looking to maintain its monthly gain of 3.5%.

Participants will receive a handful of economic data tomorrow with July Personal Income (Briefing.com consensus 0.3%), Personal Spending (consensus 0.1%), and core PCE Prices data (expected 0.1%) set to be released at 8:30 ET, while the Chicago PMI for August (consensus 54.8) will cross the wires at 9:45 ET. The day's data will be topped off with the 9:55 ET release of the final reading of the Michigan Sentiment survey for August.

2:30 pm: [BRIEFING.COM] Not much change in the major averages as they continue holding slim gains. Equity indices have spent the first three hours of action in a steady climb off their lows, but the last two hours have turned into a sideways drift.

The financial sector (-0.4%) remains at the bottom of the leaderboard, while other decliners hover closer to their flat lines. On the upside, the utilities sector (+0.6%) is the only outperformer of note. Including today's gain, the utilities sector is higher by 3.6% this month and up 12.2% year-to-date.

2:00 pm: [BRIEFING.COM] Subdued afternoon action continues with the S&P 500 (-0.1%) drifting not far below its flat line.

Even though the benchmark index has erased the bulk of its early decline, market breadth at the NYSE remains tilted to the downside with 1.4 declining issues for each advancer. Meanwhile at the Nasdaq, decliners outpace advancers by a 1.8:1 ratio.

Elsewhere, Treasuries have erased a portion of their gains with the 10-yr yield narrowing its decline to two basis points at 2.34%.

1:30 pm: [BRIEFING.COM] The S&P 500 (-0.1%) continues trading within three points of its flat line with just one more trading day remaining in August. All in all, it has been a good month for the benchmark index, which is on track to register a monthly gain of 3.5%. The Dow has lagged a little (+3.2% month-to-date), but the Nasdaq Composite and Russell 2000 have shown relative strength. The two indices sport respective month-to-date gains of 4.4% and 4.3%.

With regard to the ten economic sectors, only the telecom services space is on course for an August loss (-1.8%), while the other nine groups sport August gains between 1.4% (energy) and 4.4% (consumer staples and consumer discretionary).

1:00 pm: [BRIEFING.COM] At midday, the major averages hold modest losses with the S&P 500 trading lower by 0.1%. Other indices have not fared much better as the Dow Jones Industrial Average (-0.2%) and Russell 2000 (-0.3%) trail the benchmark index.

European equities and U.S. futures slumped in the early morning after Ukraine's President Petro Poroshenko was quoted as saying Russian forces have invaded an area southeast of Donetsk. The news rolled the markets, but there was a brief uptick after a correction to reports indicated Ukraine's President did not use the word "invade," but rather said Russian troops "entered" Ukraine. Despite the change in wording, the news of an incursion translated into demand for Germany's 10-yr Bunds, dropping the yield to a new record low of 0.87% before a slight rebound to 0.89%.

The news contributed to a lower start for U.S. equities, but it is important to note that some profit taking was likely in order following a 4.2% rally for the S&P 500 over the past three weeks. Furthermore, seven sectors hold midday losses, but only two-industrials (-0.2%) and technology (-0.1%)-have surrendered their week-to-date gains.

The industrial sector is the second-weakest performer at this time with defense contractors and transport stocks contributing to the decline. The PHLX Defense Index is lower by 0.4%, while the Dow Jones Transportation Average holds a loss of 0.3% with all but four components trading in the red.

Similarly, the financial sector (-0.3%) sits at the bottom of the leaderboard, while most of the remaining sectors hover much closer to their flat lines. On the upside, the utilities sector (+0.3%) is the top performer, while energy (unch) and materials (+0.1%) follow a bit behind.

Also of note, the technology sector remains in the red, but chipmakers have shown relative strength with the PHLX Semiconductor Index trading higher by 0.2%. Including the uptick, the index is higher by 5.3% since the end of July.

Finally, it is worth mentioning that the first three trading days of the week saw an average daily volume of 490 million, and given the current total (211 million), today's session is likely to produce a similar final tally.

