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)


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

Price Action Trade Performance for Today: +20.40 points or $2040 dollars in the Russell 2000 Emini TF ($TF_F) Futures.
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.

In addition, all trades were posted real-time in the free #TheStrategyLab chat room. You can read today's #TheStrategyLab trading chat room logs for details (e.g. time, price, contract size) about each one of my trades from entry to exit along with price action commentary as the trade traversed in comparison to what's shown in the above image...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=107&t=1289.

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).

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.

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 prior to purchasing the Volatility Trading Report (VTR).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=167&t=1561

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Market Summaries

The below summaries by Bloomberg, CNNMoney and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action. 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 from one trade to the next trade to give me the market context for my technical analysis. 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 trading and reactions to the markets...something I can not get from my broker statements alone.

U.S. Stock Market Wrap

Aug. 3 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks rallied, sending the Standard & Poor’s 500 Index to the highest level since May, after a report showed payrolls climbed more than forecast even as the jobless rate unexpectedly rose to a five-month high. (Source: Bloomberg)

Stocks Soar On Jobs Report


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

NEW YORK (CNNMoney) -- Stocks rallied Friday as a stronger-than-expected July jobs report helped lift markets for the week.

The Dow Jones industrial average surged 217 points, or 1.7%. The S&P 500 and the Nasdaq both rose about 2%.

All three indexes had been headed for a losing week before Friday's jobs report.

The U.S. economy added 163,000 jobs in July, an improvement from an increase of just 64,000 in June, according to a government report. Economists surveyed by CNNMoney were predicting 95,000 jobs were added last month.

"It was the perfect number for the market," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.

The improvement in hiring was enough to "demonstrate the positive, albeit lackluster, underpinnings of the economy," said Luschini. At the same time, he added, it was not strong enough "for the Fed to put its gun back in its holster."
Related: Obama and jobs - a timeline

The Federal Reserve disappointed some investors Wednesday, when it left its economic policies unchanged. However, the Fed indicated the U.S. economy is slowing and that more action could be in the cards soon.

Many investors expect Fed chairman Ben Bernanke to hint at the possibility of more stimulus at the central bank's annual symposium later this month in Jackson Hole, Wyo. The Fed could then follow up by announcing a third round of asset purchases in September.

The European Central Bank also failed to take any simulative action, further adding to worries about the global economy.

"This is clearly a short-term ricochet based on the jobs news," said Frank Davis, director of deals and trading at LEK Securities. "The concern is what happens in Europe over the weekend."
Related: Why Knight lost $440 million in 45 minutes

In the corporate world, shares of Knight Capital Group (KCG) rebounded 57%, after plummeting to near $2 a day earlier.

After a costly high-frequency trading mishap Wednesday, Knight is now the subject of takeover talks. The Wall Street Journal reported that Knight told its clients it had secured a line of credit to keep operating through Friday.
Fear & Greed Index

U.S. stocks ended in the red Thursday, after European Central Bank president Mario Draghi stopped short of announcing immediate action to contain Europe's debt crisis at the conclusion of an ECB meeting.

World markets: European stocks closed higher. Britain's FTSE 100 added 2.2%, the DAX in Germany gained 3.9% and France's CAC 40 gained 4.4%.

Asian markets ended mixed. The Shanghai Composite rose 1.0%, while the Hang Seng in Hong Kong slipped 0.1% and Japan's Nikkei lost 1.1%.

Economy: The Institute for Supply Management said its index of activity in the services sector increased to 52.6 in July from 52.1 in June.

The index was expected to come in at 52.3, according to a survey of analysts by Briefing.com.

Companies: Shares of AIG were halted in midday trading before the insurance company announced that it would buy $3 billion worth of its own stock from the U.S. Treasury Department. The Treasury said it will offer a total of $4.5 billion worth of AIG common stock.

AIG (AIG, Fortune 500), once the world's largest insurance company, was bailed out by the government during the 2008-2009 credit crisis. Shares closed 1.6% higher on Friday.

