TheStrategyLab.com Price Action Trading Support Forum

Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
http://twitter.com/wrbtrader (24/7)


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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $1,540.00 dollars or +15.40 points, Emini ES ($ES_F) futures @ $250.00 dollars or +5.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $1,790.00 dollars

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
S&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup

In addition, all of my trades were posted real-time in the timestamp ##TheStrategyLab chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=132&t=1846


Also, posted below are direct links to information about my price action trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis). I'm primarily a day trader because it suits my personal lifestyle but I do occasionally swing trade and position trade. Simply, my trade method is applicable for position trading, swing trading and day trading.

##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) general volatility analysis involving WRB Analysis so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell and I do not have the time/energy/resources to manage a signal calling chat room. Access instructions for chat room @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

Price Action Analysis via WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718

Trade Signal Strategies via Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support (answering your questions) prior to purchasing the Volatility Trading Report (VTR).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=242&t=2402

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Market Context Summaries

The below summaries by Bloomberg, CNNMoney, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/BOE/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action in many trading instruments I monitor during the trading day. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events, intermarket analysis (e.g. Forex EurUsd, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index futures) while using WRB Analysis from one trade to the next trade to give me the market context for price action trading before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trade decisions (day trading, swing trading, position trading)...something I can not get from my broker statements alone. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.

S&P 500 Inches To New High ... But Not 2,000


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

NEW YORK (CNNMoney)
The major gauges barely budged Thursday, but it was a big day for buyout rumors.

The S&P 500 was only up about one point, but that was enough notch another all-time high. The index is slowly closing in on 2,000. The Dow Jones industrial average and the Nasdaq both ended flat as investors focused on the latest batch of earnings and deal news.

SodaStream in play? Shares of SodaStream (SODA) surged on a report that said the maker of at-home soda machines is in talks to be taken private. The stock was halted briefly following a 24% spike. But the rally cooled and it ended the day 9% higher.

There have been rumors that SodaStream could partner with a larger beverage company after Coca-Cola (CCE) took a significant stake in Keurig Green Mountain (GMCR), which is working on its own at-home soda machine.

SodaStream did not immediately respond to a request for comment.

House hunting merger? Zillow (Z) wants to buy rival real estate listing website Trulia (TRLA), according to another Bloomberg report. Sources said a deal could be announced next week. Shares of Zillow soared 15%, while Trulia's stock price surged 32%.

All-time high for Facebook: Facebook (FB, Tech30) shares rose 5% to a record high after posting earnings that blew away expectations.

Qualcomm (QCOM, Tech30)shares plunged due to worries over the company's business in China. Qualcomm is being investigated under China's anti-monopoly law. The tech firm said in its quarterly report that some clients in the country are "not fully complying with their contractual obligations."

AT&T (T, Tech30) slipped after reporting earnings that missed expectations by a penny.

Shares of Amazon (AMZN, Tech30) fell in after hours trading as the online commerce giant's sales outlook underwhelmed the market.

Starbucks (SBUX) reported better-than-expected earnings after the market closed. Visa (V) also topped expectations, but the stock fell in extended trading on its outlook. Pandora (P) shares fell after the online radio company's forecast also disappointed investors.

Other notable movers: Caterpillar (CAT) shares fell after the construction equipment maker lowered the mid-point of its 2014 sales outlook, citing weakness in China. 3M (MMM) shares edged higher after the company reported earnings that met analysts' expectations.

General Motors (GM) expects to pay between $400 million and $600 million to compensation victims of its faulty ignition switches, which have been linked to at least 13 deaths. As a result, GM will take a $1.2 billion pre-tax charge. The report comes one day after GM recalled another 718,000 vehicles.

Rival automaker Ford (F) reported a quarterly pre-tax profit of $2.6 billion, including its first profit in Europe in three years.

Dunkin' Donuts (DNKN) shares fell after the company missed sales forecasts, which it blamed on weakness in the U.S. and faltering Japanese sales of Baskin-Robbins ice cream. Under Armor (UA) shares jumped on better-than-expected results.

United Airlines (UAL) announced a 51% surge in quarterly net income and unveiled a $1 billion share repurchase program. American Airlines (AAL) reported record profits for the second quarter. But shares of both companies ended the day down.

Overall, corporate earnings for the second quarter have been strong. Of the 148 members of the S&P 500 that have reported earnings as of Wednesday, 102 have been better than expected, according to S&P Capital IQ.

