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=164Business Hours: 8am - 5pm est (Mon - Fri)
wrbanalysis@gmail.com (24/7)
http://twitter.com/wrbtrader (24/7)
Attachment:
040616-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+7125.00.png [ 95.44 KiB | Viewed 287 times ]
click on the above image to view today's performance verification Price Action Trade Performance for Today: Emini TF ($TF_F) futures @
$0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @
$7125.00 dollars or +142.50 points, Light Crude Oil CL ($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 @ $7125.00 dollarsRussell 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 @
CMEGroupEuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @
CMEGroup Trade Log: All of my trades were posted
real-time in the timestamp ##TheStrategyLab
free 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 in ##TheStrategyLab chat room 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=155&t=2331 Quote:
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 Advance WRB Analysis Tutorial Chapters @
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 Analysis -----> Trade Signals
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). All WRB Analysis Tutorial Chapters 1 - 12 are included in the purchase of the Volatility Trading Report (VTR).
Daily Trading Plan Routine @
http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=289&t=3100 contains brief information about trading plan, market context, brokers, trading time frames, position size management and other discussions.
-----------------------------
Market Context Summaries The below summaries by
Bloomberg,
Briefing,
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 4:15 pm: [BRIEFING.COM] The stock market ended the Wednesday affair on a higher note as the major averages rallied in lockstep with crude oil throughout today's session. Other factors that contributed to today's advance included persistent leadership from the heavily-weighted health care (+2.7%) sector and the FOMC minutes from the March meeting that fell largely in-line with expectations. The Nasdaq Composite (+1.6%) ended its day ahead of both the S&P 500 (+1.1%) and the Dow Jones Industrial Average (+0.6%).
The broader market was able to shake some early risk-off tendencies as investors weighed a rally in crude against the imminent release of the minutes from the FOMC's latest meeting. The energy component extended an early rally following the Department of Energy's weekly inventory report. The report showed that crude oil stockpiles had decreased by 4.93 million barrels, compared to the estimated 3.15 million barrel build. As a result, WTI crude ended its day higher by 5.0% at $37.74/bbl.
On the central bank front, the minutes from the March FOMC meeting indicated that an April rate hike was discussed at the meeting, but ongoing concerns regarding global economic and financial developments warranted a more cautious approach. Meanwhile, the committee produced diverging opinions on whether the recent uptick in inflation was transitory or if it represented a firming trend.
The heavily-weighted health care space (+2.7%) ended its day ahead of commodity-sensitive energy (+2.1%) and the consumer discretionary (+0.9%) sector while countercyclical telecom services (-1.0%) and utilities (-0.1%) were the only two sectors to end beneath their flat lines.
In the heavyweight health care group (+2.7%), biotechnology outperformed as it rebounded from larger year to date losses. The iShares Nasdaq Biotechnology ETF (IBB 285.71, +16.07) ended its day higher by 6.0%. The beleaguered sub-group traded higher with Valeant Pharmaceuticals (VRX 34.17, +5.44). Valeant gained 18.9% after Pershing Square contended that Valeant's assets are not fairly reflected in its stock price. Separately, Allergan (AGN 244.74, +8.19) rebounded 3.5% after yesterday's tumble that followed new policies regarding corporate inversions.
Commodity-sensitive energy (+2.1%) displayed broad based strength, as the sector was the main beneficiary of today's rally in oil. Pipeline companies and independent oil and gas names finished with some of the largest gains in the sector. Conversely, refiners underperformed in the space after gasoline inventories showed a build instead of an expected draw. On that note, Valero Energy (VLO 61.68, -1.46) declined 2.3%.
In the consumer discretionary space (+0.9%), Amazon (AMZN 302.08, +15.94) gained 2.7% after the online retailer announced a new e-reader. On the flipside, the lodging and leisure sub-groups underperformed after Wynn Resorts (WYNN 89.55, -1.37) preannounced revenue results that disappointed investors.
