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)
wrbanalysis@gmail.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 @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $6375.00 dollars or +127.50 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $6375.00 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

Trade Log: All of my trades were posted real-time in the timestamp ##TheStrategyLab free chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips in ##TheStrategyLab chat room involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=153&t=2284


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

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

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

Analysis -----> Trade Signals

Trade Signal Strategies via Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support (answering your questions) prior to purchasing the Volatility Trading Report (VTR). All WRB Analysis Tutorial Chapters 1 - 12 are included in the purchase of the Volatility Trading Report (VTR).

Daily Trading Plan Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=285&t=3049 contains brief information about trading plan, market context, brokers, trading time frames, position size management and other discussions.

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Market Context Summaries

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


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


4:20 pm: [BRIEFING.COM] The major averages ended the final session of the week under heavy selling pressure as the health of the U.S. economy and its ability to sustain further fed funds rate hikes remained in focus following the release of the January Employment Situation Report. The report contained diverging metrics that showed weaker than expected job growth but stronger than expected wage growth. Additionally, the data showed that the unemployment rate fell to an eight-year low of 4.9%. The Nasdaq Composite (-3.3%) finished behind both the S&P 500 (-1.9%) and the Dow Jones Industrial Average (-1.3%).

Other contributing headwinds to today's session included:

A reversal in the dollar that weighed on oil
A lack of leadership from market cornerstones; and
Weaker than expected earnings results

Overnight sessions and futures were fairly restrained as global markets awaited the U.S. Nonfarm Payrolls report. Participants found the report disjointed with misses on headline metrics but positive growth from other benchmarks. For instance, both nonfarm payroll and private sector payroll numbers grew less than expected, but the unemployment rate dropped to 4.9%. Furthermore, hourly earnings rose 0.5% showing potential for an uptick in inflation. This disconnect between data points fueled anxiety over the health of the economy and increased speculation regarding future rate increases.

Countercyclical telecom services (+0.8%) and utilities (+0.3%) were able to end the day in positive territory while heavyweight sectors like technology (-3.4%) consumer discretionary (-3.2%) and health care (-2.0%) finished on the bottom of the leaderboard.

In the top-weighted technology space, large-cap constituents showed relative weakness with Facebook (FB 104.06, -6.42), Alphabet (GOOGL 703.76, -26.27), and Microsoft (MSFT 50.16, -1.84) declining between 3.5% and 5.8%. Elsewhere, LinkedIn (LNKD 108.38, -83.90) plunged 46.6% after below consensus guidance overshadowed a bottom line beat. The high-beta chipmakers showed relative weakness, evidenced by the 3.5% decline in the PHLX Semiconductor Index. Component Qorvo (QRVO 37.25, -1.53) underperformed in the sub-group after issuing below-consensus guidance.

Discretionary component Amazon (AMZN 502.13, -34.13) saw continued weakness, falling 6.4%. The stock has surrendered 20.5% since reporting its Q4 earnings on January 28th. Netflix (NFLX 82.79, -6.92) also extended its recent slide, diving 7.7%.

The commodity-sensitive energy space was hurt by falling oil prices as dollar strength weighed on the commodity and sector. WTI crude ended its pit session down 2.4% at $30.87/bbl. ConocoPhillips (COP 32.90, -2.42) extended its post-earnings losing streak as it declined 6.9%, registering its second consecutive loss after cutting its dividend.

Biotechnology showed relative weakness, evidenced by the 3.2% decline in the iShares Nasdaq Biotechnology ETF (IBB 256.24, -8.45). To be fair though, large-cap health care names Johnson & Johnson (JNJ 100.54, -3.36) and AbbVie (ABBV 53.12, -3.64) did not fare any better with respective declines of 3.2% and 6.4%.

Today's participation was above the recent average with more than 1.1 billion shares changing hands at the NYSE floor.

Treasuries fell to their lows after the release of January's Employment Situation Report but eventually inched higher even as the sell off in equities continued. The yield on the 10-yr note ended its day higher by one basis point at 1.85%.

Today's economic data included the January Nonfarm Payrolls report, December's Trade Balance, and Consumer Credit for December.