Economic data included the second revision to Q2 GDP, Initial Claims, and the Pending Home Sales report:

Second quarter GDP was revised up to 4.2% in the second estimate from 4.0% in the advance estimate, while the Briefing.com consensus expected no revisions
Most notably, real final sales grew at a much faster rate in the second quarter (2.8%) than what was originally reported (2.3%)
Personal consumption spending was left unrevised at 2.5%
The initial claims level fell to 298,000 from an upwardly revised 299,000 (from 298,000), while the Briefing.com consensus pegged the claims level at 302,000
Pending home sales for July rose 3.3%, which was better than the 0.5% increase forecast by the Briefing.com consensus
The reading followed last month's revised decrease of 1.3% (from -1.1%)

12:25 pm: [BRIEFING.COM] Market participants are marking time and so are a lot of other people as the three-day Labor Day weekend approaches. Accordingly, there isn't much conviction today.

The major indices reflect downside pressure, yet there aren't any extreme readings in the A/D line at either the NYSE or the Nasdaq. Yes, decliners lead advancers at the NYSE and Nasdaq by a healthy margin, but it's nowhere close to some of the readings seen in the past when there is real fear in the market.

Participants don't like the headlines coming out of Ukraine today, but if nothing else, they have certainly provided an easy rationale to take some profits following a three-week run that has seen the S&P 500 gain nearly 5.0%.

The most striking move of the day, however, is in the euro area sovereign bond markets, which continue to rally. The yield on the German bund has dipped to 0.88% (began the year near 1.95%) ahead of next week's ECB meeting. The yield on the 10-yr Treasury note, meanwhile, has dropped to 2.33% (began the year just above 3.00%) as it continues to benefit from the interest rate differential trade.

12:00 pm: [BRIEFING.COM] The S&P 500 (-0.2%) has spent the better part of the past hour in a two-point range. There has been a dearth of trading activity this week with the first three sessions generating the three lowest volume totals of the year.

The first three trading days of the week saw an average daily volume of 490 million, and considering only 177 million shares have changed hands so far, today's session is likely to produce a similar final tally.

In all likelihood, the added uncertainty on the geopolitical front has factored into lack of activity.

11:30 am: [BRIEFING.COM] The S&P 500 (-0.3%) remains near its recent levels, while the Dow Jones Industrial Average (-0.4%) and Russell 2000 (-0.5%) underperform.

Even though nine sectors trade below their flat lines, only two groups have surrendered their week-to-date gains. Industrials and technology hold respective week-to-date losses of 0.5% and 0.2%, while the other eight sectors are up between 0.1% (consumer discretionary) and 1.2% (energy) for the week. For its part, the S&P 500 has narrowed its weekly gain to 0.3%.

Despite today's underperformance, the Dow sports a comparable gain to the benchmark index, while the Russell 2000 has added 0.6% so far this week.

11:00 am: [BRIEFING.COM] The major indices have reclaimed a portion of their losses, but the S&P 500 remains lower by 0.2% with eight sectors showing losses.

Cyclical sectors displayed broad weakness at the start, but a couple growth-sensitive groups have overtaken the S&P 500 since then. Consumer discretionary (-0.3%), financials (-0.5%), industrials (-0.3%), and technology (-0.3%) continue trailing the broader market, while energy (+0.1%) and materials (-0.2%) trade in-line or ahead of the broader market.

Notably, the energy sector has benefitted from higher oil prices as crude futures trade higher by 0.7% at $94.53/bbl. Elsewhere, miners have factored into the relative strength of the materials space. The Market Vectors Gold Miners ETF (GDX 26.31, +0.20) sports an advance of 0.8%, while gold futures trade higher by 0.5% at $1298.60/ozt.

10:35 am: [BRIEFING.COM]

Oct nat gas was around $4/MMBtu just ahead of its weekly storage data
Following the data, Oct NG spiked to a new HoD after a smaller-than-expected build was reported
Oct nat gas is now +1.2% at $4.05/MMBtu
Gold and silver have been sliding lower off highs. Dec gold is currently +0.5% at $1289.60/oz, Sept silver is +0.6% at $19.53/oz
Sept copper, however, just hit a new LoD at $3.12/lb. Copper is now -1.7% at $3.12/lb
Oct crude oil is +0.3% at $94.20/barrel
Dollar index is +0.1% at 82.54

10:00 am: [BRIEFING.COM] The S&P 500 trades lower by 0.3%.

