4:15 pm: [BRIEFING.COM] Tuesday's positive sentiment lingered throughout Wednesday's session as the benchmark S&P 500 (+0.1%) chalked up its second win of the week. The Nasdaq (+0.4%) also settled higher while the Dow (-0.2%) finished a tad lower.
While the macro movement was rather subdued on Wednesday, a variety of catalysts mixed things up on the micro level. Maybe the most notable of which was the latest crude oil inventory report from the EIA, which showed a smaller than expected build of 0.9 million barrels (consensus +1.4 million). The reading awoke the bulls in the crude oil futures market and prompted WTI crude to settle 2.2% higher at $49.47/bbl. The energy sector (1.2%) capitalized on the commodity's positive performance to settle at the top of the day's leaderboard.
Amazon (AMZN 874.32, +18.32) also influenced today's price action, jumping 2.1% to push the consumer discretionary sector (+0.6%) to the second spot in the day's standings. Today's gain leaves the internet retail giant 3.3% higher since Monday when it bounced off its 50-day moving average. The positive performance was also reflected in the 2.0% increase in the SPDR S&P Retail ETF (XRT 42.54, +0.82).
Elsewhere on the corporate front, Vertex Pharmaceuticals (VRTX 108.01, +18.34) propped up the biotech industry after reporting that an experimental cystic fibrosis drug improved lung function. VRTX shares spiked 20.5% and led the iShares Nasdaq Biotechnology ETF (IBB 294.42, +2.41) higher by 0.8%, but it still wasn't enough to give the health care sector (unch) an edge on its peers.
The heavily-weighted financial group (-0.5%) kept the market's gain in check, but nearly all of the remaining sectors--industrials, materials, technology, consumer staples, telecom services, and real estate--failed to distinguish themselves from the broader market, settling within 0.3% of their respective flat lines. Meanwhile, the utilities space (-0.5%) finished with the financial group at the bottom of the day's leaderboard, but its impact was minimal due to its low market capitalization.
In the Treasury market, U.S. sovereign debt settled with a modest gain for the second time this week. The benchmark 10-yr yield closed four basis points lower at 2.38%.
On the data front, today's economic releases were limited to February Pending Home Sales and the weekly MBA Mortgage Applications Index:
Pending Home Sales for February rose 5.5% while the Briefing.com consensus expected an increase of 2.4%. Today's reading follows an unrevised 2.8% drop in January.
The weekly MBA Mortgage Applications Index decreased 0.8% to follow last week's 2.7% decline.
Tomorrow, investors will receive the third estimate of fourth quarter GDP (Briefing.com consensus 2.0%) and Initial Claims (Briefing.com consensus 245,000) at 8:30 ET.
Nasdaq Composite +9.6% YTD
S&P 500 +5.5% YTD
Dow Jones Industrial Average +4.5% YTD
Russell 2000 +1.0% YTD
3:45 pm: [BRIEFING.COM]
Energy futures posted solid gains today
Oil prices got a boost from storage data, popping back above the $49/barrel level
At the end of today's session, May WTI crude oil futures closed out 2.2% higher at $49.47/barrel
May natural gas also showed some nice gains, finishing the session +4.2% at $3.23/MMBtu
Modest moves in ag prices ahead of Friday's planting and grain stocks reports
May corn finished the day +0.3% at $3.58/bushel, May wheat +0.2% at $4.25/bu and May soybeans -0.1% at $9.69/bu
Metals didn't show too much action either with May silver ending flat at $18.25/oz and May copper closed flat as well, ending at $2.68/lb
Apr gold slipped 0.2% to $1253.30/oz
3:00 pm:
[BRIEFING.COM] The stock market trades modestly higher moving into the final stretch of action with the S&P 500 holding a gain of 0.2%.
Amazon (AMZN 874.35, +18.35) continues to push farther into positive territory this afternoon, hitting a fresh all-time high along the way. The internet retail giant has added over 3.2% since bouncing off its 50-day moving average on Monday. The consumer discretionary sector hovers near the top of the day's leaderboard with a gain of 0.6%.
On the earning front, lululemon athletica (LULU 65.61, +1.94) will report its quarterly results after today's close. The company surged 15.0% immediately following its last earnings report on December 7, but that gain has slowly dwindled to 10.0% over the last few months. The athletic retailer has added 3.2% in today's session.
2:30 pm:
[BRIEFING.COM] The major averages have ticked up in recent action with the S&P 500 now trading higher by 0.2%.
For the most part, sectors have held their earlier positions on the day's leaderboard throughout the afternoon session. The energy sector (+1.1%) still holds a comfortable lead on the consumer discretionary group (+0.6%) while the materials (+0.1%), technology (+0.2%), health care (+0.2%), and consumer staples (+0.2%) spaces trade just a tick above their unchanged marks. On the flip side, the financial group (-0.4%) is at the back of the pack while the utilities, telecom services, and real estate sectors show losses between 0.1% and 0.3%.