LinkedIn (LNKD) shares jumped after the business networking site reported sales that nearly doubled from a year ago, led by a huge increase in revenue for its job posting services.

Facebook (FB) jumped on the tech bandwagon, ending 5% higher after six straight days of losses.
Related: Facebook has no friends

Shares of Procter & Gamble (PG, Fortune 500) finished 3% higher after the consumer products company topped earnings expectations. Revenues were in line with expectations.

Kraft (KFT, Fortune 500) said late Thursday that profits rose in the second quarter, adding that it expects continued growth in the remainder of the year.

NYSE Euronext (NYX)'s quarterly results beat Wall Street's earnings and revenue forecasts.

Currencies and commodities: The dollar fell against the euro and British pound, but rose slightly versus the Japanese yen.

Oil for September delivery rose $4.12 to $91.25 a barrel.

Gold futures for August delivery rose $15.10 to $1,605.80 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.57% from 1.48% late Thursday.



Market Update

4:25 pm : Friday's action saw a broad market rally which started with optimism across European markets. A strong nonfarm payroll report combined with a positive ISM Services print supported the day's gains. After advancing 1% at open, equities added to their strength. As a result, the Nasdaq gained 2% and the S&P 500 rose by 1.9%.

Nonfarm payrolls came in at 163K versus the expected 100K Briefing.com consensus while nonfarm private payrolls added 172K against expectations of a 105K increase. The unemployment rate of 8.3% ticked up from its previous reading of 8.2%.

The July ISM Services index was reported at 52.6, slightly above the 52.3 Briefing.com consensus, and up from June's 52.1 reading.

European indices closed firmly higher after yesterday's volatile session. Italy's MIB and Spain's IBEX soared by 6.3% and 6.0% respectively. France's CAC jumped 4.4% and Germany's DAX gained 3.9%.

U.S. listings of European financials rose sharply with Deutsche Bank (DB 31.21, +2.86) and Barclays (BCS 10.66, +0.61) gaining 10.0% and 6.1% respectively.

The strength in European banks followed a significant drop in Italian and Spanish yields. Italy's 2-yr yield declined 54 basis points to 3.11% while Spain's 2-yr yield eased 88 basis points at 3.91%.

The financial sector was the best performer today. With considerable gains throughout, Morgan Stanley (MS 13.78, +0.75) gained 5.8% while Citigroup (C 27.41, +1.23) advanced 4.7%.

Knight Capital Group (KCG 4.05, +1.47) has rebounded off all-time lows after securing a line of credit which has allowed the firm to continue operating for the day. Despite today's rally, shares of Knight remain down 60.9% on the week. It is expected that some sort of longer-term resolution for KCG will come next week, with reports today suggesting several potential bidders/investors are reviewing the company.

LinkedIn (LNKD 108.51, +15.00) gained 16% after reporting in-line EPS and better than expected revenues and full-year guidance. Today's considerable bid has taken the shares above the 20- and 50-day moving averages.

Procter & Gamble (PG 65.50, +1.99) gained 3.1% after beating earnings estimates but coming up short on revenues.

The dollar index was considerably lower amid today's risk rally. At 82.45, the index ended down 1.1%. The euro was the top performer among the major currencies against the dollar with today's 200 pip advance running it up to 1.2375. Other currencies which saw strong gains include the Australian dollar (up 0.9% at 1.0555) while the British pound has added 0.8% to 1.5640.

Crude oil got a major boost today, gaining nearly 5% after the better than expected employment data, positive performance in Europe while also benefitting from the dollar's decline. The energy component lifted from its session low of $88.31 per barrel and steadily climbed higher, settling just below its session high of $91.79. Despite selling pressure seen in previous sessions following little-changed FOMC and ECB statements, crude finished the week with a 1.4% gain at $91.40.

Corporate earnings and central bank comments headline the week.