Just reported, pending home sales for July rose 3.3%, which was better than the 0.5% increase forecast by the Briefing.com consensus. Today's reading followed last month's revised decrease of 1.3% (from -1.1%).

9:40 am: [BRIEFING.COM] As expected, the major averages began the trading day in negative territory. The S&P 500 trades lower by 0.5% with nine sectors showing early losses.

Overall, the six cyclical groups are a bit weaker than the four defensively-oriented sectors. Consumer discretionary (-0.6%), financials (-0.6%), industrials (-0.6%) and technology (-0.5%) are among the notable underperformers, while health care (-0.2%) and utilities (+0.2%) trade a bit ahead of the broader market.

The early losses have caused participants to seek volatility protection as evidenced by a jump in the CBOE Volatility Index (VIX 12.58, +0.80), which has spiked to its highest level since August 18.

Similarly, Treasuries have been in demand with the 10-yr note (+9/32) sitting on its high with the benchmark yield down four basis points at 2.32%.

July Pending Home Sales (Briefing.com consensus -1.1%) will be released at 10:00 ET.

9:14 am: [BRIEFING.COM] S&P futures vs fair value: -9.30. Nasdaq futures vs fair value: -15.00. The stock market is on track for a lower open as futures on the S&P 500 trade nine points below fair value. Index futures have spent the night in the red and slumped to lows just before 6:00 ET after Ukraine's President Petro Poroshenko was quoted as saying Russian forces have invaded an area southeast of Donetsk. The news sent global equities to lows, but there was a brief uptick after a correction to reports indicated Ukraine's President did not use the word "invade," but rather said Russian troops "entered" Ukraine. The concern over the situation has translated into demand for Germany's 10-yr Bunds, dropping the yield to a new record low of 0.87%.

U.S. Treasuries have also been in demand. The 10-yr note holds a seven-tick gain with its yield down three basis points at 2.34%.

On the economic front, participants have received some upbeat news with Q2 GDP seeing a revision up to 4.2% from 4.0%, while the Briefing.com consensus expected no change from the advance reading. While the headline increase was modest, real final sales grew at a much faster clip in the second quarter than originally expected. Real final sales were revised up to 2.8% from an originally reported 2.3% in the advance estimate.

With regard to corporate news, a few more retailers have released their quarterly results that have been mixed. Abercrombie & Fitch (ANF 41.55, -2.45), Guess? (GES 23.60, -2.04), and Williams-Sonoma (WSM 66.74, -8.15) are indicated to open lower after disappointing with their earnings and/or revenue, while Signet Jewelers (SIG 114.03, +6.00) is on course for an upbeat start after beating revenue estimates.

The Pending Home Sales report for July (Briefing.com consensus -1.1%) will be released at 10:00 ET.

8:58 am: [BRIEFING.COM] S&P futures vs fair value: -8.40. Nasdaq futures vs fair value: -13.00. The S&P 500 futures trade eight points below fair value.

Asian markets ended the session on a mostly lower note.

In economic data:
Australia's HIA New Home Sales fell 5.7% month-over-month (prior 1.2%), while Private New Capital Expenditure increased 1.1% quarter-over-quarter (consensus -0.3%; prior -2.5%)
Hong Kong's Retail Sales fell 3.1% year-over-year (expected -2.5%; last -6.9%)

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Japan's Nikkei lost 0.5%, sliding to a one-week low. Exporters continued to see profit-taking with Toyota Motor and Komatsu down 0.9% and 0.6%, respectively.
Hong Kong's Hang Seng slid 0.7% to register its third consecutive decline. Real Estate Developers were pressured as China Overseas Land & Investment fell 3.1% and China Resources Land gave up 2.7%.
China's Shanghai Composite fell 0.6% to a three-week low as the wave of upcoming IPOs sparked selling. Energy shares outperformed with Sinopec advancing 1.5%.