Rail names underperformed in the industrial (+0.2%) group as CSX (CSX 24.85, -0.19), Union Pacific (UNP 78.35, -0.27), and Kansas City Southern (KSU 85.88, -0.70) ended with losses between 0.3% and 0.8%. Elsewhere, machinery companies underperformed following Cummins (CMI 106.43, -1.59) being downgraded to "Neutral" at Buckingham Research.
The U.S. Dollar Index (94.49, -0.25) surrendered its overnight gains as the greenback ended lower against the yen and the euro. The euro gained 0.1% against the dollar and finished at 1.1399. Separately, the dollar/yen pair lost 0.5% (109.77).
The Treasury Complex ended its day off its low as the yield on the 10-yr note rose three basis points to 1.75%.
Today's participation fell in-line with the recent average as more than 844 million shares changed hands on the NYSE floor.
Today's economic data included the weekly MBA Mortgage Index:
The weekly MBA Mortgage Index showed a seasonally adjusted increase of 2.7%.
Tomorrow's economic data will be limited to weekly initial claims (Briefing.com consensus 270k) and Consumer Credit for February (Briefing.com consensus $14.40 billion), which will be released at 8:30 ET and 15:00 ET, respectively.
3:30 pm: [BRIEFING.COM]
The dollar index rallies off its low of the day in afternoon trading, although commodities are largely in the green for the day
Commodities, as measured by the Bloomberg Commodity Index, are up +0.9% at 77.65
Crude oil rallies notably higher and closes near its high of the day after the release of petroleum inventory data
Weekly EIA petroleum inventory data showed a surprise draw of -4.937 mln barrels, compared to expectations for a build of +3.1 mln barrels
Yesterday, API inventory data showed a draw of -4.3 mln barrels, compared to a build of +8.8 mln barrels reported last week
May crude oil futures closed up $1.80 (+5.0%) at $37.74/barrel
Natural gas continues yesterday's downtrend, ending near the low of the day in pit trading
May natural gas futures closed down $0.04 (-2.1%) at $1.91/MMBtu
Weekly EIA natural gas inventory data is scheduled to be released tomorrow at 10:30 am ET
In precious metals, gold saw an initial spike up in the morning before dropping and consolidating lower to end pit trading down on the day
May gold futures closed down $5.80 (-0.5%) at $1224.10/oz
Silver spiked briefly above the previous day's closing price before plummeting sharply and consolidating lower to finish pit trading down on the day
May silver futures closed down $0.05 (-0.3%) at $15.06/oz
Base metal copper traded at parity with the previous day's close most of the afternoon
May copper futures closed flat at $2.14/lb
3:00 pm:
[BRIEFING.COM] The major averages float off their highs as the tech-heavy Nasdaq (+0.9%) leads the S&P 500 (+0.5%) and the Dow Jones Industrial Average (+0.1%).
Six sectors trade in the green with health care (+2.2%) leading energy (+1.4%) and consumer discretionary (+0.5%). On the flipside, countercyclical telecom services (-1.5%) and utilities (-0.7%) trail industrials (-0.3%).
In the consumer staples space (+0.4%), Constellation Brands (STZ 159.00, +7.64) outperforms after reporting top and bottom-line beats for the four quarter. Additionally, the company announced the acquisition of the Prisoner Wine Company's portfolio of brands from Huneeus Vintners. Conversely, beverage names Molson Coors Brewing (TAP 93.24, -0.74) and Monster Beverage (MNST 133.83, -0.78) underperform the space.
On the commodities front, WTI crude ended its day higher by 5.0% at $37.74/bbl while natural gas ended lower by 2.1% at $1.91/MMbtu.
2:30 pm:
[BRIEFING.COM] The Federal Reserve has released its latest policy minutes, providing some insight into the March meeting.
The minutes indicated that the FOMC discussed an April rate hike, but that members were concerned about downside risks in global economic and financial developments. Additionally, the committee voiced apprehension that underlying factors that had led to a sudden downturn in global financial conditions at the beginning of the year had not been completely resolved. Separately, diverging opinion emerged among the committee as members questioned whether the recent uptick in inflation would hold. Finally, the FOMC pointed to an appreciating dollar, sliding commodity prices, and weak overseas activity for continued weakness in manufacturing.