Stronger economy: The number of Americans filing first-time claims for unemployment benefits fell to a more than 8-year low, according to the Labor Department's weekly report.

China's factories are motoring again after a dismal start to the year, with a preliminary estimate of manufacturing activity hitting an 18-month high in July.

There was good news from Europe too, with a survey of purchasing managers matching a 3-year high seen in April. European markets were mainly firmer, as were most Asian markets, although Japan's Nikkei slipped.

Political risks lurk: The big risk for Europe's recovery remains an escalation in the dispute with Russia over Ukraine. EU officials are due to present options for much tougher sanctions Thursday, including measures that could restrict Russia's access to European financial markets, as well as arms and energy technology. France's Technip (TKPPY) said sanctions may hurt its profit margins this year.

European markets were higher in afternoon trading. Asian markets ended mixed.





4:10 pm: [BRIEFING.COM] The stock market maintained a narrow trading range on Thursday before ending the session essentially where it began. The S&P 500 added less than a point, while the small-cap Russell 2000 (-0.2%) underperformed.

Equity indices displayed early strength thanks in part to an overnight boost from better than expected economic data in China and Europe. Specifically, China's HSBC Manufacturing PMI surged to an 18-month high (52.0 from 50.7), while Eurozone Manufacturing PMI (51.9; expected 51.7) and Services PMI (54.4; expected 52.7) also surpassed estimates.

In addition to upbeat data from overseas, participants received a batch of better than expected earnings, but the market had a difficult time building on its early gain. The S&P 500 surrendered its opening advance during the initial minutes, but was able to follow that with a rally to a fresh record high (1991.39). The index could not hold that level into the afternoon and slipped back to its flat line by the close.

None of the sectors were able to distinguish themselves with several groups spending time atop the leaderboard. When it was all said and done, consumer staples (+0.4%), utilities (+0.4%) and consumer discretionary (+0.3%) occupied the top three spots.

The staples sector drew strength from beverage stocks with Dr Pepper Snapple (DPS 60.98, +2.54) surging 4.4% in reaction to its bottom-line beat. Peer PepsiCo (PEP 91.91, +1.09) advanced 1.2% after being upgraded to 'Buy' from 'Hold' at Stifel Nicolaus.

For its part, the utilities sector erased its week-to-date loss, but could only narrow its July decline to 3.4%. Despite the recent weakness, the rate-sensitive group holds a year-to-date gain of 12.5% versus a 7.6% increase for the S&P 500.

Elsewhere, the discretionary space was supported by retailers. Under Armour (UA 69.55, +8.92) spiked 14.7% to a new record high after delivering an above-consensus quarterly report, while the SPDR S&P Retail ETF (XRT 85.33, +0.55) rallied 0.7%. The strength among retailers outweighed the broad losses among homebuilders.

The industry group was pressured by a disappointing report from a major builder-DR Horton (DHI 21.94, -2.86)-and the June New Home Sales report, which fell short of expectations (406K; Briefing.com consensus 475K). The iShares Dow Jones US Home Construction ETF (ITB 23.38, -0.83) lost 3.4%.

Other high-beta groups like biotechnology and chipmakers did not fare much better. The iShares Nasdaq Biotechnology ETF (IBB 255.45, -3.89) tumbled 1.5%, while the health care sector (-0.2%) lagged throughout the session.

For its part, the PHLX Semiconductor Index lost 0.8% with Qualcomm (QCOM 76.17, -5.43) registering the largest drop. The stock fell 6.7% after its below-consensus Q4 earnings guidance overshadowed better than expected results.

Meanwhile, another tech stock-Facebook (FB 74.98, +3.69)-soared 5.2% after beating earnings and revenue expectations.

Treasuries retreated, making the bulk of their move ahead of the New York open. The 10-yr note lost 11 ticks, sending its yield higher by four basis points to 2.51%.

Participation was below average with a bit over 615 million shares changing hands at the NYSE.