Nonfarm payrolls increased by 151,000 (Briefing.com consensus 188,000)
December nonfarm payrolls revised to 262,000 from 292,000
November nonfarm payrolls revised to 280,000 from 252,000
Private sector payrolls increased by 158,000 (Briefing.com consensus 183,000)
December private sector payrolls revised to 251,000 from 275,000
November private sector payrolls revised to 279,000 from 240,000
Unemployment rate was 4.9% (Briefing.com consensus 5.0%) versus 5.0% in December
The U6 unemployment rate, which accounts for the total unemployed plus persons marginally attached to the labor force and the underemployed, was unchanged at 9.9%
Persons unemployed for 27 weeks or more accounted for 26.9% of the unemployed versus 26.3% in December
January average hourly earnings were up 0.5% (Briefing.com consensus 0.3%) after increasing x% in December
Over the last 12 months, average hourly earnings have risen 2.5% versus 2.5% in December
Aggregate earnings were up 0.9%, which should be a positive portent for consumer spending
The average workweek was up 0.1 to 34.6 hours (Briefing.com consensus 34.5)
January manufacturing workweek was up 0.1 hours to 40.7 hours
Factory overtime was unchanged at 3.3 hours
The labor force participation rate was 62.7% versus 62.6% in December
The December trade deficit widened to $43.4 billion from an upwardly revised deficit of $42.2 bln (from $42.4 bln) for November (Briefing.com consensus estimate of -$43.5 billion).
The widening in the deficit was owed to imports increasing by $0.6 billion from November to $224.9 billion in December and exports decreasing by $0.5 billion to $181.5 billion.
On a year-over-year basis, exports were down 6.9% while imports were down 6.5%. December marked the 12th straight month that exports have declined on a year-over-year basis. Imports have declined year-over-year for the last nine months.
For 2015, the goods and services deficit increased by $23.2 billion to $531.5 billion with exports decreasing $112.9 billion to $2,230.3 billion and imports falling $89.7 billion to $2761.8 billion.
The real trade deficit averaged $60.2 billion in the fourth quarter versus $58.8 billion in the third quarter. That increase helps explain the negative contribution net exports had on fourth quarter GDP.
The Consumer Credit report for December showed an increase of $21.27 billion (Briefing.com consensus$16.50 billion). November's credit growth was revised higher to $14.02 billion from $13.95 billion.

Investors will not receive any economic data on Monday.

Russell 2000 -13.1% YTD
Nasdaq -12.9% YTD
S&P 500 -8.0% YTD
Dow Jones -7.0% YTD

Week in Review: Rate Hike Jitters Keep Market Pressured

The stock market endured another shaky week, which ended with a Friday pounding in the wake of an Employment Situation report for January that missed on the headline level (151K; Briefing.com consensus 188K), but better than expected hourly earnings growth (+0.5%; Briefing.com consensus 0.3%) re-invited fears about the Federal Reserve potentially hiking the fed funds rate again as early as March.

Including the Friday plunge, the S&P 500 lost 3.1% for the week while the Nasdaq underperformed, diving 5.4% for the week. The two indices ended the first week of February with respective year-to-date losses of 8.0% and 12.9%.

Nasdaq's underperformance was fueled by a woeful Friday session that featured a 43.6% collapse in the shares of LinkedIn (LNKD 108.38, -83.90) and a 49.4% dive in Tableau Software (DATA 41.33, -40.42) after both names issued cautious guidance. The broader technology sector lost 3.4% on Friday, ending the week lower by 5.4%.

The Friday plunge in equities followed two days of volatile action that ended with slight gains. Going into Friday, the slight upticks from Wednesday and Thursday appeared somewhat encouraging while dovish comments from New York Federal Reserve President William Dudley provided added, albeit fleeting, support. Mr. Dudley's remarks fostered a belief that the Fed will be cautious in its approach to future rate hikes, but Friday's Employment Situation report shook that belief.

The market will be on the lookout for policy cues next week when Fed Chair Janet Yellen takes part in the Semiannual Monetary Policy Report to the Congress starting with a February 10 appearance before the House Financial Services Committee at 10:00 ET. The next day, Chair Yellen will appear before the Senate Banking Committee, but the first day of testimony is likely to receive the highest degree of attention from market participants.