Equities ticked off their highs following the release of the minutes. Currently, the S&P 500 (+0.7%) trades five points off its session high. Meanwhile, the Dollar Index (94.46, -0.16) received a fleeting boost from the minutes with the dollar trimming losses against the euro and the yen. The dollar remains down 0.6% against the yen at 109.66 while the euro/dollar pair trades higher by 0.2% (1.1408).
On the commodities front, gold ended its pit session prior to the release, but briefly plunged to the $1,220.00 level in electronic trading before returning near its pit session close ($1,224.10/ozt).
1:55 pm:
[BRIEFING.COM] The major averages hover near session highs as the Nasdaq Composite (+1.2%) remains ahead of the S&P (+0.8%).
Eight sectors trade in positive territory as health care (+2.3%), energy (+1.9%) and consumer discretionary (+0.7%) lead. On the flipside, countercyclical telecom services (-1.2%) and utilities (-0.5%) sport the only losses.
In the consumer discretionary space (+0.7%), online retail giant Amazon (AMZN 596.86, +10.72) outperforms after the company announced a new e-reader. Elsewhere, travel websites TripAdvisor (TRIP 65.68, +1.72) and Expedia (EXPE 106.82, +2.77) have gained 2.7% apiece. Conversely, lodging and hotel names demonstrate relative weakness after Wynn Resorts (WYNN 88.92, -2.00) preannounced quarterly results that showed below-consensus revenue.
The Treasury complex has inched off its low with the yield on the 10-yr note higher by four basis points at 1.76%.
The FOMC minutes from the March meeting will cross the wires at 14:00 ET and the release will be summarized in our next update.
1:35 pm:
[BRIEFING.COM] The major U.S. indices have continued ticking higher since our latest update, with stocks currently resting just under today's intra-day highs.
A look inside the Dow Jones Industrial Average shows that Pfizer (PFE 32.74, +1.38), Merck & Co (MRK 55.52, +1.28), and Chevron (CVX 94.42, +1.75) are outperforming. Chevron is higher following a Reuters report that France's Engie and Japan's Marubeni are among parties interested in its Asian geothermal energy blocks, which could be valued at around $3 bln, as well as being helped by broad strength in the energy sector as crude oil futures rally following bullish inventory data. Merck is benefiting from a strong session seen in the entire health care sector and was also initiated earlier with a Buy at Societe Generale. Pfizer is leading the Dow after announcing it would in fact terminate its planned $160 bln merger with Allergan (AGN 243.87, +7.32) just two days after the Treasury unveiled new anti-inversion measures aimed directly at their proposed combination. Despite the size of the deal, Pfizer will only be required to pay a $150 mln termination fee to Allergan for reimbursement of expenses associated with the transaction..
Conversely, Traveler's (TRV 115.61, -0.52) is the worst-performing Dow component.
On the heels of today's rally, the DJIA is now flat in April, and up 1.5% year-to-date
1:05 pm:
[BRIEFING.COM] The stock market trades broadly higher at midday as a rebound in the health care space (+1.9%) and an upturn in crude oil lend support to the broader market. Meanwhile, investors set their sights towards the minutes from the latest Federal Open Market Committee meeting, which will be released at 14:00 ET. Currently, the Nasdaq Composite (+1.0%) outperforms the S&P 500 (+0.6%) and the Dow Jones Industrial Average (+0.4%).
Equity indices opened their session on a flat note as investors adopted a defensive posture ahead of the release of the FOMC's latest minutes. The minutes will be scrutinized as investors look to gain insight into how the FOMC, as an aggregate, weighed developments in the U.S. economy and their views of the global economic climate. Furthermore, the minutes may add clarity to the FOMC's thinking given recent diverging rhetoric from Fed speakers. For the time being, a rally in crude oil has been able to bolster the broader market as risk appetite increases.