Major European indices trade lower across the board with the bulk of the slide coming after Ukraine's President Petro Poroshenko was quoted as saying Russian forces have invaded an area southeast of Donetsk. The news sent markets to lows around 6:00 ET, but a portion of that loss has been recovered after a correction to reports indicated Ukraine's President did not use the word "invade," but rather said Russian troops "entered" Ukraine. Participants have shown safe-haven demand with a strong bid for Germany's 10-yr Bunds dropping the yield to a new record low of 0.87%.

Economic data was plentiful:
Eurozone Business and Consumer Survey fell to 100.6 from 102.1 (expected 101.5). Loan creation remained problematic as M3 Money Supply expanded 1.8% year-over-year (expected 1.5%; prior 1.6%), while Private Loans fell 1.6% (consensus -1.5%; last -1.8%)
Germany's Claimant Count increased by 2,000 (expected -5,000; prior -11,000), while the Unemployment Rate held steady at 6.7%, as expected
Great Britain's CBI Distributive Trades Survey jumped to 37 from 21 (expected 27)
Italy's Retail Sales were unchanged month-over-month (expected -0.2%; prior -0.6%), while Business Confidence fell to 95.7 from 99.1 (expected 99.3)
Spain's GDP growth was left unrevised at 0.6% quarter-over-quarter, as expected. Separately, CPI fell 0.5% (expected -0.2%; last -0.3%)

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Great Britain's FTSE is lower by 0.2% with miners on the defensive. Anglo American, Antofagasta, and Rio Tinto are down between 2.0% and 3.5%. Consumer names outperform with Diageo and WM Morrison Supermarkets up 0.4% and 1.8%, respectively.
In France, the CAC holds a loss of 0.5% with 38 of its 40 components in the red. Financials are among the laggards with BNP Paribas, Credit Agricole, and Societe Generale down between 0.8% and 2.2%. Essilor International has jumped 4.6% in reaction to better than expected results.
Germany's DAX trades down 1.2%. Adidas and Deutsche Lufthansa weigh with respective losses of 2.3% and 3.2%, while Fresenius Medical Care leads with a gain of 0.7%.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: -6.30. Nasdaq futures vs fair value: -9.00. The S&P 500 futures trade six points below fair value.

The second estimate of second quarter GDP pointed to an expansion of 4.2%, up from the 4.0% increase observed in the preliminary reading. The upwardly revised increase is higher than the 4.0% growth that economists polled by Briefing.com had expected. The fourth quarter GDP Deflator was revised up to 2.1% from 2.0%.

The latest weekly initial jobless claims count totaled 298,000, while the Briefing.com consensus expected a reading of 302,000. Today's tally was below the revised prior week count of 299,000 (from 298,000). As for continuing claims, they rose to 2.527 million from 2.502 million.

8:02 am: [BRIEFING.COM] S&P futures vs fair value: -7.90. Nasdaq futures vs fair value: -11.30. U.S. equity futures hold losses amid cautious action overseas. The S&P 500 futures trade eight points below fair value with the bulk of the weakness coming after Ukraine's President Petro Poroshenko was quoted as saying Russian forces have invaded an area southeast of Donetsk. The news sent futures to lows around 6:00 ET, but a portion of that loss has been recovered after a correction to reports indicated Ukraine's President did not use the word "invade," but rather said Russian troops "entered" Ukraine. The change to the wording gave futures a two-point boost off the lows.

On the economic front, weekly Initial Claims (Briefing.com consensus 302,000) and the second estimate of Q2 GDP (expected 4.0%) will be released at 8:30 ET, while the Pending Home Sales report for July (consensus 0.5%) will cross the wires at 10:00 ET.

Treasuries hold gains with the 10-yr yield down two basis points at 2.34%.

In U.S. corporate news of note:

Abercrombie & Fitch (ANF 41.30, -2.70): -6.1% after its disappointing revenue and light comparable store sales masked better than expected earnings.
Dollar General (DG 63.00, -0.70): -1.1% following in-line results.
Guess? (GES 23.30, -2.34): -9.1% after missing estimates and guiding below consensus.
Rock-Tenn (RKT 57.64, +9.65): +20.1% after reporting better than expected results.
Signet Jewelers (SIG 108.56, +0.53): +0.5% after beating revenue estimates.
Williams-Sonoma (WSM 67.05, -7.84): -10.5% after its below-consensus guidance overshadowed in-line earnings.
Workday (WDAY 91.25, +0.95): +1.1% in reaction to better than expected results and guidance.

