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 Post subject: Feb 28th Weds Price Action Trade Result - No Trades
PostPosted: Thu Mar 01, 2018 4:41 am 
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The Market at 04:30PM ET
Dow: -380.83… | Nasdaq: -57.35… | S&P: -30.45…
NASDAQ Vol: 2.3 bln… Adv: 811… Dec: 2153…
NYSE Vol: 1.1 bln… Adv: 846… Dec: 2117…

Moving the Market

Selling accelerates after S&P 500 slips below its 50-day simple moving average (2737)

Crude oil drops after EIA reports build of 3.0 million barrels; energy sector underperforms

Treasury yields back away from multi-year highs

Sector Watch
Strong: Consumer Discretionary, Technology, Utilities, Real Estate
Weak: Industrials, Energy, Materials, Health Care

04:30PM ET

[BRIEFING.COM] Stocks tumbled on Wednesday, with the bulk of the losses coming in the final hour of trading. The S&P 500 dropped 1.1%, moving below its 50-day simple moving average (2736) for the first time this week. The Nasdaq Composite (-0.8%) held up slightly better, while the Dow Jones Industrial Average (-1.5%) did slightly worse.

The major averages opened with modest gains, but retreated to their flat lines about an hour into the session. The S&P 500 then dipped into the red, but bounced back after hitting its 50-day simple moving average. However, the benchmark index broke through the key technical level on its second attempt, which further accelerated the selling.

Losses were broad on Wednesday, with 11 of 11 S&P 500 sectors finishing in negative territory.

The energy sector was the weakest group (-2.3%), moving in tandem with the price of crude oil after the Department of Energy's weekly crude oil inventory report showed that U.S. inventories rose by 3.0 million barrels last week; West Texas Intermediate crude futures dropped 2.1% to $61.66 per barrel. Shale leader EOG Resources (EOG 101.42, -5.52) was among the worst-performing energy names, dropping 5.2%, despite beating earnings and revenue estimates for the fourth quarter.

Meanwhile, the heavily-weighted health care sector (-1.6%) also finished behind the broader market, with Celgene (CELG 87.12, -8.66) leading the retreat. The biotechnology giant dropped 9.0%, settling at its lowest level in more than three years, after receiving a Refusal to File letter from the FDA regarding its multiple sclerosis drug ozanimod.

At the opposite end of the sector standings, the consumer discretionary group (-0.5%) outperformed, thanks in part to TJX (TJX 82.68, +5.37), which jumped 7.0% after reporting better-than-expected earnings and revenues for the fourth quarter and raising its profit guidance. Conversely, home improvement retailer Lowe's (LOW 89.59, -6.20) dropped 6.5% after missing fourth quarter earnings estimates and lowering its profit guidance.

The lightly-weighted real estate sector was the top-performing group with a slim loss of 0.1%.

In the bond market, U.S. Treasuries rallied on Wednesday, sending yields lower; the benchmark 10-yr yield dropped four basis points to 2.87%. Meanwhile, the 2-yr yield finished flat at 2.26%, but touched its highest level since September 2008 (2.28%) in intraday trading.

In currencies, the U.S. Dollar Index advanced 0.3% to 90.58, hitting its highest level in six weeks.

Reviewing Wednesday's batch of economic data, which included the second estimate of fourth quarter GDP, the Chicago PMI for February, Pending Home Sales for January, and the weekly MBA Mortgage Applications Index:

The second estimate of fourth quarter GDP pointed to an expansion of 2.5% (Briefing.com consensus +2.5%). The first estimate came in at +2.6% last month.
Real final sales, which exclude the change in private inventories, were revised up to 3.3% from 3.2%. The fourth quarter growth rate was the best since the second quarter of 2015.
The Chicago PMI for February hit 61.9 (Briefing.com consensus 64.5), down from 65.7 in January.
Pending Home Sales decreased 4.7% in January (Briefing.com consensus +0.4%). Today's reading follows an unrevised 0.5% increase in December.
The weekly MBA Mortgage Applications Index increased 2.7% to follow last week's 6.6% decline.

On Thursday, investors will receive a slew of economic reports, including Personal Income (Briefing.com consensus +0.3%) and Spending (Briefing.com consensus +0.2%) for January at 8:30 AM ET, the PCE Price Index (Briefing.com consensus +0.4%) and the core PCE Price Index (Briefing.com consensus +0.3%) for January at 8:30 AM ET, weekly Initial Claims (Briefing.com consensus 227K) at 8:30 AM ET, the ISM Index for February (Briefing.com consensus 58.4) at 10:00 AM ET, and Construction Spending for January (Briefing.com consensus +0.3%) at 10:00 AM ET.