Economic data was limited to initial claims and the New Home Sales report for June:

The initial claims level fell to 284,000 from an upwardly revised 303,000 (from 302,000), while the Briefing.com consensus expected an increase to 308,000
The drop in claims brought the overall level to its lowest point since February 2006 and pressured the four-week moving average to its lowest level since May 2006
The Department of Labor said there were no special factors associated with the report, but did note that claims tend to be volatile around this time of the year
New home sales fell 8.1% in June to 406,000 from a downwardly revised 442,000 (from 504,000) in May, while the Briefing.com consensus expected a reading of 475,000
Sales were also revised lower for April (408,000 from 425,000) and March (403,000 from 410,000)
Median new home prices increased 5.3% y/y in June to $273,500

Tomorrow, the Durable Orders report (Briefing.com consensus 0.3%) will be released at 8:30 ET. On the earnings front, AbbVie (ABBV 54.08, -0.40), LyondellBasell (LYB 102.42, -0.08), and American Electric Power (AEP 54.01, +0.04) will report their results ahead of the opening bell.

S&P 500 +7.6% YTD
Nasdaq Composite +7.1% YTD
Dow Jones Industrial Average +3.1% YTD
Russell 2000 -0.6% YTD

3:35 pm: [BRIEFING.COM]

Aug gold fell below $1300 per ounce following economic data that showed the initial claims level fell to 284K from an upwardly revised 330K (from 302K), its lowest level since Feb 2006. The Briefing.com consensus called for an increase to 308K.
The yellow metal traded as low as $1287.50 per ounce after pulling back from a session high of $1300.80 per ounce set in morning action and eventually settled with a 1.1% loss at $1290.20 per ounce.
Sep silver trended lower after retreating from a session high of $20.96 per ounce set in morning pit trade. It eventually settled at its session low of $20.41 per ounce, booking a loss of 2.8%.
Sep crude oil pulled back from a session high of $103.17 per barrel set at floor trade open as the dollar index erased overnight losses. The energy component trended lower for the remainder of the session and settled at $102.06 per barrel, or 1.0% lower.
Aug natural gas, on the other hand, traded in positive territory as it gained strength on bullish inventory data. Prices rallied to a session high of $8.89 per MMBtu after the EIA reported that for the week ending July 18, natural gas inventories showed a build of 90 bcf vs expectations for a build of 95-96 bcf.
Natural gas then chopped around near the $3.84 per MMBtu level and settled with a 2.4% gain at $3.87 per MMbtu.

3:00 pm: [BRIEFING.COM] The S&P 500 sits less than a point above its flat line with one hour remaining in the session. With the Q2 earnings season in full swing, today's closing bell will bring another full batch of quarterly reports.

Discretionary and tech stocks will be in focus with Amazon.com (AMZN 360.00, +1.86), Starbucks (SBUX 80.26, +1.12), Ingram Micro (IM 30.19, +0.21), and Visa (V 222.59, +1.39) all set to report their results this evening.

Tomorrow morning, the attention will shift to the likes of AbbVie (ABBV 54.20, -0.27), Aon (AON 90.90, -0.18), and LyondellBasell (LYB 102.49, -0.01).

2:30 pm: [BRIEFING.COM] The stock market has not moved much during the past 30 minutes, but shares of Trulia (TRLA 52.38, +11.80) and Zillow (Z 150.00, +23.53) have soared to new highs.

Specifically, both stocks surged in reaction to reports from Bloomberg indicating Zillow has approached Trulia about a potential acquisition. Trulia is now up nearly 30.0%, while Zillow sports an advance of 18.6%, which is a bit surprising, considering Zillow would be the acquiring company if this deal materializes.

2:00 pm: [BRIEFING.COM] The S&P 500 (+0.1%) remains just above its flat line, while the Russell 2000 (-0.1%) continues trading near its recently-established low.

Cyclical consumer discretionary (+0.3%) and energy (+0.3%) sectors traded ahead of the remaining groups at midday, but both groups have been overtaken by the consumer staples sector (+0.4%). Dr Pepper Snapple (DPS 61.03, +2.59) is a notable outperformer, up 4.4% after beating bottom-line estimates. Elsewhere among beverage stocks, PepsiCo (PEP 92.02, +1.21) is higher by 1.3% after being upgraded to 'Buy' from 'Hold' at Stifel Nicolaus.

1:30 pm: [BRIEFING.COM] The S&P 500 has slipped about two points off its high for the day (a record high we might add) and everyone is stirring to figure out what the heck happened, especially because it dropped a quick two points right after the top of the hour.

There might be a news catalyst out there. Some have speculated that it may be tied to the results of the 10-yr TIPS auction, but since the Treasury market didn't move in response to the auction, that speculation seems a little dubious. There are reports that Portugal's Espirito Santo Financial Group is seeking protection from creditors. That could be it, but the euro barely budged.