Looking back on the week, Monday's equity markets were quiet for the duration of the session with the S&P 500 finishing nearly flat on the day. One notable deal was announced before the open. Shaw Group (SHAW 39.47, +0.43) gained 55% after the firm was acquired by Chicago Bridge & Iron (CBI 36.44, +1.00) CB&I will pay a total of $3 billion or $46 per share of Shaw.

Tuesday's action was similar to that observed on the day before as the major indices hovered around their respective unchanged levels for most of the session. Low volume and in-line economic data contributed to an uneventful session as investors awaited comments from the Federal Reserve and the European Central Bank later in the week. As far as earnings, US Steel (X 21.72, +0.66) was one of the day's best performers, finishing up 9% after it beat earnings expectations. The S&P 500 edged lower by 0.4%.

On Wednesday before the open, The ADP National Employment Report indicated employment in the nonfarm private business sector rose 163K in July. This was above the 125K expected by the consensus. About 15 minutes following the opening bell, approximately 150 stocks began to behave erratically. It was later determined that a technology issue at Knight Capital Group (KCG 4.05, +1.47) was behind the abnormal activity. Later in the day, the Federal Open Market Committee repeated that it would ‘monitor incoming information on economic and financial developments and will provide additional accommodation as needed.' The FOMC kept its pledge to keep rates low to at least late 2014. The S&P 500 fell 0.3 that day.

Thursday's trade was focused on the comments from European Central Bank President Mario Draghi. During his press conference, Mr. Draghi failed to announce new measures to help stem the European debt crisis. Knight Capital Group (KCG 4.05, +1.47) finished near session lows as Wednesday's execution glitch is said to have cost the firm $440 million in direct losses. Several firms have indicated that they have used other systems to route their orders. The S&P 500 finished down 0.7%. In Corporate news, Abercrombie & Fitch (ANF 29.37, +0.31) dropped 14.6% after issuing disappointing guidance. Finally, retailers reported July same store sales, which overall came in above expectations with sixteen retailers beating estimates—the most since April of last year (three companies missed).

Earnings Season enters home stretch.

Just over 80% of the S&P 500 has reported quarterly results so far during this earnings season. Roughly two thirds of them have beat earnings estimates. On the other hand, roughly 56% of companies have missed sales expectations. Guidance has been decidedly cautious.

Next week is the final very heavy week of earnings season. Over 500 companies are expected to report, including more than 40 companies in the S&P 500. Cognizant (CTSH 57.86, +1.58) and Tyson Foods (TSN 15.40, +0.25) will report on Monday morning.DJ30 +217.29 NASDAQ +58.13 SP500 +25.99 NASDAQ Adv/Vol/Dec 1929/1.68 bln/570 NYSE Adv/Vol/Dec 2537/753.6 mln/516

3:30 pm : Crude oil got a boost from a decline in the dollar during today's pit trade. The energy component lifted from its session low of $88.31 per barrel and steadily climbed higher, settling just below its session high of $91.79 per barrel. Despite selling pressure seen in previous sessions following little-changed FOMC and ECB statements, crude finished the week with a 1.4% gain at $91.40 per barrel.

Natural gas extended yesterday's losses as it stayed below the $3.00 per MMBtu level. It managed to trade up to a session high of $2.95 per MMBtu but was unable to keep the momentum and fell back into negative territory. Natural gas closed the week 5.0% lower at $2.88 per MMBtu as yesterday's weak inventory data contributed to the losses.

Gold fell to its pit session low of $1588.50 per ounce on stronger-than-anticipated employment data. However, the yellow metal quickly reversed the loss as the dollar weakened. It traded in an uptrend for the remainder of floor trade and settled just below its session high of $1609.90 per ounce. Despite today's advance, gold settled the week 1.0% lower at $1608.80 per ounce after suffering losses in previous sessions as investors hoping for action from the ECB to boost Europe's ailing economy were disappointed by President Draghi's comments. Silver followed in gold's footsteps as it came off its pit session low of $ 26.99 per ounce and climbed as high as $27.90 per ounce. It closed the week 1.0% higher at $27.78 per ounce.DJ30 +212.14 NASDAQ +60.88 SP500 +26.11 NASDAQ Adv/Vol/Dec 1982/1391.92 mln/531 NYSE Adv/Vol/Dec 2528/507 mln/520

3:00 pm : As stocks enter the final hour of the session, the S&P 500 hovers just below the day's high.