In addition, Fed Chairman Jerome Powell will appear before the Senate Banking Committee, wrapping up his semiannual monetary policy testimony, and February auto and truck sales will be released throughout the day.

Nasdaq Composite: +5.4% YTD
S&P 500: +1.5% YTD
Dow Jones Industrial Average: +1.3% YTD
Russell 2000: -1.5% YTD

Dow: -380.83… | Nasdaq: -57.35… | S&P: -30.45…
NASDAQ Adv/Dec 811/2153. …NYSE Adv/Dec 846/2117.

03:40PM ET
[BRIEFING.COM]

Overall, commodities, as measured by the Bloomberg Commodity Index, are down 0.5% at 88.1409
Dollar index is currently up 0.3% at 90.58
Mar WTI crude settled -$1.35 at $61.66/barrel on the day
In other energy, Mar natural gas settled -$0.01 at $2.67/MMBtu
Metals: Apr gold rose $0.40 to $1319.00/oz, while Mar silver lost $0.03 to $16.40/oz
Mar copper dropped $0.06 to $3.13/lb
Finally, agriculture: Mar corn rose $0.02 at $3.81/bu. Mar soy is up $0.05 at $10.55/bu
Mar wheat rose $0.16 at $4.93/bu.

Dow: -193.99… | Nasdaq: -9.44… | S&P: -11.48…
NASDAQ Adv/Dec 1034/1904. …NYSE Adv/Dec 1065/1870.

02:55PM ET

[BRIEFING.COM] The S&P 500 is back to its flat line (2744) with one hour of trading to go. Traders will be keeping an eye on the S&P 500's 50-day simple moving average (2737), which provided support to the benchmark index at its lowest mark of the day. The S&P 500 has been up as much as 0.6% and down as much as 0.2% in today's session.

Sectors are pretty evenly split between green and red this afternoon. The energy group (-1.1%) has been drifting lower as of late, hitting a new session low. The group has moved in tandem with the price of crude oil, which is approaching its session low; West Texas Intermediate crude futures are down 1.9% at $61.84 per barrel in electronic trade after closing pit trading at $61.66 per barrel (-2.1%). Today's slide was prompted by the weekly EIA crude inventory report, which showed a build of 3.0 million barrels.

Looking ahead, Salesforce (CRM 117.51, +1.04), Monster Beverage (MNST 64.03, -0.14), L Brands (LB 49.63, +1.45), and Mylan (MYL 40.86, -0.25) are all scheduled to report earnings following today's closing bell.
Dow: -97.20… | Nasdaq: +15.60… | S&P: -1.93…
NASDAQ Adv/Dec 920/1627. …NYSE Adv/Dec 1275/1663.

02:35PM ET

[BRIEFING.COM] Despite a modest advance today, the major averages will likely close lower for the month; in the final trading session of February, the S&P 500 holds a month-to-date loss of about 2.4%, the Dow Jones Industrial Average is down 2.7%, and the Nasdaq Composite is lower by about 0.4%.

A slight uptick in buying at the top of the hour has the market slightly off intraday highs. Comments from bond guru Bill Gross came ahead of the buying.

Mr. Gross suggested that he sees two to three rate hikes in 2018, which is less than the three to four hikes that the market is currently anticipating. However, Treasury yields haven't moved much since Mr. Gross' comments, with the 10-yr yield continuing to hover about four basis points below its flat line at 2.88%.
Dow: +39.05… | Nasdaq: +42.62… | S&P: +10.96…
NASDAQ Adv/Dec 1209/1369. …NYSE Adv/Dec 1502/1420.

02:00PM ET

[BRIEFING.COM] The S&P 500 is holding steady above its flat line this afternoon, hovering in the middle of the three major averages, with a gain of about 0.3%.

Outperforming the broader market today, the information technology (+0.8%) sector now holds gains of about 15.5% during the last 52 weeks. The widely-held FAANG stocks (most of which are IT names) all trade higher to this point on Wednesday; the five sport gains between 0.2% and 1.5%. Specifically, both Amazon (AMZN 1521.11, +9.13) and Apple (AAPL 179.76, +1.37) have notched fresh all-time highs today.

Meanwhile, gold futures for April delivery settled roughly flat, ticking up $0.40 to $1319/oz. The US Dollar Index (90.59, +0.23) also trades slightly higher today, up about 0.3%.
Dow: +7.61… | Nasdaq: +52.37… | S&P: +8.25…
NASDAQ Adv/Dec 1283/1310. …NYSE Adv/Dec 1556/1342.

01:35PM ET

[BRIEFING.COM] The major U.S. indices continue to fluctuate around their base levels as stocks lack conviction following yesterday's steep sell-off that was driven by testimony from Fed Chair Chairman Jerome Powell, which signaled to many investors that the Fed could raise interest rates four times this year.