Treasuries ended the week just below their highs with the 10-yr yield registering its lowest weekly close (1.85%) since April 2015, which represented an eight-basis point decline for the week.

3:40 pm: [BRIEFING.COM]

The dollar index held its gains following its morning rally, which weighed on some commodities today
However, gold was not one of them, rallying from below $1146/oz to hitting $1170/oz just now
In floor trade, Apr gold closed the day up $0.10 at $1157.70/oz. Mar silver ended $0.10 lower at$14.77/oz.
WTI oil prices lost steam today, falling back below $31/barrel. Mar crude closed the session -2.4% at $30.87/barrel
Natural gas held today gains following its earlier rally.. front-month Mar nat gas ended today's pit session +5% at $2.06/MMBtu

3:00 pm:

[BRIEFING.COM] As the stock market enters its final hour, the major averages hover above their session lows. The tech-heavy Nasdaq (-3.2%) leads the S&P 500 (-2.0%). Including today's performance, the indices have lost a respective 5.4% and 3.2% this week.

The Consumer Credit report for December was just released by the Federal Reserve and it showed an increase of $21.27 billion while the Briefing.com consensus expected growth of $16.50 billion. November's credit growth was revised higher to $14.02 billion from $13.95 billion.

Treasures have ticked up in recent action but the yield on the 10-yr note remains higher by one basis point at 1.85%.

2:30 pm:

[BRIEFING.COM] The stock market has inched up from another new session low as the Nasdaq Composite (-3.3%) leads the downside while the S&P 500 (-2.0%) follows.

The heavyily-weighted health care sector (-2.2%) has extended its loss in recent trade as financials (-1.4%) and materials (-1.2%) outpace the space.

In the consumer staple space, Tyson Foods (TSN 57.22, +5.27) outperforms after reporting an EPS beat this morning. Tyson has climbed 9.9% today despite issuing lower that expected FY16 EPS and revenue guidance. Estee Lauder (EL 89.93, +2.32) has also benefited from an earnings and revenue beat as the company climbs 3.4%. Meanwhile. sector large-cap Coca-Cola (42.58, +0.05) has been able to defend its flat line after receiving an upgrade to "Neutral' at Susquehanna.

On the commodities front, WTI crude ended its pit session lower by 2.4% at $30.87/bbl.

2:00 pm:

[BRIEFING.COM] The major averages have bounced off a new session low with the S&P 500 (-1.7%) trailing the Dow Jones Industrial Average (-1.4%).

Two sectors currently trade in positive territory with telecom services (+0.7%) and utilities (+0.2%) leading. On the flipside, energy (-2.4%) has extended its loss as it follows consumer discretionary (-2.8%) and technology (-3.1%).

In the commodity-sensitive energy sector, ConocoPhillips (COP 32.63, -2.69) has extended its post earnings losing streak as it declines 7.6%. The stock has surrendered 15.5% since cutting its quarterly divided 66.0% yesterday. Oilfield service company Schlumberger (SLB 68.26, -2.27) has slid 3.3% despite news that the EU cleared the company's takeover of Cameron. Dow component Chevron (CVX 82.86, -1.93) has fallen 2.2% as it outperforms the broader space.

On the commodities front, WTI crude trades lower by 0.7% at $31.50/bbl as it approaches the end of its pit session at 14:30 ET.

1:35 pm:

[BRIEFING.COM] The major U.S. indices remain under pressure in afternoon trading as weakness in tech weighs heavily on stocks.

A look inside the Dow Jones Industrial Average shows that Nike (NKE 57.68, -2.49), Visa (V 71.12, -2.56), and Johnson & Johnson (JNJ 100.59, -3.31) are underperforming amid broad market weakness.

Conversely, Merck & Co (MRK 49.71, +1.12) is the best performing Dow component as shares display relative strength.

For the week, the DJIA is poised to close lower by ~1.3%.