One explanation that doesn't seem to get a lot of attention in this headline-centric world is that maybe there was just a bout of profit taking for reasons that might include all or none of the above. To this end, it is worth noting that the two points lost just after the top of the hour have been recouped.

12:55 pm: [BRIEFING.COM] At midday, the major averages hold slim gains with the Russell 2000 in the lead. The small-cap index trades higher by 0.2%, while the S&P 500 sports a modest uptick of 0.1%.

Equity indices climbed at the open, but were quick to return to their flat lines amid some spotty sector leadership. Despite that retreat, the S&P 500 was able to climb to a new session high (1991.42), a level which also represents a new intraday record for the benchmark index.

Seven of ten sectors hold gains with energy (+0.4%), consumer discretionary (+0.4%), and financials (+0.3%) in the lead. Of the three, the discretionary sector has shown strength since the start, while the other two groups joined the advance a bit later.

Retailers have been largely responsible for the strength of the discretionary space. The SPDR S&P Retail ETF (XRT 85.41, +0.63) is higher by 0.7%, while shares of Under Armour (UA 69.89, +9.26) have surged 15.3% in reaction to a better than expected quarterly report.

Unfortunately, homebuilders have not been able to take part in the rally with the industry group suffering on a couple fronts. DR Horton (DHI 22.30, -2.50) holds a loss of 10.1% after missing revenue estimates. Adding insult to injury was a disappointing New Home Sales report for June (406K versus Briefing.com consensus 475K). The iShares Dow Jones US Home Construction ETF (ITB 23.51, -0.70) is lower by 2.9%.

Similar to homebuilders, other high-beta groups like biotechnology and chipmakers have also struggled so far today. The iShares Nasdaq Biotechnology ETF (IBB 256.28, -3.06) is lower by 1.2%, while the PHLX Semiconductor Index is lower by 0.8%. Qualcomm (QCOM 76.44, -5.16) is a notable laggard, down 6.3% after its below-consensus Q4 earnings guidance overshadowed its better than expected results.

On a separate note, Ukraine's Prime Minister Aresniy Yatsenyuk has announced his resignation, citing a collapse of the coalition government. However, the announcement was essentially a non-event for the market.

Treasuries hover near their lows with the 10-yr yield up four basis points at 2.51%.

Economic data was limited to initial claims and the New Home Sales report for June:

The initial claims level fell to 284,000 from an upwardly revised 303,000 (from 302,000), while the Briefing.com consensus expected an increase to 308,000
The drop in claims brought the overall level to its lowest point since February 2006 and pressured the four-week moving average to its lowest level since May 2006
The Department of Labor said there were no special factors associated with the report, but did note that claims tend to be volatile around this time of the year
New home sales fell 8.1% in June to 406,000 from a downwardly revised 442,000 (from 504,000) in May, while the Briefing.com consensus expected a reading of 475,000
Sales were also revised lower for April (408,000 from 425,000) and March (403,000 from 410,000)
Median new home prices increased 5.3% y/y in June to $273,500

12:30 pm: [BRIEFING.COM] Not much change in the major averages with the S&P 500 (+0.1%) remaining near its best level of the day. Despite opening the day with a two-point gain, the benchmark index briefly tested its flat line before rising to a fresh high (1991.42), which also represents a new intraday record level for the index.

Elsewhere, the Dow Jones Industrial Average has been unable to climb above its July 16 settlement at 17138.20, which leaves the price-weighted index flat for the week versus a 0.6% gain for the S&P 500.

Interestingly, today's modest advance has not stopped participants from showing demand for volatility protection as evidenced by a 1.8% gain in the CBOE Volatility Index (VIX 11.73, +0.21).

12:00 pm: [BRIEFING.COM] The S&P 500 (+0.2%) remains just below its best level of the session with seven sectors holding gains.

The utilities space (+0.2%) was an early leader, but the rate-sensitive group has since retreated from the top spot, allowing consumer discretionary (+0.4%) and energy (+0.4%) sectors to assume the lead.

Consumer discretionary shares remain supported by retailers with the SPDR S&P Retail ETF (XRT 85.54, +0.76) trading higher by 0.9%. Shares of Under Armour (UA 69.68, +9.05), meanwhile, have extended their earnings-driven gain to 14.9%.