A look inside the Dow Jones Industrial Average shows that United Technologies (UTX 136.24, +2.33), Cisco (CSCO 45.69, +0.65), Microsoft (MSFT 95.42, +1.22) are outperforming. United Technologies is leading the Dow higher following reports from CNBC that activist investor Bill Ackman (Pershing Square) has taken a small stake in the company.

Conversely, General Electric (GE 14.21, -0.29) is the worst-performing Dow component as shares again display relative weakness and are poised to close out another month of losses, making that 12 straight monthly declines.

A current levels, the DJIA is up 0.48% this week.
Dow: +3.59… | Nasdaq: +35.85… | S&P: +6.67…
NASDAQ Adv/Dec 1306/1332. …NYSE Adv/Dec 1519/1369.

12:55PM ET

[BRIEFING.COM] Stocks are struggling for direction this afternoon as investors keep an eye on the S&P 500's 50-day simple moving average (2737), which the benchmark index tested, and found support at, about an hour ago. The S&P 500 has been up as much as 0.6% and down as much as 0.2%, but is currently higher by 0.3%.

Seven of eleven S&P 500 sectors are trading in the green, with the consumer discretionary space (+0.7%) being among the top performers. Within the group, TJX (TJX 84.02, +6.71) has rallied 8.7%, hitting a new all-time high, after reporting better-than-expected earnings and revenues for the fourth quarter and raising its profit guidance. Conversely, Lowe's (LOW 90.73, -4.89) has dropped 5.1% after missing fourth quarter earnings estimates and lowering its profit guidance.

At the opposite end of the sector standings, the heavily-weighted health care space (-0.5%) is struggling. Celgene (CELG 87.47, -8.31) is leading the retreat, dropping 8.7%, after the biotech giant received a Refusal to File letter from the FDA regarding its multiple sclerosis drug ozanimod.

The energy sector (-0.3%) is also trading behind the broader market amid a decline in the price of crude oil; West Texas Intermediate crude futures are down 0.7% at $62.62 per barrel. The commodity dropped from its flat line, losing as much as 2.0%, after the Energy Information Administration reported that U.S. crude oil inventories increased 3.0 million barrels last week. The consensus estimate called for a draw of around 1.6 million barrels.

Meanwhile, in the bond market, U.S. Treasuries have bounced back following yesterday's sell off, sending yields mostly lower; the yield on the 10-yr note is down three basis points at 2.88%. The 2-yr yield is currently trading flat at 2.26%, but hit its highest level since 2008 (2.28%) earlier in the session.

In currencies, the U.S. Dollar Index is up 0.2% at 90.50, which marks a six-week high.

Reviewing Wednesday's batch of economic data, which included the second estimate of fourth quarter GDP, the Chicago PMI for February, Pending Home Sales for January, and the weekly MBA Mortgage Applications Index:

The second estimate of fourth quarter GDP pointed to an expansion of 2.5% (Briefing.com consensus +2.5%). The first estimate came in at +2.6% last month.
Real final sales, which exclude the change in private inventories, were revised up to 3.3% from 3.2%. The fourth quarter growth rate was the best since the second quarter of 2015.
The Chicago PMI for February hit 61.9 (Briefing.com consensus 64.5), down from 65.7 in January.
Pending Home Sales decreased 4.7% in January (Briefing.com consensus +0.4%). Today's reading follows an unrevised 0.5% increase in December.
The weekly MBA Mortgage Applications Index increased 2.7% to follow last week's 6.6% decline.

Dow: +28.81… | Nasdaq: +37.47… | S&P: +8.27…
NASDAQ Adv/Dec 1424/1236. …NYSE Adv/Dec 1601/1275.

12:25PM ET

[BRIEFING.COM] The major averages are drifting near their unchanged marks.

U.S. Treasuries are mostly higher today, bouncing back from yesterday's sell off. The 10-yr yield, which moves inversely to the price of the 10-yr Treasury note, has tumbled three basis points to 2.88%. Meanwhile, the 2-yr yield is flat at 2.26%, but hit its highest level since September 2008 (2.28%) earlier in the session.

In currencies, the yen has jumped 0.7% against the dollar to 106.62, but the euro has slipped 0.2% against the greenback to 1.2212, its lowest level since January 18.
Dow: -27.28… | Nasdaq: +11.56… | S&P: +1.78…
NASDAQ Adv/Dec 1221/1473. …NYSE Adv/Dec 1445/1436.

11:55AM ET

[BRIEFING.COM] The S&P 500 (unch) has dipped into the red in recent trading, but found support at its 50-day simple moving average (2737).