1:05 pm:

[BRIEFING.COM] The major averages began their day under heavy selling pressure as participants ruminated over January's Employment Situation Report. While the report saw misses on headline metrics, it did point to a falling unemployment rate and growing wages, which could underpin the Fed's potential decision to continuing raising rates in 2016. In response to this uncertainty over the potential future of the fed funds rate, equity markets have sold off. At this juncture, the averages have extended their losses with the Nasdaq Composite (-2.6%) underperforming the S&P 500 (-1.6%) and the Dow Jones Industrial Average (-1.2%).

Today's Nonfarm Payroll report saw a miss on both nonfarm payroll increases (151,000 vs. expected 188,000) and private sector payroll increases (158,000 vs expected 183,000). Despite these eye-catching misses, the report goes on to cloud our view of the health of the economy as it reports that the unemployment rate has dropped to 4.9% (Breifng.com consensus 5.0%) and that hourly earnings rose 0.5% (Breifng.com consensus 0.3%). This seeming disconnect between data points has fueled anxiety over the health of the economy and whether the market as a whole could sustain further rate increases.

Eight of ten sectors currently trade in negative territory with countercyclical telecom services (+0.5%) leading the upside. On the flipside, heavyweight technology (-2.8%) and consumer discretionary (-2.5%) lead the downside.

Money center banks have shown relative strength in the financial sector (-1.1%) so far today with Wells Fargo (WFC 48.00, -0.24) and JPMorgan Chase (JPM 57.90, -0.50) showing declines of 0.5% and 0.9%, respectively. JPMorgan is also benefitting from an upgrade at UBS from 'Neutral' to 'Buy'. CME Group (CME 88.02, +1.69) outperforms after reporting a fourth quarter EPS beat on in-line revenue.

In the heavyweight technology space, large-cap constituents Facebook (FB 104.44, -6.05), Alphabet (GOOGL 707.16, -22.87), and Microsoft (MSFT 50.53, -1.47) have shown relative weakness with losses between 2.5% and 5.6%. Qorvo (QRVO 35.87, -2.91) underperforms in the PHLX Semiconductor Index after it issued revenue guidance below analyst expectations. Elsewhere, LinkedIn (LNKD 111.54, -80.70) has plunged 42.1% after a defensive outlook overshadowed a bottom line beat.

Amazon (AMZN 507.21, -28.84) has tumbled 5.4% in the consumer discretionary sector as heavy selling pressure continues to force the stock lower. The retail giant has plummeted 20.1% since reporting its Q4 earnings on January 28th. Fellow large-cap Starbucks (SBUX 55.27, -3.02) has declined 5.2%.

In the health care space (-1.4%), Johnson & Johnson (JNJ 100.36, -3.54) and AbbVie (ABBV 53.98, -2.78) show relative weakness. Biotechnology continues to underperform the broader sector, evidenced by the 3.0% decline in the iShares Nasdaq Biotechnology ETF (IBB 256.81, -7.88).

On the commodities front, oil has seen headwinds from today's dollar strength, leading the commodity lower by 0.8% at $31.46/bbl.

Treasuries have inched off their lows as the selloff in equities continues with the yield on the 10-yr note higher by two basis points at 1.86%.

Today's economic data has included the January Nonfarm Payrolls report and December Trade Balance. Meanwhile, December Consumer Credit (Briefing.com consensus $16.50 billion) will be reported at 15:00 ET.