Also of note, the relative strength of retail stocks has overshadowed the underperformance of homebuilders. DR Horton (DHI 22.47, -2.33) holds a loss of 9.4% after missing revenue estimates, while the iShares Dow Jones US Home Construction ETF (ITB 23.66, -0.55) holds a loss of 2.3%. It is also worth mentioning that today's disappointing New Home Sales report has added to the pressure.

11:25 am: [BRIEFING.COM] Recent action saw the S&P 500 (+0.2%) climb to a new session high. The move also helped the Nasdaq (+0.2%) return into the green, but some portions of the tech-heavy index continue showing relative weakness.

The high-beta biotech group lags with the iShares Nasdaq Biotechnology ETF (IBB 256.65, -2.69) trading lower by 1.0% after spiking 2.2% yesterday. Similarly, chipmakers are also on the defensive with the PHLX Semiconductor Index lower by 0.6%. Qualcomm (QCOM 76.48, -5.12) is the weakest performer, down 6.3% after its below-consensus guidance overshadowed its better than expected earnings and revenue.

11:00 am: [BRIEFING.COM] The major averages have not moved much over the past hour, which leaves in the neighborhood of their flat lines. The Dow and S&P 500 (+0.1%) hover just above their flat lines, while the Nasdaq Composite (-0.1%) sits near its session low.

Although equities displayed early strength, the S&P 500 has encountered some resistance in the 1990 area. The utilities sector (+0.5%) is the top-performing group, while cyclical sectors like energy (+0.3%) and consumer discretionary (+0.3%) also trade ahead of the broader market.

On the flip side, four sectors hover in the red, but their losses have been contained to no more than 0.2%. The industrial sector (-0.2%) lags amid weakness in defense contractors. Shares of Boeing (BA 124.62, -2.09) trade lower by 1.7%, while the PHLX Defense Index holds a loss of 0.2%.

On a separate note, Ukraine's Prime Minister Aresniy Yatsenyuk has announced his resignation.

10:35 am: [BRIEFING.COM]

Gold and silver futures barely inch higher following home sales
In current trade, Gold and silver futures just dropped to new session lows; Aug gold is now -1.1% at $1290.80/oz, Sept silver is -1.9% at $20.59/oz
Natural gas futures, on the other hand, were rallying into the weekly inventory data
Following the data, Aug nat gas spiked to a new HoD and is now +2.4% at $3.85/MMBtu.
Aug crude oil is in the red today, now -0.5% at $102.66/barrel.
Copper futures have been strong today. Sept copper hit a new HoD in recent trade and is now +1.5% at $3.26/lb

10:00 am: [BRIEFING.COM] The S&P 500 has slipped back to its flat line.

New home sales in June hit an annualized rate of 406,000, which down from the revised May rate of 442,000 (from 504,000), and worse than the rate of 475,000 that had been broadly expected by the Briefing.com consensus.

9:40 am: [BRIEFING.COM] Similar to yesterday, the Nasdaq (+0.2%) and S&P 500 (+0.1%) began the trading day in the green, while the Dow Jones Industrial Average started in the red before reclaiming its flat line.

Six of ten sectors display early gains with the discretionary space (+0.4%) in the lead. Under Armour (UA 67.75, +7.15), which trades higher by 11.7%, has boosted the sector with its strong quarterly report. Furthermore, the results have also underpinned retailers as a group. The SPDR S&P Retail ETF (XRT 85.12, +0.34) trades higher by 0.4%.

Elsewhere, the tech sector (+0.1%) sports a modest gain with Facebook (FB 76.32, +5.03) trading higher by 7.0% following its above-consensus results.

On the downside, the telecom services sector (-0.9%) has been pressured by below-consensus earnings and revenue from AT&T (T 35.32, -0.56). The telecom giant trades lower by 1.4%.

Treasuries are on their lows with the 10-yr yield up four basis points at 2.50%.

The New Home Sales report for June (Briefing.com consensus 475K) will be released at 10:00 ET.

9:15 am: [BRIEFING.COM] S&P futures vs fair value: +3.10. Nasdaq futures vs fair value: +6.20. The stock market is on track for an upbeat start to the Thursday session as futures on the S&P 500 trade three points above fair value. Overnight, China's HSBC Manufacturing PMI surged to an 18-month high (52.0 from 50.7), which gave a boost to the overall sentiment.

The positive disposition carried over into the European session with markets there trading higher across the board. Economic data also provided a boost as Eurozone Manufacturing and Services PMI readings beat estimates.