The industrial sector trades flat as losses from airlines have been balanced by an uptick in large-cap names like Boeing (BA 177.78, +0.42), General Electric (GE 29.65, +0.03), and Caterpillar (CAT 93.03, +0.07).
2:00 pm:
[BRIEFING.COM] The S&P 500 trades just above its unchanged mark with a gain of 0.1%.
The top-weighted technology sector (+0.1%) has transitioned into positive territory as of late with Apple (AAPL 144.23, +0.41) advancing to its best level of the day. However, despite the sector's uptick, chipmakers are still weighing on the tech group with the PHLX Semiconductor Index showing a loss of 0.3%.
Micron Technology (MU 28.48, -0.22) has led the semiconductor retreat with a loss of 0.8% in today's session. However, MU shares remain 7.8% higher since the company reported better than expected earnings and upbeat guidance last Thursday (March 23). For the year, Micron Technology holds an impressive gain of 30.0%.
1:30 pm:
[BRIEFING.COM] The major U.S. indices currently trade mixed, while the Dow Jones Industrial Average lags.
A look inside the Dow shows that UnitedHealth Group (UNH 163.56, -1.79), Travelers (TRV 120.71, -1.09), & Cisco (CSCO 33.75, -0.27) are underperforming.
Conversely, Merck (MRK 63.95, +0.61) is the best-performing Dow component as healthcare advances amid today's flat trade.
For the week, the DJIA is up 0.78%.
Elsewhere, at the top of the hour, the Treasury's $28 bln 7-year auction drew a high yield of 2.215% on a bid-to-cover of 2.56.
1:00 pm:
[BRIEFING.COM] There's been some action at the micro level in the first half of Wednesday's session, but it hasn't translated to much macro movement as the major averages hover in the neighborhood of their unchanged marks. The S&P 500 trades flat while the Dow (-0.3%) and the Nasdaq (+0.3%) are nestled on opposite sides of the benchmark index.
The energy sector (+1.1%) leads its peers by a relatively wide margin this afternoon following the latest crude oil inventory report from the Energy Information Administration. The EIA reading showed a smaller than expected build of 0.9 million barrels (consensus +1.4 million), which awoke the bulls in the crude oil futures market. The energy component trades 2.0% higher at $49.33/bbl, after being up around 0.5% prior to the EIA report.
To a lesser degree, the consumer discretionary (+0.4%), health care (+0.2%), and consumer staples (+0.1%) sectors have also propped up the broader market. Vertex Pharmaceuticals (VRTX 110.21, +20.55) has had a lot to do with the health care sector's outperformance, spiking 23.1%, after reporting that an experimental cystic fibrosis drug improved lung function. VRTX's jump has also left the iShares Nasdaq Biotechnology ETF (IBB 296.66, +4.65) higher by 1.6%.
On the other hand, the consumer discretionary and consumer staples groups have relied on retailers in today's session, evidenced by the 1.2% increase in the SPDR S&P 500 Retail ETF (XRT 42.24, +0.51). Large-cap XRT components like Amazon (AMZN 870.07, +14.11) and Wal-Mart (WMT 70.79, +0.46) have done their part in advancing the industry group by adding 1.6% and 0.7%, respectively.
The largest sectors by weight, financials (-0.5%) and technology (-0.1%), have limited the impact of the aforementioned groups. The remaining sectors--industrials, materials, utilities, telecom services, and real estate--trade with financials and technology in the red, but their losses have been held in check.
In the Treasury market, U.S. sovereign debt trades modestly higher with the benchmark 10-yr yield three basis points lower at 2.39%. It's worth noting that Boston Fed President Eric Rosengren said that he would like to see four rate hikes in 2017, which represents the most hawkish outlook that has been offered by a Fed official to date. However, the impact on the Treasury market was minimal as Mr. Rosengren doesn't have a vote on this year's FOMC.
On the data front, today's economic releases were limited to February Pending Home Sales and the weekly MBA Mortgage Applications Index:
Pending Home Sales for February rose 5.5% while the Briefing.com consensus expected an increase of 2.4%. Today's reading follows an unrevised 2.8% downtick in January.
The weekly MBA Mortgage Applications Index decreased 0.8% to follow last week's 2.7% downtick.
12:30 pm:
[BRIEFING.COM] The major averages continue to trade in the neighborhood of their unchanged marks. The Nasdaq and the S&P 500 hold gains of 0.2% and 0.1%, respectively, while the Dow shows a loss of 0.2%.
The energy (+1.1%), consumer discretionary (+0.5%), health care (+0.2%), and consumer staples (+0.1%) sectors are propping up the broader market early this afternoon, outweighing the underperformance of the heavily-weighted financials (-0.4%) and technology (unch) groups.