Activision Blizzard (ATVI 11.18, -0.59) is trading down 5% and is one of the few decliners on the day. The company exceeded earnings and revenue estimates but issued cautious guidance. Today's selling dropped the stock down to the $11.00 area, last seen in August of last year.DJ30 +225.65 NASDAQ +62.77 SP500 +27.03 NASDAQ Adv/Vol/Dec 1990/1.25 bln/513 NYSE Adv/Vol/Dec 2541/455.5 mln/489

2:30 pm : Afternoon action remains flat as equities maintained their highs. The S&P 500 is up 2.1%.

American International Group (AIG 31.16, +0.32) was halted from trading after the Treasury announced a public offering of AIG common stock. The shares of the insurer have been held by the Treasury since October 2008 as part of the Troubled Asset Relief Program.DJ30 +232.80 NASDAQ +66.39 SP500 +27.84 NASDAQ Adv/Vol/Dec 1993/1.17 bln/498 NYSE Adv/Vol/Dec 2537/420.1 mln/486

2:00 pm : Low volume persists as the S&P 500 holds its 2% advance.

Despite an earnings disappointment, Viacom (VIAB 46.69, +0.86) is benefiting from today’s broad rally. The media company missed their earnings expectations by $0.04 and came up $254 million short of the revenue expectations. Shares saw significant volatility at open spiking to $47.50 followed by a drop to $44.85. The stock was then able to right its ship and is now up 1.9%.DJ30 +231.06 NASDAQ +63.80 SP500 +27.53 NASDAQ Adv/Vol/Dec 1978/1.09 bln/493 NYSE Adv/Vol/Dec 2543/390.3 mln/483

1:30 pm : Equities are holding onto gains built up during the first hour of trade. The S&P 500 remains up 2%.

Knight Capital Group (KCG 3.33, +0.75) has rebounded off all-time lows after securing a line of credit which has allowed the firm to continue operating for the day. Despite today's rally, shares of Knight remain down 68.5% on the week.DJ30 +232.61 NASDAQ +63.53 SP500 +27.42 NASDAQ Adv/Vol/Dec 1976/1.01 bln/480 NYSE Adv/Vol/Dec 2545/360.1 mln/462

1:00 pm : Equities have followed the risk-on sentiment started overnight in Europe. After a 1% gap-up open, stocks have added to their gains throughout the day. Low volume persists into the afternoon, but it has not stopped the S&P 500 from pushing to new highs. The index is now up 2%.

Nonfarm payrolls came in at 163K versus the 100K Briefing.com consensus while nonfarm private payrolls added 172K against the 105K consensus. The unemployment rate was reported at 8.3% which ticked up from its previous reading of 8.2%.

The July ISM Services index was reported at 52.6, slightly above the 52.3 Briefing.com consensus, and up from June's 52.1 reading.

European indices closed firmly higher after yesterday's volatile session. Italy's MIB and Spain's IBEX gained 6.3% and 6% respectively. U.S. listings of European financials are rising sharply. Deutsche Bank (DB 31.22, +2.87) and Barclays (BCS 10.71, +0.66) are up 10.1% and 6.6% respectively.

The strength in European banks comes on the heels of a significant drop in Italian and Spanish yields. Italy's 2-yr yield declined 54 basis points to 3.11% while Spain's 2-yr yield is off 88 basis points at 3.91%.

The U.S. financial sector is the best performer today. Morgan Stanley (MS 13.77, +0.74) is up nearly 6% while Citigroup (C 27.45, +1.27) trades up 4.8%.

LinkedIn (LNKD 106.71, +13.26) is higher by 14% after reporting revenues above expectations. Today's considerable bid has taken the shares above the 20- and 50-day moving averages.