Six sectors are trading in negative territory--health care (-0.6%), materials (-0.6%), industrials (-0.5%), energy (-0.5%), consumer staples (-0.3%), and telecom services (-0.2%)--while five are trading in the green--technology (unch), financials (+0.1%), utilities (+0.2%), consumer discretionary (+0.4%), and real estate (+0.8%).

In Europe, the major bourses finished Wednesday on a lower note; the UK's FTSE lost 0.7%, while Germany's DAX and France's CAC dropped 0.4% apiece.
Dow: -39.33… | Nasdaq: +2.39… | S&P: -0.56…
NASDAQ Adv/Dec 1057/1654. …NYSE Adv/Dec 1308/1559.

11:25AM ET

[BRIEFING.COM] The major averages have continued drifting lower and now trade just a tick above their unchanged marks.

After lagging on Tuesday, the consumer discretionary space (+0.5%) is at the top of today's sector standings. Within the group, TJX (TJX 83.36, +6.04) has rallied 7.7%, hitting a new all-time high, after reporting better-than-expected earnings and revenues for the fourth quarter and raising its profit guidance. Conversely, Lowe's (LOW 89.95, -5.84) has dropped 6.1% after missing fourth quarter earnings estimates and lowering its profit guidance.

Retailers are outperforming in general, evidenced by the SPDR S&P Retail ETF (XRT 45.99, +0.42), which is up 1.0%.
Dow: +1.40… | Nasdaq: +13.10… | S&P: +2.90…
NASDAQ Adv/Dec 1142/1596. …NYSE Adv/Dec 1329/1516.

10:55AM ET

[BRIEFING.COM] Equity indices have slipped from session highs in recent trading, with the S&P 500 trimming its gain to 0.3% from 0.6%.

The Department of Energy's weekly crude inventory report showed that U.S. crude stockpiles increased 3.0 million barrels last week, while estimates called for a decrease of around 1.6 million barrels. West Texas Intermediate crude futures were flat ahead of the EIA release, but now trade lower by 1.1% at $62.32 per barrel.

Meanwhile, the energy sector has moved in tandem with the commodity; the sector was up 0.4% ahead of the release and is now down 0.2%.
Dow: +46.72… | Nasdaq: +23.37… | S&P: +6.85…
NASDAQ Adv/Dec 1410/1312. …NYSE Adv/Dec 1470/1338.

10:30AM ET

[BRIEFING.COM] Commodities begin the day slightly higher:

Overall, commodities, as measured by the Bloomberg Commodity Index, are up 0.09% at 88.6723
Dollar index is currently up 0.35% at 90.68
Mar WTI crude is down 0.76% on the day.
Crude oil inventories had a build of 3 mln barrels
Futures are $0.48 lower to $62.53/barrel.
In other energy, Mar natural gas is up $0.01 at $2.69/MMBtu
Metals:
Apr gold lost $0.50 and trades at $1318.10/oz, while Mar silver gained $0.01 to $16.44/oz
Mar copper dropped 0.05 to $3.14/lb
Finally, agriculture:
Mar corn is up $0.05 at $3.84/bu.
Mar soy is up $0.08 at $10.58/bu.
Mar wheat is up $0.19 at $4.96/bu.

Dow: +156.4… | Nasdaq: +49.25… | S&P: +16.46…
NASDAQ Adv/Dec 1603/1133. …NYSE Adv/Dec 1677/1111.

10:05AM ET

[BRIEFING.COM] The major averages have doubled their opening gains, with the S&P 500 now higher by 0.6%.

Just released, Pending Home Sales decreased 4.7% in January (Briefing.com consensus +0.4%). Today's reading follows an unrevised 0.5% increase in December.
Dow: +155.85… | Nasdaq: +45.94… | S&P: +16.23…
NASDAQ Adv/Dec 1599/1140. …NYSE Adv/Dec 1687/994.

09:50AM ET

[BRIEFING.COM] The major averages are sporting gains of around 0.3% apiece.

Nine of eleven S&P 500 sectors are trading in the green, with financials (+0.4%) and technology (+0.5%) being the top performers and health care (-0.3%) being the weakest.

Just in, Chicago PMI for February hit 61.9 (Briefing.com consensus 64.5), down from 65.7 in January.
Dow: +88.02… | Nasdaq: +22.65… | S&P: +7.08…
NASDAQ Adv/Dec 1616/1058. …NYSE Adv/Dec 1668/964.

09:10AM ET
[BRIEFING.COM] S&P futures vs fair value: +11.00. Nasdaq futures vs fair value: +41.00.

The S&P 500 futures are pointing towards a higher open, trading 11 points, or 0.4%, above fair value.