Domestically, economic data was limited to the weekly initial claims report, which revealed a drop to 284,000. The reading lowered the four-week moving average to its lowest level since May 2006. While the Department of Labor said there were no special factors associated with the report, they did note that claims tend to be volatile around this time of the year.

The New Home Sales report for June (Briefing.com consensus 475K) will be released at 10:00 ET.

Outside of economic data, participants have received another heavy dose of earnings that were mostly better than expected. Notably, Facebook (FB 76.25, +4.96) is indicated to open higher by 7.0% after reporting above-consensus results. Elsewhere, Under Armour (UA 65.79, +5.16) sports a pre-market gain of 8.5% in reaction to its strong results and improved guidance.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: +3.40. Nasdaq futures vs fair value: +7.20. The S&P 500 futures trade three points above fair value.

Markets in Asia ended on a mostly higher note. The Reserve Bank of New Zealand hiked its key rate 25 basis points to 3.50%, as expected.

In economic data:
China's HSBC Manufacturing PMI jumped to 52.0 from 50.7 (consensus 51.0)
Japan's trade deficit narrowed to JPY822 billion from JPY909 billion (expected deficit of JPY643 billion) as exports fell 2.0% (expected 1.0%, previous -2.7%) and imports rose 8.4%, as expected. Separately, Manufacturing PMI slipped to 50.8 from 51.5 (expected 51.9)
Hong Kong's trade deficit widened to $43.10 billion from $42.40 billion (expected deficit of $48.50 billion)

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Japan's Nikkei lost 0.3% following today's trade data. Heavyweight Softbank pressured the index, falling 1.8%.
Hong Kong's Hang Seng surged 0.7% to levels last seen in April 2011. Ping An Insurance rallied 3.7% on reports tier 1 investment banks have been gobbling up shares.
China's Shanghai Composite climbed 1.3% to its best level in more than three months as trade reclaimed the 200-day moving average. Brokerage names continued to see strength as CITIC Securities added 2.6% and Haitong Securities gained 2.5%.

Major European indices trade higher across the board after the release of a full slate of economic data:

Eurozone Manufacturing PMI ticked up to 51.9 from 51.8 (expected 51.7), while Services PMI jumped to 54.4 from 52.8 (consensus 52.7)
Germany's Manufacturing PMI rose to 52.9 from 52.0 (expected 52.0), while Services PMI jumped to 56.6 from 54.6 (consensus 54.5)
Great Britain's Retail Sales rose 0.1% month-over-month (expected 0.3%, previous -0.5%), while the year-over-year reading increased 3.6% (consensus 3.9%, prior 3.7%). Core Retail Sales slipped 0.1% month-over-month (expected 0.3%, previous -0.5%), while the year-over-year reading jumped 4.0% (consensus 4.6%, prior 4.5%)
French Manufacturing PMI slipped to 47.6 from 48.2 (expected 48.1), while Services PMI improved to 50.4 from 48.2 (expected 48.4)
Italy's Retail Sales fell 0.7% month-over-month (consensus 0.4%, previous 0.3%), while the year-over-year reading slipped 0.5% (expected 1.0%, prior 2.7%). Separately, Consumer Confidence fell to 104.6 from 105.6 (consensus 105.0)
Spain's Unemployment Rate eased to 24.5% from 25.9% (expected 25.2%)

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Great Britain's FTSE is higher by 0.2%. Media stock Reed Elsevier leads with a gain of 4.3% after reporting better than expected results. Miners Anglo American and Fresnillo underperform with respective losses of 1.2% and 2.1%.
Germany's DAX trades up 0.4% with financials providing support. Commerzbank sports an advance of 3.0% and Deutsche Bank is higher by 1.5%. BASF is the weakest component, down 1.3% after missing earnings estimates.
In France, the CAC trades higher by 0.8%. Banks are also in the lead with BNP Paribas, Credit Agricole, and Societe Generale up between 2.1% and 3.6%. Oil services company Technip holds a loss of 8.6% after cutting its operating margin target.
Spain's IBEX is higher by 1.7% with banks pacing the rally. Banco Popular, Bankia, BBVA, and Caixabank are up between 2.2% and 4.0%.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: +3.20. Nasdaq futures vs fair value: +9.00. The S&P 500 futures trade three points above fair value.

The latest weekly initial jobless claims count totaled 284,000, while the Briefing.com consensus expected a reading of 308,000. Today's tally was below the revised prior week count of 303,000 (from 302,000). As for continuing claims, they fell to 2.500 million from 2.508 million.