Procter & Gamble (PG 65.74, +2.23) is trading up 3.5% after beating earnings estimates but coming up short on revenues. Today's buying has taken the stock past short-term resistance in the $65.25 area with the next target around $67.00.

After being the worst performing sector yesterday, energy is one of today's top performers. EOG Resources (EOG 106.41, +10.29) is up 10.7% after beating earnings estimates by $0.18. The company also exceeded revenue forecasts by nearly $500 million. Early buying has run the stock up to almost $109.00, a level last seen in early May.DJ30 +236.81 NASDAQ +62.41 SP500 +27.30 NASDAQ Adv/Vol/Dec 1976/938.5 mln/475 NYSE Adv/Vol/Dec 2545/337.1 mln/444

12:30 pm : Equities are hovering around session highs as the low volume advance persists.

The dollar index is considerably lower amid today's risk rally. At 82.40, the index is down 1.2%. The euro is the top performer among the major currencies against the dollar with today's 200 pip advance running it up to 1.2380. Other currencies seeing strong gains include the Australian dollar which is up 1% at 1.0565 while the British pound has added 0.8% to 1.5638.DJ30 +253.77 NASDAQ +64.68 SP500 +28.96 NASDAQ Adv/Vol/Dec 1971/844.2 mln/465 NYSE Adv/Vol/Dec 2551/308.4 mln/415

12:00 pm : The S&P 500 continues to hold near session highs with a 2.1% gain.

Procter & Gamble (PG 65.61, +2.10) is trading up 3.3% after beating earnings estimates but coming up short on revenues. Today's buying has taken the stock past short-term resistance in the $65.25 area with the next target around $67.00.DJ30 +244.31 NASDAQ +63.94 SP500 +28.27 NASDAQ Adv/Vol/Dec 1974/737.2 mln/426 NYSE Adv/Vol/Dec 2554/275.1 mln/401

11:35 am : As Europe closes near session highs, U.S. stocks are extending their gains. The S&P 500 is up 2% while the Nasdaq outperforms slightly and is higher by 2.1%.

The financial sector is the best performer today. Morgan Stanley (MS 13.83, +0.80) is up 6% while Citigroup (C 27.44, +1.26) trades up 5%.

European financials are seeing even more relief following yesterday's losses. Deutsche Bank (DB 31.23, +2.88) and Barclays (BCS 10.74, +0.69) are up 10.2% and 7% respectively. The strength in European financials comes on the heels of a significant drop in Italian and Spanish yields. Italy's 2-yr yield declined 54 basis points to 3.11% while Spain's 2-yr yield is off 88 basis points at 3.91%.DJ30 +231.78 NASDAQ +62.78 SP500 +27.03 NASDAQ Adv/Vol/Dec 1942/643.1 mln/448 NYSE Adv/Vol/Dec 2546/242.5 mln/378

11:00 am : Markets hold at their best levels of the session. The S&P 500 is higher by 1.9%.

After being the worst performing sector yesterday, energy is one of today's top performers. EOG Resources (EOG 105.76, +9.64) is up 10% after beating earnings estimates by $0.18. With revenue of $2.91 billion, the company exceeded forecasts by nearly $500 million. Early buying has run the stock up to almost $109.00, a level last seen in early May.DJ30 +219.10 NASDAQ +57.80 SP500 +25.62 NASDAQ Adv/Vol/Dec 1923/516.3 mln/429 NYSE Adv/Vol/Dec 2520/201.1 mln/368

10:35 am : Following the jobs numbers (July Nonfarm Payrolls 163K vs 100K Briefing.com consensus; Prior revised to 64K from 80K), precious metals dropped hard and crude oil spiked.

In energy this morning, Sept crude oil has been in positive territory all session. Ahead of the jobs data, oil was inching lower from its session high of $88.32, falling out $0.65 barrel to about $87.67 before spiking following the jobs data. In more recent activity, crude has been pushing higher and just hit a new HoD of $90.91/barrel and is now +4.0% at $90.65/barrel.