In corporate news, Lowe's (LOW 88.60, -8.04) is down 8.3% in pre-market trading after missing fourth quarter earnings estimates and lowering its profit guidance for fiscal year 2019, and Celgene (CELG 89.83, -5.95) is down 6.2% after receiving a Refusal to File letter from the FDA regarding its multiple sclerosis drug ozanimod.

Conversely, TJX (TJX 83.25, +5.91) is up 7.6% in pre-market trading after reporting better-than-expected earnings and revenues for the fourth quarter and raising its profit guidance for both the first quarter and fiscal year 2019.

On the data front, the second estimate of fourth quarter GDP crossed the wires earlier this morning, pointing to an expansion of 2.5%, as expected. The first estimate came in at +2.6% last month. The weekly MBA Mortgage Applications Index was also released earlier, showing an increase of 2.7% to follow last week's 6.6% decline.

The Chicago PMI for February (Briefing.com consensus 64.5) will be released at 9:45 AM ET, and Pending Home Sales for January (Briefing.com consensus +0.4%) will be released at 10:00 AM ET.

In the bond market, U.S. Treasuries are mixed this morning. The yield on the 2-yr note is up two basis points at 2.28%, hitting its highest level since September 2008, while the yield on the benchmark 10-yr note is lower by two basis points at 2.89%.

Meanwhile, West Texas Intermediate crude futures are up 0.1% at $62.04 per barrel after the American Petroleum Institute reported on Tuesday evening that U.S. crude inventories rose 0.9 million barrels last week. The official government figures will be released at 10:30 AM ET.

08:50AM ET
[BRIEFING.COM] S&P futures vs fair value: +7.30. Nasdaq futures vs fair value: +36.00.

The S&P 500 futures are trading seven points, or 0.3%, above fair value.

Equity indices in the Asia-Pacific region ended the midweek session on a lower note, following Wall Street's lead. China's Manufacturing and non-Manufacturing PMI readings missed estimates, but they were quickly excused as the result of the timing of the Lunar New Year holiday. The Bank of Japan reduced its daily purchases of JGBs with tenors of more than 25 years and central bank Governor Haruhiko Kuroda reminded that the easing is meant to reach the elusive 2.0% inflation target. The Bank of Korea is expected to raise rates in May or July.

In economic data:
China's February Manufacturing PMI 50.3 (expected 51.4; last 51.3) and non-Manufacturing PMI 54.4 (expected 55.0; last 55.3)
Japan's January Housing Starts -13.2% year-over-year (expected -4.5%; last -2.1%). January Construction Orders +0.9% year-over-year (last -8.1%). January Industrial Production -6.6% month-over-month (expected -4.1%; last 2.9%). January Retail Sales +1.6% year-over-year (expected 2.6%; last 3.6%)
India's February Nikkei Markit Manufacturing PMI 52.1 (expected 52.8; last 52.4). January Infrastructure Output +6.7% year-over-year (last 4.0%)
South Korea's March Manufacturing BSI Index 79 (last 80)
Australia's January Private Sector Credit +0.3% month-over-month (expected 0.4%; last 0.3%)
New Zealand's February ANZ Business Confidence -19.0 (last -37.8). January External Migration & Visitors -0.5% (last 3.9%)
Hong Kong's Q4 GDP +3.4% year-over-year (last 3.7%)

---Equity Markets---

Japan's Nikkei lost 1.4%. Yahoo Japan tumbled 6.8% after Altaba acknowledged plans to sell its stake in the company. DOWA Holdings, Kubota, Hitachi Construction, Hino Motors, Credit Saison, Fast Retailing, Ebara, Yamaha Motor, Komatsu, and Isuzu Motors posted losses between 2.3% and 3.4%.
Hong Kong's Hang Seng also fell 1.4%. Property names and financials were among the laggards with China Overseas, China Resources Land, Sino Land, ICBC, Bank of China, Ping An Insurance, China Construction Bank, Bank of East Asia, and Hang Lung Properties losing between 1.5% and 3.6%.
China's Shanghai Composite slid 1.0%. Easysight Supply Chain Management, Lotus Health Group, Huayu Automotive Systems, Sichuan Swellfun, and Harbin Pharmaceutical Group surrendered between 3.1% and 4.7%.
India's Sensex ended lower by 0.5%. Financials like ICICI Bank, AXIS Bank, Yes Bank, HDFC Bank, Kotak Mahindra Bank, and IndusInd Bank posted losses between 0.5% and 1.9%. Infosys outperformed, gaining 2.3%.