Nonfarm payrolls increased by 151,000 (Briefing.com consensus 188,000)
December nonfarm payrolls revised to 262,000 from 292,000
November nonfarm payrolls revised to 280,000 from 252,000
Private sector payrolls increased by 158,000 (Briefing.com consensus 183,000)
December private sector payrolls revised to 251,000 from 275,000
November private sector payrolls revised to 279,000 from 240,000
Unemployment rate was 4.9% (Briefing.com consensus 5.0%) versus 5.0% in December
The U6 unemployment rate, which accounts for the total unemployed plus persons marginally attached to the labor force and the underemployed, was unchanged at 9.9%
Persons unemployed for 27 weeks or more accounted for 26.9% of the unemployed versus 26.3% in December
January average hourly earnings were up 0.5% (Briefing.com consensus 0.3%) after increasing x% in December
Over the last 12 months, average hourly earnings have risen 2.5% versus 2.5% in December
Aggregate earnings were up 0.9%, which should be a positive portent for consumer spending
The average workweek was up 0.1 to 34.6 hours (Briefing.com consensus 34.5)
January manufacturing workweek was up 0.1 hours to 40.7 hours
Factory overtime was unchanged at 3.3 hours
The labor force participation rate was 62.7% versus 62.6% in December
The December trade deficit widened to $43.4 billion from an upwardly revised deficit of $42.2 bln (from $42.4 bln) for November (Briefing.com consensus estimate of -$43.5 billion).
The widening in the deficit was owed to imports increasing by $0.6 billion from November to $224.9 billion in December and exports decreasing by $0.5 billion to $181.5 billion.
On a year-over-year basis, exports were down 6.9% while imports were down 6.5%. December marked the 12th straight month that exports have declined on a year-over-year basis. Imports have declined year-over-year for the last nine months.
For 2015, the goods and services deficit increased by $23.2 billion to $531.5 billion with exports decreasing $112.9 billion to $2,230.3 billion and imports falling $89.7 billion to $2761.8 billion.
The real trade deficit averaged $60.2 billion in the fourth quarter versus $58.8 billion in the third quarter. That increase helps explain the negative contribution net exports had on fourth quarter GDP.

12:30 pm:

[BRIEFING.COM] The stock market has ticked higher in recent action as it floats above recent lows. The Dow Jones Industrial Average (-0.9%) continues to outperform both the S&P 500 (-1.3%) and the Nasdaq Composite (-2.4%).

The leaderboard remains little changed with countercyclicals, with the exception of health care (-1.3%), leading the upside while heavyweights technology (-2.5%) and consumer discretionary (-2.2%) leading the downside.

In the health care space, large-caps Johnson & Johnson (JNJ 100.44, -3.46) and AbbVie (ABBV 53.98, -2.78) have shown relative weakness with declines of 3.3% and 5.0%, respectively. Biotechnology continues to underperform the broader sector, evidenced by the 3.0% decline in the iShares Nasdaq Biotechnology ETF (IBB 256.84, -7.85).

On the commodities front, WTI crude has slipped 1.1% at $31.38/bbl.

12:05 pm:

[BRIEFING.COM] The major averages have been able to bounce off their recent lows and now float above those levels with the Dow Jones Industrial Average (-1.1%) leading the S&P 500 (-1.6%).

At this juncture, only three cyclical sectors trade ahead of the broader market with industrials (-0.9%), materials (-1.0%), and financials (-1.0%) outperforming.

The financial space has shown relative strength today after the Employment Situation Report for January was released. Market participants may be eyeing the the 2.5% year-over-year growth in average hourly earnings and the 4.9% unemployment rate as supporting data for the Fed to continue raising rates. Money center banks have shown relative strength in the group with Wells Fargo (WFC 48.19, -0.06) and JPMorgan Chase (JPM 57.95, -0.45) showing declines of 0.2% and 0.7%, respectively. CME Group (CME 87.66, +1.33) outperforms after reporting a fourth quarter EPS beat on in-line revenue. Meanwhile, Goldman Sachs (GS 156.82, +0.33) benefits from an upgrade at UBS.

11:30 am:

[BRIEFING.COM] The stock market has ticked up off a new session low as the tech-heavy Nasdaq (-2.9%) trails the S&P 500 (-1.8%).

Countercyclical telecom services (+0.6%), utilities (-0.1%), and consumer staples (-0.4%) outperform while health care (-1.8%) trades in line with the broader market.

In the consumer discretionary space (-3.2%), Amazon (AMZN 502.74, -33.51) has tumbled 6.2% as heavy selling pressure forces the stock lower. The retail giant has plummeted 20.9% since reporting their Q4 earnings. Fellow large-cap Starbucks (SBUX 55.47, -2.83) has declined 4.9% today as Netflix (NFLX 84.77, -4.92) continues to see weakness.

On the commodities front, WTI crude has abandoned its rally with oil lower by 0.6% at $31.54/bbl.