Sept natural gas is trading lower this morning after posting the largest one-day drop yesterday since Sept 2009. Early this morning, nat gas fell as low as $2.84/MMBtu, but is now 0.7% lower at $2.90.

In the metals space, August gold and Sept silver initially tanked following the jobs data with gold dropping just over $10/oz, falling into negative territory and silver dropping about $0.15-0.20. Since then, both precious metals have rallied sharply to new session highs (Gold $1606, Silver $27.68). Gold is now +0.7% at $1601.60/oz and silver is +2.1% at $27.57/oz. July copper is trading higher this morning, now up 1.7% at $3.35/lb.DJ30 +229.13 NASDAQ +60.32 SP500 +26.47 NASDAQ Adv/Vol/Dec 1902/417.2 mln/386 NYSE Adv/Vol/Dec 2542/166 mln/301

10:00 am : The July ISM Services index was reported at 52.6, which is slightly above the 52.3 Briefing.com consensus, and up from June's 52.1 reading. The S&P 500 is maintaining it's 1.8% gain following the report.DJ30 +206.69 NASDAQ +54.70 SP500 +24.27 NASDAQ Adv/Vol/Dec 1892/255.3 mln/354 NYSE Adv/Vol/Dec 2513/116.4 mln/275

09:45 am : The first 15 minutes of the session saw an extension of the pre-market sentiment. The S&P 500 is up 1.5%.

The energy sector is a top performer after crude oil spiked nearly $2 per barrel to a session high near $90.00. The advance followed the better-than-expected nonfarm payroll report.

ISM Services will be reported at 10 AM ET.DJ30 +177.71 NASDAQ +47.42 SP500 +20.79 NASDAQ Adv/Vol/Dec 1840/154.3 mln/367 NYSE Adv/Vol/Dec 2465/83.1 mln/259

09:16 am : [BRIEFING.COM] S&P futures vs fair value: +19.20. Nasdaq futures vs fair value: +39.00.

Heading into the open, futures remain elevated. The S&P 500 futures are now indicating a 1.4% advance at open.

After releasing their earnings LinkedIn (LNKD 103.59, +10.09), Sunoco (SUN 48.60, +1.23), and Procter & Gamble (PG 64.67, +1.16) are some of the names which bear watching today.

ISM services will be reported at 10 AM ET.

09:02 am : [BRIEFING.COM] S&P futures vs fair value: +17.70. Nasdaq futures vs fair value: +35.00. As mentioned at 8:30, July nonfarm payrolls came in at 163K versus the 100K Briefing.com consensus. The better than expected data is resulting in strength in the dollar and weakness in metals (gold dropped 10 pts and is now flat). Equities spiked on the data, but have pulled back from their initial highs. The S&P 500 futures remain higher by 1.1%.

Global markets have been mixed following yesterday's disappointment stemming from the Mario Draghi press conference. European indices remain higher heading into final hours of the session while their Asian counterparts maintained a negative tone into the weekend.

European indices are seeing advances across the continent. Italy's MIB and Spain's IBEX are the most exuberant, up 4% and 3% respectively. Financials are benefiting most from today's rally. Spain's CaixaBank and Bankia are seeing respective gains of 6.5% and 4.3%.

Elsewhere, France's CAC is higher by 2.9% while Germany's DAX has an advance of 2.5%. Similar to Spain and Italy, French and German financials are posting the biggest gains on the day.

French financials Societe Generale and Credit Agricole are both up near 5%.

German banks Deutsche Bank and Commerzbank are higher by 5.1% and 4.4% respectively. With most DAX components advancing, Lufthansa lags behind, down 0.6%.

In Japan, the Nikkei closed down 1.1% as a plethora of earnings reports missed expectations. Shares of Sharp plunged 28.1% after the company lowered its full-year outlook to a JPY100 billion loss (JPY20 billion gain previous) while Sony sank 6.7% after missing estimates and cutting its forecast.