Major European indices trade near their flat lines. Germany's Unemployment rate (5.4%) remained at a post-reunification low while CPI readings from France and Italy were cooler than expected. Germany's acting Finance Minister Peter Altmaier said that stern fiscal orthodoxy will be maintained even if an SPD member is named the next finance minister. On the Brexit front, there is renewed uncertainty about the post-Brexit future of the Irish border.

In economic data:
Eurozone February CPI +1.2% year-over-year, as expected (last 1.3%). Core CPI +1.0% year-over-year, as expected (last 1.0%)
Germany's February Unemployment Change -22,000 (expected -15,000; last -25,000) and February Unemployment Rate 5.4%, as expected (last 5.4%). March GfK Consumer Climate 10.8 (expected 10.8; last 11.0)
France's February CPI -0.1% month-over-month (expected 0.3%; last -0.1%). January PPI +0.1% month-over-month (last 0.0%). Q4 GDP +0.6% quarter-over-quarter, as expected (last 0.6%) and January Consumer Spending -1.9% month-over-month (expected 0.5%; last -1.2%)
Italy's February CPI +0.1% month-over-month (expected 0.3%; last 0.3%); +0.6% year-over-year (expected 0.7%; last 0.8%)
Spain's December Current Account surplus EUR2.64 billion (last EUR3.04 billion)
Swiss February ZEW Expectations 25.8 (last 34.5). February KOF Leading Indicators 108.0 (expected 106.2; last 107.6)

---Equity Markets---

UK's FTSE is up 0.1%. Travis Perkins, ITV, and Taylor Wimpey have given up between 4.6% and 8.0% in reaction to disappointing results. Miners also lag with Rio Tinto, Anglo American, BHP Billiton, Fresnillo, Antofagasta, Randgold Resources, and Glencore falling between 1.2% and 2.3%. On the upside, consumer names like Tesco, Dixons Carphone, Merlin Entertainments, and Sainsbury are up between 0.7% and 2.8%.
Germany's DAX is down 0.1%. Bayer trades down 2.8% after reporting weak results while other heavyweights like Volkswagen, Deutsche Bank, BMW, Merck, Siemens, and BASF are down between 0.1% and 0.7%.
France's CAC trades lower by 0.2% amid losses in most components. Solvay, Valeo, Accor, Sanofi, Bouygues, Carrefour, Kering, Danone, and Total show losses between 0.3% and 3.3%.


08:31AM ET
[BRIEFING.COM] S&P futures vs fair value: +5.00. Nasdaq futures vs fair value: +29.00.

The S&P 500 futures are trading five points, or 0.2%, above fair value.

Just in, the second estimate of fourth quarter GDP pointed to an expansion of 2.5% (Briefing.com consensus +2.5%). The first estimate came in at +2.6% last month.

07:54AM ET
[BRIEFING.COM] S&P futures vs fair value: +3.30. Nasdaq futures vs fair value: +18.00.

The stock market followed a big gain on Monday with an equally big loss on Tuesday after new Fed Chairman Jerome Powell gave a semiannual testimony on Capitol Hill. The S&P 500 futures are pointing towards a slightly higher open for the third session of the week, trading three points, or 0.1%, above fair value.

Overseas, Japan's Nikkei, Hong Kong's Hang Seng, and China's Shanghai Composite lost between 1.0% and 1.4% on Wednesday, following Wall Street's lead. The major European bourses are also under pressure this morning, but their losses are relatively modest; the Euro Stoxx 50 is down just 0.2%.

In the bond market, U.S. Treasuries are mixed following yesterday's sell off. The yield on the benchmark 10-yr note is down two basis points at 2.89%, while the yield on the 2-yr note is up one basis point at 2.27%, challenging the nine-year high it touched last week. Yields move inversely to prices.

Meanwhile, West Texas Intermediate crude futures are down 0.2% at $62.86 per barrel after the American Petroleum Institute reported on Tuesday evening that U.S. crude inventories rose 0.9 million barrels last week. The official government figures will be released at 10:30 AM ET.

Investors will receive several economic reports today, including the second estimate of fourth quarter GDP (Briefing.com consensus +2.5%) at 8:30 AM ET, the Chicago PMI for February (Briefing.com consensus 64.5) at 9:45 AM ET, and Pending Home Sales for January (Briefing.com consensus +0.4%) at 10:00 AM ET.

The weekly MBA Mortgage Applications Index was released earlier this morning, showing an increase of 2.7% to follow last week's 6.6% decline.