11:00 am:

[BRIEFING.COM] The major averages trade at new session lows as a rebound in crude oil fails to sustain a lift in the broader market. The tech-heavy Nasdaq (-2.2%) continues underperforms the S&P 500 (-1.3%).

The heavily-weighted technology sector (-2.4%) and consumer discretionary space (-2.4%) now show the largest losses while commodity-sensitive energy (-1.7%) benefits from a bounce in crude oil.

In the tech space, large-cap constituents Facebook (FB 105.95, -4.50) and Alphabet (GOOGL 710.50, -19.53) underperform as they tumble 3.9% and 2.7%, respectively. The high-beta chipmakers narrowly underperform in the group, evidenced by the 2.5% decline in the PHLX Semiconductor Index. Component Qorvo (QRVO 36.38, -2.40) issued revenue guidance below analyst expectations yesterday during its earnings report. Tableau Software (DATA 45.33, -36.48) has plummeted 44.2% after issuing full year 2016 EPS guidance below consensus.

Treasuries continue to trade on their lows with the yield on the 10-yr note now higher by five basis points at 1.89%.

10:30 am: [BRIEFING.COM]

The dollar index is trading higher this morning, which is helping weigh on commodities such as metals
WTI oil sold off this morning, falling below the $32 level, hitting a new LoD in recent trade
Mar WTI crude oil is recovering some and is now -0.9% at $31.43/barrel
Natural gas has been in positive territory all day so far and is currently +3.7% at $2.04/MMBtu (Mar)
Gold, silver and copper are sitting near today's lows, following morning weakness
Apr gold is now -0.5% at $1151.60/oz, while Mar silver is -0.5% at $14.78/oz
Mar copper is now -1.6% at $2.10/lb

10:00 am:

[BRIEFING.COM] The major averages have bounced off fresh session lows with the Nasdaq Composite (-1.2%) trailing the S&P 500 (-0.6%).

At this juncture, telecom services (+1.0%) trades in positive territory with financials (+0.2%) and consumer staples (UNCH) as industrials (-0.1%) and materials (-0.2%) show relative strength.

In the health care space (-1.0%), biotechnology shows relative weakness, evidenced by the 1.8% decline in the iShares Nasdaq Biotechnology ETF (IBB 259.95, -4.74).

Treasuries have ticked lower as selling pressure persists in equities. The yield on the 10-yr note remains higher by three basis points at 1.87%.

9:45 am:

[BRIEFING.COM] The stock market opened its day on a a lower note as equities initially slide lower following the release of the January Employment Situation Report. The tech-heavy Nasdaq (-0.9%) underperforms the S&P 500 (-0.6%) and the Dow Jones Industrial Average (-0.3%).

Seven sectors trade in negative territory as energy (-2.0%) leads the retreat while the other decliners show losses between industrials (-0.3%) and technology (-1.1%). On the flipside, telecom services (+0.5%) shows the largest advance of the day while consumer staples (+0.3%) follows.

On the commodities front, WTI crude has declined 1.5% to $31.23/bbl as headwinds from a rebound in the dollar weigh on the commodity.

Treasuries have ticked off their lows but the yield on the 10-yr note remains higher by four basis points to 1.88%.

9:15 am: [BRIEFING.COM] S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -7.00.

The stock market is on track for a flat open with S&P 500 futures currently trading two points below fair value. Futures held a defensive stance prior to the release of January's Employment Situation Report but have since sold off in light of the disappointing figure. Equity futures have been able to bounce off their low but a decline in oil has not helped matters. Currently, WTI crude trades lower by 0.2% at $31.65/bbl. The U.S. Dollar Index rallied after the release of the data but has ticked lower from its high. The index is higher by 0.6% at 97.09.

In corporate news, consumer staples constituent Tyson Foods (TSN 55.00, +3.05) outperforms after beating analyst's EPS expectations on its Q4 earnings report. Meanwhile, financial giants JPMorgan Chase (JPM 58.69, +0.29) and Goldman Sachs (GS 157.44, +0.95) have both been able to make advances after receiving upgrades at UBS from 'Neutral' to 'Buy'.