Reviewing overnight developments:

Asian markets ended lower. Japan's Nikkei -0.5%, China's Shanghai Composite -0.6%, and Hong Kong's Hang Seng -0.7%
In economic data:
Australia's HIA New Home Sales fell 5.7% month-over-month (prior 1.2%), while Private New Capital Expenditure increased 1.1% quarter-over-quarter (consensus -0.3%; prior -2.5%)
Hong Kong's Retail Sales fell 3.1% year-over-year (expected -2.5%; last -6.9%)
In news:
Property-related stocks remained under pressure in China with Vanke falling 1.5%.

Major European indices trade lower across the board. Great Britain's FTSE -0.4%, France's CAC -0.8%, and Germany's DAX -1.4%. Elsewhere, Spain's IBEX -1.3% and Italy's MIB -1.7%
Economic data was plentiful:
Eurozone Business and Consumer Survey fell to 100.6 from 102.1 (expected 101.5). Loan creation remained problematic as M3 Money Supply expanded 1.8% year-over-year (expected 1.5%; prior 1.6%), while Private Loans fell 1.6% (consensus -1.5%; last -1.8%)
Germany's Claimant Count increased by 2,000 (expected -5,000; prior -11,000), while the Unemployment Rate held steady at 6.7%, as expected
Great Britain's CBI Distributive Trades Survey jumped to 37 from 21 (expected 27)
Italy's Retail Sales were unchanged month-over-month (expected -0.2%; prior -0.6%), while Business Confidence fell to 95.7 from 99.1 (expected 99.3)
Spain's GDP growth was left unrevised at 0.6% quarter-over-quarter, as expected. Separately, CPI fell 0.5% (expected -0.2%; last -0.3%)
Among news of note:
The confusion surrounding a Russian incursion into Ukraine has caused participants to seek safety. A strong bid for Germany's 10-yr Bunds has dropped the yield to a new record low of 0.87%. Germany's 10-yr yield has inched up to 0.89% since notching a low during the past two hours.

6:34 am: [BRIEFING.COM] S&P futures vs fair value: -9.00. Nasdaq futures vs fair value: -14.50.

6:34 am: [BRIEFING.COM] Nikkei...15,459.86...-75.00...-0.50%. Hang Seng...24,741.00...-177.80...-0.70%.

6:34 am: [BRIEFING.COM] FTSE...6,801.83...-28.80...-0.40%. DAX...9,450.07...-122.10...-1.30%.

Bloomberg

http://www.bloomberg.com/news/2014-08-2 ... -data.html

U.S. Stocks Drop as Ukraine, Retail Earnings Offset GDP

U.S. stocks fell, sending the Standard & Poor’s 500 Index below 2,000, as violence in Ukraine and disappointing retail earnings overshadowed data showing the economy expanded more than estimated.

Williams-Sonoma Inc. tumbled 12 percent after its third-quarter earnings forecast missed analysts’ estimates. Abercrombie & Fitch Co. (ANF) declined 4.8 percent as second-quarter sales fell more than analysts had projected. Guess? Inc. sank 8.8 percent after the retailer cut its annual earnings forecast. Signet Jewelers Ltd. (SIG), which operates Zales and Kay Jewelers, climbed 7.7 percent after reporting earnings that beat estimates.

The S&P 500 (SPX) dropped 0.2 percent to 1,996.74 at 4 p.m. in New York, ending a three-day advance. The Dow Jones Industrial Average slid 42.44 points, or 0.3 percent, to 17,079.57. The Nasdaq 100 Index retreated 0.2 percent for the first loss in 12 sessions. About 4.2 billion shares changed hands on U.S. exchanges, the lowest for a full day of trading this year.