The energy component was able to extend its lead following the release of the Department of Energy's weekly inventory report. Stockpile data showed that crude oil inventories declined by 4.93 million barrels while the estimate predicted a 3.15 million barrel build. Currently, WTI crude trades higher by 5.2% at $37.76/bbl.
As a result, the energy space (+2.0%) has been able to climb to the top of the leaderboard as the heavily-weighted health care (+2.1%) group keeps pace. The remaining gainers show upticks between 0.3% (financials) and 0.5% (technology). Conversely, countercyclical telecom services (-1.3%) and utilities (-0.6%) lead the downside while industrials (UNCH) hover in the red.
The health care space (+2.1%) outperformed from the onset of the session as a rebound from pharmaceutical name Allergan (AGN 244.00, +7.45) bolstered the beleaguered sector. The pharmaceutical name tumbled yesterday after new policies enacted by the Treasury Department put ifs deal with Pfizer (PFE 32.60, +1.24) in jeopardy. Unsurprisingly, the two health care names have since abandoned their merger plans. Additionally, biotechnology outperforms, evidenced by the 4.6% gain in the iShares Nasdaq Biotechnology ETF (IBB 282.14, +12.50).
In the commodity-sensitive energy space (+2.0%), Halliburton (HAL 36.79, +2.39) and Baker Hughes (BHI 42.55, +3.19) demonstrate relative strength after the companies mutually agreed to contest a lawsuit from the Department of Justice, which seeks to block their proposed merger. Elsewhere in the space, refiners underperform after the latest stockpile data from the EIA showed a larger than expected build in gasoline inventories.
Machinery names underperform in the industrial sector (UNCH) after Cummins (CMI 106.80, -1.22, -1.58) was downgraded at Buckingham Research from "Buy" to "Neutral." Meanwhile, rail companies and major airlines underperform as Union Pacific (UNP 78.19, -0.43) and United Continental (UAL 54.92, -0.66) decline a respective 0.5% and 1.2%.
The U.S. Dollar Index (94.38, -0.25) pared overnight gains as the greenback lost ground to the yen and the euro. The euro has gained 0.3% against the dollar and trades at 1.1416. Separately, the dollar/yen pair has lost 0.6% and trades at 109.69.
The Treasury Complex slipped as the rally in equities continued throughout the morning. As a result, the yield on the 10-yr note has moved from 1.74% (+1 bps) to 1.76% (+4 bps).
Today's economic data included the weekly MBA Mortgage Index, which showed a seasonally adjusted increase of 2.7%.
12:25 pm:
[BRIEFING.COM] The major U.S. indices hover below session highs as the Nasdaq Composite (+0.9%) leads the S&P 500 (+0.6%) and the Dow Jones Industrial Average (+0.4%).
Three sectors trade in the red as countercyclical telecom service (-1.3%) and utilities (-0.6%) trail industrials (-0.1%). Meanwhile, consumer staples (+0.2%) and financials (+0.4%) show the slimmest gains.
In the materials space (+0.5%), heavyweight component Monsanto (MON 86.58, +0.48) was down 2.0% after reporting better than expected earnings on light revenue this morning. However, the stock has been able to recover in the wake of the broader market rally. Meanwhile, CF Industries (CF 29.40, -0.71) has slipped 2.3% after receiving a downgrade at Bank of America/Merrill Lynch from "Buy" to "Neutral." The materials sector has lost 1.4% this week, compared to a 0.8% loss in the broader market.
The Treasury Complex trades at session lows with the yield on the 10-yr rising four basis points to 1.76%.
12:00 pm:
[BRIEFING.COM] The stock market hovers at a fresh session high as the S&P 500 extends its gain to 0.6%. The Nasdaq Composite (+0.9%) remains ahead of the benchmark index.
In front of the pack, health care (+2.0%) and energy (+1.9%) lead while technology (+0.5%) and consumer discretionary (+0.5%) trade neck-and-neck behind the pair.