Chipmakers have weighed on the tech space in today's session, evidenced by the 0.4% decrease in the PHLX Semiconductor Index. Likewise, large-cap names like Microsoft (MSFT 65.08, -0.21) and Apple (AAPL 143.70, -0.09) have faced resistance as they hover near their all-time highs. The two tech giants are down 0.3% and 0.1%, respectively.
12:00 pm:
[BRIEFING.COM] Equity indices have ticked down late this morning with the S&P 500 returning to its flat line after holding a slim gain earlier in the session.
Vertex Pharmaceuticals (VRTX 109.80, +20.07) has soared 22.2% in today's session after reporting that an experimental cystic fibrosis drug improved lung function. The company's spike has led the iShares Nasdaq Biotechnology ETF (IBB 295.23, +3.25) higher by 1.1%. Meanwhile, the health care sector (unch) trades a step ahead of the broader market.
Elsewhere, Boston Fed President Eric Rosengren said that he would like to see four rate hikes in 2017, which marks the steepest proposal offered by a Fed official to date. However, the impact on the Treasury market has been minimal as Mr. Rosengren doesn't have a vote on this year's FOMC. The benchmark 10-yr yield still trades three basis points lower at 2.39%.
11:30 am:
[BRIEFING.COM] The major averages trade mixed late this morning with the Dow showing a loss of 0.2% while the Nasdaq (+0.2%) outperforms.
Retailers have given the consumer discretionary sector (+0.4%) an edge over its peers in today's session, evidenced by the 1.3% increase in the SPDR S&P Retail ETF (XRT 42.28, +0.56). Discount retailer Ollie's Bargain Outlet (OLLI 34.15, +1.00) is one of the XRT's top-performing components after reporting better than expected earnings on in-line sales and issuing upside earnings guidance. OLLI shares trade 3.0% higher at a fresh all-time high.
Internet commerce giant Amazon (AMZN 868.77, +12.77) has also underpinned the consumer discretionary sector's outperformance, adding 1.5%. AMZN shares trade at their best level of all-time after challenging their 50-day moving average on Monday.
11:00 am:
[BRIEFING.COM] Stocks have moved higher in tandem with crude oil following the latest inventory report from the Energy Information Administration. The S&P 500 trades higher by 0.1%.
The EIA reading showed a smaller than expected build of 0.9 million barrels (consensus +1.4 million). The commodity's gain tripled in size following the release, pushing the energy sector (+1.0%) to the top spot on the day's leaderboard. WTI crude now trades 1.5% higher at $49.11/bbl.
Outside of the energy sector, all other spaces trade within 0.4% of their respective flat lines. The modest movement points to a cautious sentiment within the market as investors balance the stock market's record high level against the fear of missing out on future gains.
10:40 am: [BRIEFING.COM]
WTI crude oil futures spiked higher following the weekly EIA storage inventory data, which showed smaller-than-expected build in oil data and sizable draws in gasoline and distillate storage
May crude oil is now +1.4% at $49.06/barrel
In other energy, May natural gas futures are trading +1.6% at $3.23/MMBtu
Metals are showing some weakness this morning as the dollar index trades higher
Apr gold is now -0.3% at $1251.70/oz, while May silver is -0.3% at $18.20/oz
In base metals, May copper is unchanged at $2.68/lb
10:00 am:
[BRIEFING.COM] The Nasdaq (+0.2%) trades slightly ahead of the S&P 500 (unch) as biotech names show relative strength.
Just released, Pending Home Sales for February rose 5.5% while the Briefing.com consensus expected an increase of 2.4%. Today's reading follows an unrevised 2.8% downtick in January.
9:45 am:
[BRIEFING.COM] The S&P 500 opens Wednesday's session with a slim loss of 0.1%.
Nearly all sectors trade in the red with the lightly-weighted utilities group (-0.7%) leading the retreat. On the flip side, the telecom services (+0.1%) and consumer discretionary (+0.1%) spaces have shown relative strength.
Amazon (AMZN 860.48, +4.48) has underpinned the consumer discretionary sector's outperformance. AMZN shares trade higher by 0.7%.
9:15 am: [BRIEFING.COM] S&P futures vs fair value: -2.30. Nasdaq futures vs fair value: +2.90.
Investors have tapped the brakes this morning following yesterday's unexpected rally. The S&P 500 futures trade two points below fair value, indicating a slightly lower open for the stock market on Wednesday.
The pound (1.2418) has given up some ground against the U.S. dollar this morning, down 0.2%, after the U.K. triggered Article 50 to launch the Brexit process. The European Union and the United Kingdom will now have 18 months to negotiate the terms of their relationship going forward.
U.S. Treasuries continue to climb farther into positive territory this morning with the benchmark 10-yr yield now trading three basis points lower at 2.39%.