“Whenever you push through big levels like the 2,000 mark you get some profit-taking, which normal at this point, that’s a big milestone to push through,” Jeff Kravetz, the Phoenix-based regional investment director at US Bank’s Private Client Reserve, said via phone.
Photographer: Alexander Khudoteply/AFP via Getty Images

Members of Ukrainian volunteer battalion Dnipro stand in a truck covered in steel... Read More

The U.S. equity index has rebounded about 4.6 percent from a three-month low on Aug. 7 on speculation the Federal Reserve will keep interest rates low as the economy strengthens. The S&P 500 closed above 2,000 for the first time on Aug. 26.
Economic Expansion

The U.S. economy expanded more than previously forecast in the second quarter, propelled by the biggest gain in business investment in more than two years. Gross domestic product rose at a 4.2 percent annualized rate, up from an initial estimate of 4 percent and following a first-quarter contraction, Commerce Department figures showed.

Other reports showed contracts to purchase previously owned homes rose more than forecast in July. The number of Americans filing for unemployment benefits was little changed last week near the lowest level in seven year.

“If you look at unemployment claims that should suggest we’ll get a very nice healthy payroll number next Friday,” Wilmer Stith, a Baltimore-based money manager at Wilmington Trust Investment Managers, said via phone. “This patchwork of broader and deeper economic expansion is well under way in the United States.”

Russian President Vladimir Putin discussed in a phone call with Italian Prime Minister Matteo Renzi the need to halt the bloodshed in Ukraine, Putin’s office said in e-mailed statement. Ukrainian President Petro Poroshenko pledged to step up the country’s defenses against what he earlier called a “de facto” Russian incursion after separatists gained ground in intensified .
Geopolitical Events

The five months of unrest have sparked the worst standoff between Russia and its former Cold War foes in two decades and unleashed sanctions on both sides. Violence surged a day after Putin and Poroshenko met in Minsk, Belarus. Putin hailed the talks as a step toward peace, though he said cease-fire terms weren’t discussed because Russia isn’t a party to the conflict.

“These geopolitical events tend to be transitory, where the market may drop over the short-term but then tends to recover pretty quickly,” Bob Landry, executive director and portfolio manager at San Antonio-based USAA Investment Management Co., said via phone. He helps manage $22.3 billion.
Light Volume

The U.S. stock market is seeing the slowest trading in at least six years as investors leave for vacation before Labor Day. Volume has been below 5 billion shares over the past eight days, the longest streak in data compiled by Bloomberg going back to 2008.

“There’s going to be light volume going into a holiday regardless, but now you have these geopolitical concerns that are playing into that as well,” Landry said.

The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, rose for a second day, gaining 2.3 percent to 12.05. The gauge has lost 29 percent this month, poised for the biggest drop in two years.

Signet jumped 7.7 percent to $116.37, the highest ever, after reporting second-quarter earnings that beat analysts’ estimates and predicted same store sales growth in the third quarter.

Williams-Sonoma slid 12 percent to $65.93. The seller of cookware and home furnishings forecast third-quarter earnings of 58 cents to 63 cents a share. The average analyst projection in a Bloomberg survey was for 66 cents.
Retail Earnings

Abercrombie fell 4.8 percent to $41.87. The company is struggling to compete with fast-fashion companies such as Forever 21 and Hennes & Mauritz AB, which have won over teens with their ability to react to trends quickly.

Guess lost 8.8 percent to $23.38. Full-year adjusted profit will be $1.05 to $1.20 a share, lower than its May forecast of $1.40 to $1.60.

Whole Foods Market Inc. (WFM) slid 1.6 percent to $39.19. Kurt Frederick, an analyst at Wedbush Securities Inc., initiated coverage of the stock with a neutral rating.

RadioShack Corp. shares jumped 31 percent, the third straight day of double-digit gains, to $1.43 on speculation that the company will get a rescue financing package that helps it stave off bankruptcy.

Repros Therapeutics (RPRX) jumped 19 percent to $21.58, the highest since January, after data released yesterday showed the company’s testosterone treatment Androxal was superior to AbbVie’s on market topical gel, AndroGel, in secondary hypogonadism.

To contact the reporters on this story: Oliver Renick in New York at orenick2@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 Jeff Sutherland

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

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M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader @ http://stocktwits.com/wrbtrader

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