In the heavily-weighted health care space (+2.0%), Allergan (AGN 246.85, +10.30) demonstrates relative strength, rebounding from yesterday's 14.8% decline. Meanwhile, Allergan's former merger partner and Dow component Pfizer (PFE 32.62, +1.26) is the best performer in the price-weighted index. Separately, Valeant Pharmaceuticals (VRX 33.85, +5.12) outperforms after Pershing Square's quarterly conference call. In the conference call, Pershing contended that Valeant's assets remain larger than the current stock price reflects. Furthermore, the firm stressed the recent milestone of Valeant reviewing its 10-K form. As a result, biotechnology also outperforms.
On the commodities front, WTI crude has extended its gain to 5.1% ($37.71/bbl) while gold has trimmed its loss to 0.1% ($1,228.60/ozt).
11:30 am:
[BRIEFING.COM] The major averages hover beneath their session highs as the S&P 500 (+0.5%) leads the Dow Jones Industrial Average (+0.3%). The benchmark index trades within one point of its session high.
Four sectors remain in the red with telecom services (-1.3%), utilities (-0.3%), industrials (-0.2%), and materials (-0.1%) underperforming.
In the industrial space (-0.2%), machinery names Cummins (CMI 106.44, -1.58) and Eaton (ETN 58.90, -1.49) have declined a respective 1.4% and 2.5%. This comes after Buckingham Research downgraded Cummins to "Neutral" from "Buy." Meanwhile, major airlines and rail names underperform in the Dow Jones Transportation Average (-0.9%). The Transportation Index has surrendered 3.1% thus far in the month of April, compared to a 0.2% decline in the benchmark index.
The U.S. Dollar Index (94.70, +0.07) has slipped back beneath its flat line in recent action. The euro/dollar pair trades flat at 1.1386. Separately, the dollar remains down 0.4% against the yen at 109.95.
11:00 am:
[BRIEFING.COM] The stock market trades at a fresh session high following the Energy Information Administration's latest inventory data. Currently, the Nasdaq Composite (+0.5%) trades ahead of the S&P 500 (+0.3%).
This week's stockpiles showed a draw of 4.93 million barrels compared to the estimate, which predicted a 3.15 million barrel build. For its part, gasoline inventories grew by 1.43 million barrels (expected draw of 0.96 million barrels). Accordingly, WTI crude rallied to new session highs and currently trades higher by 4.3% at $37.43/bbl.
Commodity-sensitive energy (+1.0%) rallied after the news as it extends its lead over consumer discretionary (+0.3%) and consumer staples (+0.3%). In the energy space (+1.0%), Halliburton (HAL 36.38, +1.97) and Baker Hughes (BHI 42.38, +3.01) have gained a respective 5.6% and 7.8% after the companies stated their intention to fight the Department of Justice lawsuit to block their intended merger. Separately, oil and gas refiners underperform following the EIA data, as gasoline inventories disappointed investors. On that note, Phillips 66 (PSX 83.47, -1.34) and Marathon Petroleum (MPC 35.17, -1.11) have declined 1.6% and 2.9%, respectively.
10:55 am: [BRIEFING.COM]
The dollar index drops in morning trade; this does not appear to be weighing on commodities
Commodities, as measured by the Bloomberg Commodity Index, are up +0.3% at 77.21
Crude oil rallies +4% to $37.41/barrel after the release of EIA inventory data
EIA petroleum inventory data showed a draw of -4.937 mln barrels compared to expectations for a build of +2.9-3.3 mln barrels
May crude oil futures are currently up $1.47 (+4%) at $37.41/barrel
API data released yesterday showed a draw of -4.3 barrels, compared to last week's build of +8.8 mln barrels
Natural gas has been trading in negative territory all morning, extending yesterday's losses and solidifying the move below $2.00/MMBtu
May natural gas futures are down -1.5% at $1.92/MMBtu
EIA natural gas inventory data is scheduled to be released tomorrow at 10:30 am ET
In precious metals, gold initially rallied to trade near its pit session high of the day before trending lower
June gold futures are currently down $7.00 (-0.6%) at $1222.90/oz
Silver spikes up in morning trade but is still trading modestly below yesterday's closing price
May silver futures are currently down $0.09 (-0.6%) at $15.02/oz
Base metal copper stays relatively flat in morning trade
May copper futures are flat at $2.14/lb
10:00 am:
[BRIEFING.COM] The S&P 500 (+0.1%) floats four points above its session low as it outpaces the Dow Jones Industrial Average (-0.1%).