In Hong Kong, the Hang Seng shed 0.1% as companies with exposure to Europe underperformed. Conglomerate Hutchinson Whampoa fell 1.5% and port operator Cosco Pacific slid 3.1% as the inaction from the ECB weighed on those names with heavy exposure to Europe.

In China, the Shanghai Composite rose 1.0% as shares outperformed on the hopes Beijing will announce more support for financial markets. Brokerage firms outperformed even as Beijing announced it was cutting brokerage fees. Western Securities climbed 5.5% and GF Securities gained 2.3%.

08:32 am : [BRIEFING.COM] S&P futures vs fair value: +16.60. Nasdaq futures vs fair value: +30.80. Futures have seen a positive initial response to the July employment data, which was better than expected.

Nonfarm payrolls came in at 163K versus the 100K Briefing.com consensus. Nonfarm private payrolls added 172K against the 105K consensus. The unemployment rate was reported at 8.3% versus the 8.2% consensus.

Average workweek stayed unchanged at 34.5, as expected.

08:03 am : [BRIEFING.COM] S&P futures vs fair value: +12.20. Nasdaq futures vs fair value: +22.00. After showing weakness yesterday, U.S. equity futures are rebounding by 1% this morning. However, the July employment report has the potential to add significant volatility in either direction when the data is released at 8:30 ET. European indices are showing larger gains of more than 2%, rebounding from yesterday's weakness ahead of this morning's U.S. employment data as well.

European indices are advancing across the board following yesterday's volatile trading. Italy's MIB and Spain's IBEX are the biggest beneficiaries of this morning's advances. The two indices are up 4.2% and 3.2% respectively. Other European indices are also showing sizable gains. France's CAC is up 2.3% while Germany's DAX and UK's FTSE are higher by 2.1% and 1.4% respectively.

Asian equities were more mixed. The advances were seen in China where the Shanghai composite index rose by 1%. Investors in Japan and Hong Kong were less optimistic. Japan's Nikkei ended 1% lower after a flat session and Hong Kong's Hang Seng was down for most of the day before rallying at the end to pare most losses. The index finished off by 0.1%.

In U.S. corporate news, Knight Capital Group (KCG 2.40, -0.18) has recovered by 28% from its after-hours lows and is currently down around 7% in pre-market. The stock traded lower in after-hours on various reports regarding the company's future. This morning, reports have indicated that the company has opened its books to potential investors/suitors.

Earnings season continues as nearly 160 companies reported their results between the end of yesterday's session and today's opening bell.

MercadoLibre (MELI 74.79, +8.27) is up over 12% in pre-market trading after exceeding earnings expectations by $0.08.

LinkedIn (LNKD 101.98, +8.47) posted in-line earnings of $0.16 on better-than-expected revenues of $228 million. The stock is advancing 9% in pre-market action.

Sunoco (SUN 47.37, 0.00) reported earnings of $1.22 per share on revenue of $12.23 billion. The company easily beat estimates which called for $0.46 in earnings on $6.97 billion revenue.

Kraft Foods (KFT 38.94, 0.00) posted mixed results. The food manufacturer earned $0.68 on $13.29 billion in revenues. Earnings per share were a $0.02 surprise to the upside while the revenue missed estimates by more than $800 million.

Procter & Gamble (PG 64.10, +0.59) beat on earnings of $0.82, but missed revenue estimates by about $50 million.

Viacom (VIAB 41.83, -4.00) missed earnings expectations by $0.04 and missed revenue estimates by $250 million. The stock is down 8.7% ahead of open.

Today's economic data includes nonfarm payrolls, nonfarm private payrolls, unemployment rate, hourly earnings, and average workweek. All data points will be reported at 8:30 AM ET.

06:48 am : [BRIEFING.COM] S&P futures vs fair value: +10.50. Nasdaq futures vs fair value: +20.00.

06:48 am : Nikkei...8555.11...-98.10...-1.10%. Hang Seng...19666.16...-24.00...-0.10%.

06:48 am : FTSE...5735.14...+72.80...+1.30%. DAX...6735.59...+129.50...+2.00%.

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

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

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