In U.S. corporate news:

Lowe's (LOW 89.00, -7.64): -7.9% after missing Q4 earnings estimates and issuing below-consensus earnings guidance for FY19.
Celgene (CELG 90.03, -5.75): -6.0% after the FDA issued a Refusal to File letter regarding Celgene's multiple sclerosis drug ozanimod.
Weight Watchers (WTW 76.30, +6.45): +9.2% after beating Q4 earnings and revenue estimates and issuing upbeat guidance for FY18.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a lower note, following Wall Street's lead. Japan's Nikkei -1.4%, Hong Kong's Hang Seng -1.4%, China's Shanghai Composite -1.0%, India's Sensex -0.5%.
In economic data:
China's February Manufacturing PMI 50.3 (expected 51.4; last 51.3) and non-Manufacturing PMI 54.4 (expected 55.0; last 55.3)
Japan's January Housing Starts -13.2% year-over-year (expected -4.5%; last -2.1%). January Construction Orders +0.9% year-over-year (last -8.1%). January Industrial Production -6.6% month-over-month (expected -4.1%; last 2.9%). January Retail Sales +1.6% year-over-year (expected 2.6%; last 3.6%)
India's February Nikkei Markit Manufacturing PMI 52.1 (expected 52.8; last 52.4). January Infrastructure Output +6.7% year-over-year (last 4.0%)
South Korea's March Manufacturing BSI Index 79 (last 80)
Australia's January Private Sector Credit +0.3% month-over-month (expected 0.4%; last 0.3%)
New Zealand's February ANZ Business Confidence -19.0 (last -37.8). January External Migration & Visitors -0.5% (last 3.9%)
Hong Kong's Q4 GDP +3.4% year-over-year (last 3.7%)
In news:
China's Manufacturing and non-Manufacturing PMI readings missed estimates, but they were quickly excused as the result of the timing of the Lunar New Year holiday.
The Bank of Japan reduced its daily purchases of JGBs with tenors of more than 25 years and central bank Governor Haruhiko Kuroda reminded that the easing is meant to reach the elusive 2.0% inflation target.
The Bank of Korea is expected to raise rates in May or July.

Major European indices trade lower across the board. UK's FTSE -0.2%, Germany's DAX -0.4%, France's CAC -0.5%.
In economic data:
Eurozone February CPI +1.2% year-over-year, as expected (last 1.3%). Core CPI +1.0% year-over-year, as expected (last 1.0%)
Germany's February Unemployment Change -22,000 (expected -15,000; last -25,000) and February Unemployment Rate 5.4%, as expected (last 5.4%). March GfK Consumer Climate 10.8 (expected 10.8; last 11.0)
France's February CPI -0.1% month-over-month (expected 0.3%; last -0.1%). January PPI +0.1% month-over-month (last 0.0%). Q4 GDP +0.6% quarter-over-quarter, as expected (last 0.6%) and January Consumer Spending -1.9% month-over-month (expected 0.5%; last -1.2%)
Italy's February CPI +0.1% month-over-month (expected 0.3%; last 0.3%); +0.6% year-over-year (expected 0.7%; last 0.8%)
Spain's December Current Account surplus EUR2.64 billion (last EUR3.04 billion)
Swiss February ZEW Expectations 25.8 (last 34.5). February KOF Leading Indicators 108.0 (expected 106.2; last 107.6)
In news:
Germany's Unemployment rate (5.4%) remained at a post-reunification low while CPI readings from France and Italy were cooler than expected.
Germany's acting Finance Minister Peter Altmaier said that stern fiscal orthodoxy will be maintained even if an SPD member is named the next finance minister.
On the Brexit front, there is renewed uncertainty about the post-Brexit future of the Irish border.


05:51AM ET
[BRIEFING.COM] S&P futures vs fair value: +6.50. Nasdaq futures vs fair value: +17.30.

05:51AM ET
[BRIEFING.COM] Nikkei...22068...-321.60...-1.40%. Hang Seng...30845...-423.90...-1.40%.

05:51AM ET
[BRIEFING.COM] FTSE...7267.08...-15.40...-0.20%. DAX...12465.64...-25.10...-0.20%.

04:25PM ET

[BRIEFING.COM] Equities dropped on Tuesday, giving back all of their Monday gains, as new Fed Chairman Jerome Powell delivered his first semiannual testimony on Capitol Hill. The S&P 500 tumbled 1.3%, while the Nasdaq Composite and the Dow Jones Industrial Average lost 1.2%. The major averages finished at their worst marks of the day following a sharp sell off in the final minutes. Meanwhile, the small-cap Russell 2000 underperformed with a loss of 1.5%, returning to its flat line for the year.

Fed Chairman Powell's prepared remarks, which were released before the opening bell, didn't contain any surprises. Mr. Powell stayed largely in line with his predecessor Janet Yellen, saying that he expects further gradual rate increases based on the economic outlook and that risks to the economy are roughly balanced.