7:59 am: [BRIEFING.COM] S&P futures vs fair value: +4.00. Nasdaq futures vs fair value: +10.20. U.S. equity futures hover near their pre-market highs amid upbeat action overseas. The S&P 500 futures trade four points above fair value.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei -0.3%, Hong Kong's Hang Seng +0.7%, and China's Shanghai Composite +1.3%
In economic data:
China's HSBC Manufacturing PMI jumped to 52.0 from 50.7 (consensus 51.0)
Japan's trade deficit narrowed to JPY822 billion from JPY909 billion (expected deficit of JPY643 billion) as exports fell 2.0% (expected 1.0%, previous -2.7%) and imports rose 8.4%, as expected. Separately, Manufacturing PMI slipped to 50.8 from 51.5 (expected 51.9)
Hong Kong's trade deficit widened to $43.10 billion from $42.40 billion (expected deficit of $48.50 billion)
The Reserve Bank of New Zealand hiked its key interest rate 25 basis points to 3.5%, as expected
In news:
China's Shanghai Composite outperformed the region after the HSBC Manufacturing PMI surged to an 18-month high. According to an HSBC economist, the improvement was supported by the cumulative impact of the mini-stimulus measures being deployed by Beijing.

Major European indices trade higher across the board. Great Britain's FTSE +0.1%, Germany's DAX +0.4%, and France's CAC +0.8%. Elsewhere, Italy's MIB +1.7% and Spain's IBEX +1.8%
Participants received several data points:
Eurozone Manufacturing PMI ticked up to 51.9 from 51.8 (expected 51.7), while Services PMI jumped to 54.4 from 52.8 (consensus 52.7)
Germany's Manufacturing PMI rose to 52.9 from 52.0 (expected 52.0), while Services PMI jumped to 56.6 from 54.6 (consensus 54.5)
Great Britain's Retail Sales rose 0.1% month-over-month (expected 0.3%, previous -0.5%), while the year-over-year reading increased 3.6% (consensus 3.9%, prior 3.7%). Core Retail Sales slipped 0.1% month-over-month (expected 0.3%, previous -0.5%), while the year-over-year reading jumped 4.0% (consensus 4.6%, prior 4.5%)
French Manufacturing PMI slipped to 47.6 from 48.2 (expected 48.1), while Services PMI improved to 50.4 from 48.2 (expected 48.4)
Italy's Retail Sales fell 0.7% month-over-month (consensus 0.4%, previous 0.3%), while the year-over-year reading slipped 0.5% (expected 1.0%, prior 2.7%). Separately, Consumer Confidence fell to 104.6 from 105.6 (consensus 105.0)
Spain's Unemployment Rate eased to 24.5% from 25.9% (expected 25.2%)
Among news of note:
French Prime Minister Manuel Valls discussed the regional economy once again, saying eurozone growth remained too weak, while the euro was still too strong.

In U.S. corporate news:

American Airlines (AAL 43.20, -0.13): -0.3% despite beating bottom-line estimates
AT&T (T 35.30, -0.58): -1.6% after missing earnings and revenue estimates
Caterpillar (CAT 106.40, -1.98): -1.8% beat on earnings, but missed revenue estimates and issued cautious guidance
Facebook (FB 77.51, +6.34): +8.9% after beating expectations
General Motors (GM 36.42, -0.99): -2.7% after reporting in-line results
Gilead Sciences (GILD 91.00, +0.66): +0.7% following its better than expected results
Qualcomm (QCOM 77.91, -3.69): -4.5% after its below-consensus Q4 earnings guidance overshadowed its better than expected results
United Continental (UAL 47.60, +1.60): +3.5% after beating earnings estimates and authorizing a $1 billion repurchase program

Weekly initial claims (Briefing.com consensus 308K) will be reported at 8:30 ET, while the New Home Sales report for June (consensus 475K) will cross the wires at 10:00 ET.

6:43 am: [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +7.00.

6:42 am: [BRIEFING.COM] Nikkei...15284.42...-44.10...-0.30%. Hang Seng...24141.50...+169.90...+0.70%.

6:42 am: [BRIEFING.COM] FTSE...6807.90...+9.90...+0.10%. DAX...9799.93...+46.70...+0.50%.

Special thanks to Bloomberg, CNNMoney, Reuters 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 @ http://stocktwits.com/wrbtrader

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