The heavily-weighted health care space (+1.0%) has extended its lead as it outperforms energy (+0.5%) and consumer staples (+0.2%) on the top of the board.
In the Dow Jones Transportation Average (-1.3%), all twenty components trade in the red with airline names demonstrating relative weakness. JetBlue (JBLU 19.57, -0.51) outpaces the losses in the sub-group as it declines 2.5%.
On the economic front, the Energy Information Administration's weekly stockpile data will be released at 10:30 ET. The inventories are expected to show a build of 3.15 million barrels in crude stockpiles compared to last week's 2.29 million barrel build. Meanwhile, gasoline inventories are expected to fall 0.96 million barrels compared to last week's 2.51million barrel draw. At this juncture, WTI crude trades higher by 2.5% at $36.80/bbl.
9:45 am:
[BRIEFING.COM] The stock market opened on a mixed note as the Nasdaq Composite (+0.2%) outpaced the gains in the S&P 500 (UNCH) and the Dow Jones Industrial Average (-0.2%).
Four sectors opened in the green with health care (+0.7%) and energy (+0.4%) leading the upside. Conversely, telecom services (-1.3%) and industrials (-0.6%) round out the board. The remaining decliners show losses between 0.1% (consumer discretionary) and 0.4% (financials).
In the health care space (+0.6%), biotechnology demonstrates relative strength, evidenced by the 1.4% gain in the iShares Biotechnology ETF (IBB 2273.44, +3.80). On the flipside, the Dow Jones Transportation Average has declined 0.9%.
The U.S. Dollar Index (94.63, +0.00) tumbled to its flat line at the open as the euro and the yen gain against the greenback. The euro/dollar pair trades higher by 0.1% at 1.1394 while the dollar has lost 0.3% against the yen and trades at 110.05.
On the commodities front, WTI crude trades higher by 2.9% at $36.91/bbl while gold has slipped 0.5% to $1,223.60/ozt.
9:17 am: [BRIEFING.COM] S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: +7.60.
The stock market is on track for a flat open as the S&P 500 futures hover two points above fair value. Futures have retreated from their highs as investors brace for the release of the latest FOMC Minutes. The minutes from the March 15-16 meeting will be released at 14:00 ET and investors will be looking for insight into how the FOMC members, as a collective, weighed recent developments in the U.S. economy and their views on the global economic situation. Investors will be also be looking for clarity from the FOMC given the recent divergence between Fed speakers. On that note, the minutes follow recent dovish remarks from Fed Chair Janet Yellen, which advocated a slower path to interest rate normalization. Interestingly, Chair Yellen will be speaking tomorrow at 17:30 ET along with former Fed chairs Ben Bernanke, Alan Greenspan, and Paul Volcker.
Separately, lackluster top-line results from Monsanto (MON 85.27, -1.37) and lowered first quarter guidance from Cree (CREE 23.54, -5.51) have likely dampened investor sentiment.
Elsewhere in company specific news, Pfizer (PFE 31.79, +0.43) and Allergan (AGN 230.88, -5.67) have announced that they will abandon their proposed merger following tax inversion policy changes by the U.S. Treasury Department. Pfizer has agreed to pay Allergan $150 million for reimbursement of merger expenses, as stipulated in the merger agreement.
On the commodities front, WTI crude trades higher by 2.5% ($36.80/bbl) after the American Petroleum Institute's weekly inventory report showed a draw of 4.30 million barrels of crude oil, compared to the anticipated 2.90 million barrel build. Meanwhile, the Energy Information Administration will release its latest stockpile data at 10:30 ET and is expected to report that crude inventories increased by 3.15 million barrels.
The U.S. Dollar Index (94.80, +0.17) has trimmed its overnight gain as the greenback loses momentum against the euro and the yen. The dollar has lost 0.2% against the yen and trades at 110.14 while the euro/dollar pair trades lower by 0.1% at 1.1370.