Wall Street opened little changed following the release of Mr. Powell's prepared statement, then started ticking higher as he began fielding questions from the House Financial Services Committee. However, stocks dove into negative territory after Mr. Powell said his economic projections have increased since the December FOMC meeting, prompting investors to adjust their rate-hike expectations.

According to the CME FedWatch Tool, the market is still projecting three rate hikes for 2018, but the probability of a fourth rate hike increased to 33.1% from 24.4% on Monday. Meanwhile, the probability of a rate hike at the March FOMC meeting increased to 87.4% from 78.9% on Monday.

U.S. Treasuries moved lower in tandem with the equity market following Mr. Powell's aforementioned comment, pushing yields back towards the multi-year highs they hit last week. The 2-yr yield ended three basis points higher at 2.26%, one basis point below last Wednesday's nine-year high, while the benchmark 10-yr yield climbed five basis points to 2.91%, which is four basis points below the four-year high it hit last Wednesday.

The rise in yields helped the S&P 500's financial sector keep ahead of the broader market on Tuesday, but the group still finished with a loss of 0.9%. The top-weighted technology sector also outperformed with a loss of 0.9%, but the nine remaining groups finished with losses between 1.0% and 2.2%.

The consumer discretionary sector (-2.1%) was among the weakest groups, with Comcast (CMCSA 36.66, -2.92) dropping 7.4% to a three-month low after upping a bid from 21st Century Fox (FOXA 37.63, -1.18) to $31 billion for a large stake in British pay-television broadcaster Sky. Fox already owns 39% of Sky, but was looking to acquire the remaining stake. The news also weighed on Dow component Walt Disney (DIS 104.87, -4.94), which agreed to buy a big chunk of assets from Fox, including its stake in Sky. Fox and Disney lost 3.0% and 4.5%, respectively, on Tuesday.

Elsewhere within the consumer discretionary space, Macy's (M 28.40, +3.5) rallied 3.5%, hitting a 10-month high, after beating earnings estimates for the fourth quarter and issuing above-consensus guidance for fiscal year 2019. Conversely, AutoZone (AZO 654.47, -81.43) dropped 11.1% after missing quarterly profit estimates.

Overseas, equity indices in the Asia-Pacific region ended Tuesday on a mixed note, with Japan's Nikkei (+1.1%) showing relative strength, while the major European bourses ended a tick lower. The U.S. Dollar Index jumped 0.6% to 90.33, hitting its best level since February 9, with the greenback adding 0.7% against the euro (1.2232) and 0.4% against the Japanese yen (107.37).

Investors received several economic reports on Tuesday, including Durable Orders for January, the Consumer Confidence Index for February, International Trade in Goods for January, the S&P Case-Shiller Home Price Index for December, and the FHFA Housing Price Index for December:

January durable goods orders fell 3.7%, which is more than the 2.0% decrease expected by the Briefing.com consensus. The prior month's reading was revised to +2.6% (from +2.9%). Excluding transportation, durable orders decreased 0.3% (Briefing.com consensus +0.5%) to follow the prior month's revised increase of 0.7% (from +0.6%).
The key takeaway from the report is that there wasn't a lot of carryover order momentum from December, suggesting first quarter activity is proceeding at a slower pace.
The consumer confidence reading for February increased to 130.8 (Briefing.com consensus 126.5) from the prior month's revised reading of 124.3 (from 125.4).
The key takeaway from the report is that consumers are feeling more upbeat about current conditions, led by attitudes pertaining to business and labor market conditions.
The Advance report for International Trade in Goods for January showed a deficit of $74.4 billion (Briefing.com consensus -$72.2 billion), up from a revised deficit of $72.3 billion in December (from -$71.6 billion).
The Case-Shiller 20-city Index increased 6.3% in December (Briefing.com consensus +6.4%), while the November increase was left unrevised at 6.4%.
The FHFA Housing Price Index rose 0.3% in December (Briefing.com consensus +0.4%), while the November increase was revised to 0.5% from 0.4%.

On Wednesday, investors will receive another sizable batch of economic data: the weekly MBA Mortgage Applications Index will be released at 7:00 AM ET, the second estimate of fourth quarter GDP (Briefing.com consensus +2.5%) will be released at 8:30 AM ET, the Chicago PMI for February (Briefing.com consensus 64.5) will be released at 9:45 AM ET, and Pending Home Sales for January (Briefing.com consensus +0.4%) will be released at 10:00 AM ET.

Nasdaq Composite: +6.2% YTD
S&P 500: +2.6% YTD
Dow Jones Industrial Average: +2.8% YTD
Russell 2000: +0.1% YTD

Dow: -299.24… | Nasdaq: -91.11… | S&P: -35.32…
NASDAQ Adv/Dec 622/1347. …NYSE Adv/Dec 680/2286.


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