On the economic front, January's Nonfarm Payrolls came in at 151,000 (Briefing.com consensus 188,000) while Nonfarm private payrolls added 158,000 against the 183,000 expected by the consensus. Separately, the December trade balance showed a deficit of $43.40 billion (Briefing.com consensus -$43.50 billion). December Consumer Credit (Briefing.com consensus $16.50 billion) will be reported at 15:00 ET.

Treasuries have fallen to fresh lows in recent trade with the yield on the 10-yr note higher by four basis points at 1.88%.

8:55 am: [BRIEFING.COM] S&P futures vs fair value: -5.50. Nasdaq futures vs fair value: -15.70.

The S&P 500 futures trade six points below fair value.

Equity markets across Asia ended the week on a mixed note with trading volume a bit below average as the region readies for Lunar New Year, which will keep markets in China shuttered through next week. The People's Bank of China injected another CNY150 billion in liquidity and set a modestly higher fix for the yuan, returning the exchange rate to levels from early January. Elsewhere, the Reserve Bank of Australia released a dovish policy statement, which overshadowed a disappointing Retail Sales report, which hit a five-month low.

In economic data:
Japan's December Leading Index 102.0 (expected 102.8; last 103.5) and Coincident Indicator -0.7% month-over-month (prior -1.4%)
Australia's January AIG Construction Index 46.3 (expected 46.8; previous 46.8) and December Retail Sales 0.0% month-over-month (expected 0.5%; prior 0.4%); +0.6% quarter-over-quarter (expected 0.9%; last 0.6%)

---Equity Markets---

Japan's Nikkei lost 1.3%, widening its 2016 decline to 11.6%. Most sectors finished the day in negative territory while energy (+1.9%) outperformed. On the downside, financials (-3.3%), consumer discretionary (-2.2%), utilities (-2.1%), and technology (-1.8%) saw the biggest declines. Toshiba, TDK, Furukawa, Daiwa House Industry, Pioneer, Mazda Motor, and Mizuho Financial lost between 4.6% and 11.2%.
Hong Kong's Hang Seng added 0.6%, narrowing this year's drop to 12.0%. Financials and energy-related names kept the index afloat with Bank of East Asia, China Life Insurance, Bank of China, and Ping An Insurance climbing between 1.7% and 5.5% while CNOOC and Petrochina both gained 2.2%.
China's Shanghai Composite surrendered 0.6%, widening its 2016 loss to 21.9%. Gemdale, Anhui Expressway, Jinshan Development Construction, and Luoyang Glass lost between 6.0% and 9.0%. Shangdong Gold Mining and Hainan Island Construction outperformed with gains of 10.0% apiece.

Major European indices trade in mixed fashion with Germany's DAX (-0.2%) underperforming. Financials have been in focus during the early portion of the session after BNP Paribas released its earnings and raised its dividend.

Economic data was limited:
Germany's December Factory Orders -0.7% month-over-month (expected -0.5%; previous 1.5%)
France's December Current Account deficit EUR700 million (prior -EUR1.50 billion) and December trade deficit -EUR3.90 billion (consensus -EUR4.40 billion; last -EUR4.50 billion)

---Equity Markets---

Germany's DAX has ticked declined 0.2%. Fresenius is the weakest performer, down 2.2%, while Bayer, Adidas, Beiersdorf, and SAP show losses between 0.8% and 1.3%. On the upside, Volkswagen, BMW, and Daimler are up between 1.6% and 2.8%. Financials also outperform with Deutsche Bank and Commzerbank up 1.8% and 2.7%, respectively.
UK's FTSE has ticked higher by 0.1% with miners pacing the advance. Anglo American and Glencore have spiked 9.5% and 4.3%, respectively, while Royal Bank of Scotland and Tesco also outperform with gains close to 2.4% apiece. On the downside, countercyclical names lag with Royal Mail, National Grid, United Utilities, and Severn Trent down between 0.6% and 1.3%.
France's CAC trades higher by 0.3% with BNP Paribas spiking 4.6% after reporting upbeat results. Peers Societe Generale and Credit Agricole follow with respective gains of 2.3% and 1.6% while ArcelorMittal lags, trading lower by 7.1%.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: -4.80. Nasdaq futures vs fair value: -15.70.