8:56 am: [BRIEFING.COM] S&P futures vs fair value: +2.80. Nasdaq futures vs fair value: +9.00.
The S&P 500 futures trade three points above fair value.
Equity markets across the Asia-Pacific region ended the midweek session on a mixed note with China's Shanghai Composite (-0.1%) settling just below its flat line after the release of a better than expected Caixin Services PMI (52.0; expected 51.4). Furthermore, a former People's Bank of China researcher argued in favor of infrastructure investment due to the Chinese economy's sound fiscal state.
In economic data:
China's March Caixin Services PMI 52.2 (consensus 51.4; last 51.2)
Hong Kong's March Manufacturing PMI fell to 45.5 from 46.4
Japan's February Leading Index 99.8 (expected 99.9; last 101.8) and February Coincident Indicator -3.2% month-over-month (last 2.9%)
India's Nikkei Services PMI rose to 54.3 from 51.4
---Equity Markets---
Japan's Nikkei shed 0.1% with losses in sectors like financials (-0.6%) and energy (-0.5%) overshadowing gains in utilities (+1.0%) and health care (+0.2%). Panasonic, Dai-ichi Life Insurance, Shinsei Bank, Chiba Bank, and Dentsu lost between 1.3% and 3.2%. On the upside, Kansai Electric Power, Pioneer, Toshiba, and JFE Holdings advanced between 1.8% and 3.5%.
Hong Kong's Hang Seng added 0.2% with Want Want China, Wharf Holdings, Bank of East Asia, Sands China, and Tencent Holdings gaining between 1.5% and 2.9%. A handful of financials struggled with HSBC, Bank of China, Ping An Insurance, and China Life Insurance surrendering between 0.6% and 1.7%.
China's Shanghai Composite slipped 0.1%. China Merchants Energy Shipping lost 0.5%, Pang Da Automobile surrendered 0.3%, while China Petroleum & Chemical climbed 2.1%.
Major European indices have spent the first half of the session inside relatively narrow ranges. UK's FTSE (+0.5%) outperforms while Germany's DAX (-0.3%) lags.
Economic data was limited:
Eurozone Retail PMI fell to 49.2 from 50.1
Germany's February Industrial Production -0.5% month-over-month (expected -1.8%; last 2.3%)
UK's Housing Equity Withdrawal -GBP9.50 billion (expected -GBP9.20 billion; previous -GBP9.70 billion)
---Equity Markets---
Germany's DAX trades down 0.3% amid weakness in exporters. BMW, Daimler, Continental, and Volkswagen show losses between 1.1% and 1.7%. Financials have had a better showing as Commerzbank and Deutsche Bank show gains close to 1.2%.
France's CAC is higher by 0.3% with roughly half of its components trading higher. Sanofi, Technip, and Nokia lead with gains between 1.0% and 1.4% while bank shares are mixed. Societe Generale and BNP Paribas hold respective gains of 0.6% and 0.3% while Credit Agricole surrenders 0.4%.
UK's FTSE has climbed 0.6% thanks to support from health care names. AstraZeneca, Shire, GlaxoSmithKline, and Hikma Pharmaceuticals are among the leaders with gains between 1.4% and 2.9%.
8:31 am: [BRIEFING.COM] S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +13.40.
The S&P 500 futures trade five points above fair value.
On the corporate front, Constellation Brands (STZ 156.47, +5.11) has gained 3.4% in pre-market after reporting top and bottom-line beats for the fourth quarter. Additionally, the company announced that it will acquire The Prisoner Wine Company's portfolio of brands from Huneeus Vintners. Elsewhere in corporate earnings, Monsanto (MON 85.46, -1.18) trades lower by 1.4% after reporting in-line earnings on light revenue. The company reaffirmed its earnings guidance for the full year despite noting continuing global headwinds, including the strong dollar. Separately, Wynn Resorts (WYNN 90.55, -0.37) has dipped 0.4% after pre-announcing its first quarter results ahead of today's analyst meeting. Wynn sees its top line falling near the low end of analysts' estimates.