The S&P 500 futures trade five points below fair value.

January Nonfarm Payrolls came in at 151,000 while the Briefing.com consensus expected a reading of 188,000. The prior month's reading was revised down to 262,000 from 292,000. Nonfarm private payrolls added 158,000 against the 183,000 expected by the consensus. The unemployment rate slipped to 4.9% while the Briefing.com consensus expected the rate to hold at 5.0%.

Hourly earnings rose 0.5%, while the consensus expected an uptick of 0.3%. The average workweek was reported at 34.6 while the consensus expected a reading of 34.5.

Separately, the December trade balance showed a deficit of $43.40 billion while the Briefing.com consensus expected the deficit to come in at $43.50 billion. The November reading was revised to a deficit of $42.2 billion from $42.4 billion.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: -1.50.

U.S. equity futures trade little changed with S&P 500 futures hovering near fair value. Futures have been fairly restrained this morning as participants look ahead to the Employment Situation Report for January.

On the economic front, January Nonfarm Payrolls report (Briefing.com consensus 188k) and December Trade Balance (Briefing.com consensus -$43.5 billion) will be reported at 8:30 ET while December Consumer Credit (Briefing.com consensus $16.50 billion) will cross the wires at 15:00 ET.

Treasuries trade off their overnight highs but the yield on the 10-yr note remains lower by two basis point to 1.85%.

In U.S. corporate news of note:

LinkedIn (LNKD 136.51, -55.77): -29.0% after the company issued below consensus Q1 and FY16 EPS after reporting an earnings beat after yesterday's close.
Tyson Foods (TSN 53.00, +1.05): +2.0% following an EPS beat in their earnings report on lighter than expected revenue
Outerwall (OUTR 26.03, -6.66): -20.4% after the company guided FY16 core EPS lower to $5.00-6.30 following reporting Q4 EPS that may not compare to consensus expectations
Netsuite (N 66.93, -3.22): -4.6% following the company issuing lower than expected Q1 EPS guidance
Tableau Software (DATA 50.00, -31.75): -38.8% after reporting an EPS and revenue beat in their Q4 earnings report but issuing Q1 and FY16 guidance below analyst estimates

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei -1.3%, Hong Kong's Hang Seng +0.6%, China's Shanghai Composite -0.6%
In economic data:
Japan's December Leading Index 102.0 (expected 102.8; last 103.5) and Coincident Indicator -0.7% month-over-month (prior -1.4%)
Australia's January AIG Construction Index 46.3 (expected 46.8; previous 46.8) and December Retail Sales 0.0% month-over-month (expected 0.5%; prior 0.4%); +0.6% quarter-over-quarter (expected 0.9%; last 0.6%)
In news:
The People's Bank of China injected another CNY150 billion in short-term funds ahead of the Lunar New Year, which will keep the Chinese stock market closed throughout next week

Major European indices trade mostly higher. France's CAC +0.4%, UK's FTSE +0.4%, and Germany's DAX -0.2%. Elsewhere, Italy's MIB +0.3% and Spain's IBEX +1.1%
Economic data was limited:
Germany's December Factory Orders -0.7% month-over-month (expected -0.5%; previous 1.5%)
France's December Current Account deficit EUR700 million (prior -EUR1.50 billion) and December trade deficit -EUR3.90 billion (consensus -EUR4.40 billion; last -EUR4.50 billion)
Among news of note:
France's CAC has shown relative strength with leadership from BNP Paribas after the bank reported above-consensus results and boosted its dividend

5:54 am: [BRIEFING.COM] S&P futures vs fair value: +3.30. Nasdaq futures vs fair value: +6.00.

5:50 am: [BRIEFING.COM] Nikkei...16820...-225.40...-1.30%. Hang Seng...19288...+105.10...+0.60%.

5:50 am: [BRIEFING.COM] FTSE...5933.4...+34.60...+0.60%. DAX...9410.36...+17.00...+0.20%.

Special thanks to Bloomberg, Briefing, 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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