The U.S. Dollar Index (94.94, +0.31) has gained ahead of the release of the FOMC Minutes from the March meeting. The euro has surrendered 0.3% against the dollar and trades at 1.1351 while the dollar/yen pair trades higher by 0.1% at 110.39.
8:02 am: [BRIEFING.COM] S&P futures vs fair value: +7.00. Nasdaq futures vs fair value: +17.90.
U.S. equity futures trade higher with the S&P 500 futures floating seven points above fair value.
Futures rose overnight as investors digested better than expected stockpile data from the American Petroleum Institute. The API's weekly inventory showed that crude stockpiles declined by 4.30 million barrels compared to the anticipated 2.90 million barrel build. Currently, WTI crude trades higher by 2.9% ($36.94/bbl) ahead of the Department of Energy's weekly inventories, which will be released at 10:30 ET. Separately, the Fed will release minutes from its March 15-16 FOMC meeting at 14:00 ET. Investors will be looking for clues to how the FOMC, as an aggregate, was gauging the U.S. economy, the overall global outlook, and the likely future path of the fed funds rate. Equity market have enjoyed a huge rally since mid-February and that was helped in part by the accommodating tone of the Fed. If today's minutes strike a hawkish tone the policy divergence trade may see an upswing.
The Treasury complex trades lower with the yield on the 10-yr note higher by three basis points at 1.75%.
Elsewhere, the weekly MBA Mortgage Index showed a seasonally adjusted increase of 2.7%.
In corporate news of note:
Cree (CREE 23.45, -5.60): -19.3% after lowering its third quarter guidance below analysts' estimates
Allergan (AGN 234.28, -2.27): -1.0% following Pfizer (PFE 31.75, +0.39) and the company confirming that they will terminate their planned merger
Cisco Systems (CSCO 27.95, +0.37): +1.3% after receiving an upgrade at JP Morgan from "Underweight" to "Neutral" and a price target increase from $17.00 to $27.50
Mattel (MAT 32.00, -1.08): -3.3% following a downgrade at Stifel from "Buy" to "Hold"
Reviewing overnight developments:
Asian-Pacific indices ended their session on a mixed note with Hong Kong's Hang Seng +0.2%, China's Shanghai Composite -0.1%., and Japan's Nikkei -0.1%.
In economic data:
China's March Caixin Services PMI 52.2 (consensus 51.4; last 51.2)
Hong Kong's March Manufacturing PMI fell to 45.5 from 46.4
Japan's February Leading Index 99.8 (expected 99.9; last 101.8) and February Coincident Indicator -3.2% month-over-month (last 2.9%)
India's Nikkei Services PMI rose to 54.3 from 51.4
In news:
A former People's Bank of China researcher argued in favor of infrastructure investment due to the Chinese economy's sound fiscal state.
European indices trade on a mixed note with the U.K.'s FTSE +0.8%, France's CAC +0.5%, and Germany's DAX +0.1%.
Economic data was limited:
Eurozone Retail PMI fell to 49.2 from 50.1
Germany's February Industrial Production -0.5% month-over-month (expected -1.8%; last 2.3%)
UK's Housing Equity Withdrawal -GBP9.50 billion (expected -GBP9.20 billion; previous -GBP9.70 billion)
5:55 am: [BRIEFING.COM] S&P futures vs fair value: +9.80. Nasdaq futures vs fair value: +25.60.
5:55 am: [BRIEFING.COM] Nikkei...15715...-17.50...-0.10%. Hang Seng...20207...+29.70...+0.20%.
5:55 am: [BRIEFING.COM] FTSE...6122.35...+31.10...+0.50%. DAX...9561.76...-1.60...0.00%.
Special thanks to Bloomberg, Briefing, Reuters and Yahoo! Finance for their market summaries. ![good morning gm](./images/smilies/emoticonhello.gif)
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M.A. Perry
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WRB Analysis (wide range body/bar analysis)
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