Crude oil clings to a slim gain, up 0.3% at $48.52/bbl. The API reported a larger than expected build of 1.9 million barrels on Tuesday evening, but the bearish news has been mitigated by a conflict in Libya that has cut into production. Also of note, the EIA will release its weekly inventory report later this morning at 10:30 ET.
In U.S. corporate news, Vertex Pharmaceuticals (VRTX 108.25, +18.58) has surged 21.0% in pre-market trade after reporting that an experimental cystic fibrosis drug improved lung function. Restoration Hardware (RH 44.20, +6.20) also trades solidly higher, up 16.3%, after reporting in-line results and issuing positive revenue guidance.
On the data front, investors will receive February Pending Home Sales (Briefing.com consensus 2.4%) at 10:00 ET.
8:51 am: [BRIEFING.COM] S&P futures vs fair value: -1.80. Nasdaq futures vs fair value: +2.60.
The S&P 500 futures trade two points below fair value.
Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note after spending the day inside narrow ranges. Chinese banks displayed relative strength, benefitting from an uptick in interest rates and better than expected results from AgBank. Staying in China, Moody's warned about a property market adjustment following a recent spike in prices, coupled with higher interest rates and tighter liquidity management from the People's Bank of China.
Economic data was limited:
Japan's February Retail Sales +0.1% year-over-year (consensus 0.5%; last 1.0%)
South Korea's April Manufacturing BSI Index 78 (last 79)
---Equity Markets---
Japan's Nikkei added 0.1%. Kansai Electric Power surged 8.2% after an appeals court overturned a ruling, which prohibited the company from operating two of its nuclear reactors. TEPCO also outperformed, jumping 4.5%. Panasonic, Sony, SUMCO, Trend Micro, Advantest, and Komatsu advanced between 1.3% and 2.8%.
Hong Kong's Hang Seng rose 0.2% with help from roughly half of its components. Lenovo, AIA Group, Tencent Holdings, and Galaxy Entertainment gained between 0.6% and 1.2%. Financials like Bank of China, China Construction Bank, HSBC, and BoC Hong Kong added between 0.3% and 0.8%.
China's Shanghai Composite ended lower by 0.4%. Lanzhou Greatwall Electrical, Wuhan Hanshang, Shanghai Potevio, Ningbo Bird, and CITIC Guoan Wine recored losses between 4.7% and 6.5%.
India's Sensex climbed 0.4% with financials providing leadership. SBI and ICICI Bank led with gains close to 1.9% apiece while HDFC Bank and AXIS Bank posted respective gains of 0.6% and 0.2%. On the downside, Hero MotoCorp, Tata Motors, Mahindra&Mahindra, and Maruti Suzuki lost between 0.6% and 3.2%.
Major European indices trade in the neighborhood of their flat lines, taking the recent news from Brussels in stride. As expected, the British delegation met with European Council President Donald Tusk and presented him with a letter that triggers Article 50 of the Lisbon Treaty. An 18-month negotiation period is expected to follow. With all attention on the EU-UK relationship, Greek-related headlines have been cast to the backburner. However, it is worth noting that German Finance Minister Wolfgang Schaeuble voiced opposition to deferring Greek interest payments, saying this would be equivalent to a new loan. Greek officials have until April 7 to come to terms with EU representatives to avoid a funding shortage. That said, the Bank of Greece reportedly has more than EUR10 billion in funds that could be accessed to buy some additional time for negotiations.
In economic data:
Germany's February Import Price Index +0.7% month-over-month (expected 0.3%; last 0.9%); +7.4% year-over-year (consensus 7.0%; previous 6.0%)
UK's February Mortgage Approvals 68,320 (expected 69,900; last 69,110) and M4 Money Supply -0.3% month-over-month (expected 0.5%; last 0.9%)
France's March Consumer Confidence held at 100, as expected
Italy's March Business Confidence 107.1 (expected 106.3; previous 106.4) and Consumer Confidence 107.6 (consensus 106.6; prior 106.6)
Swiss March ZEW Expectations 29.6 (last 19.4) and February Consumption Indicator 1.50 (last 1.44)
---Equity Markets---
UK's FTSE is lower by 0.1%. Homebuilders Taylor Wimpey, Barratt Developments, and Persimmon are down between 0.9% and 1.6%. Select financials also underperform with Experian, Standard Life, Old Mutual, and Standard Chartered down between 0.2% and 1.1%.
France's CAC trades higher by 0.3%. Growth-sensitive names like Engie, TechnipFMC, Peugeot, ArcelorMittal, and Schneider Electric display gains between 0.8% and 2.9%. On the downside, Cap Gemini has given up 1.1% while consumer names like Accor and Danone are down 0.7% and 0.2%, respectively.
Germany's DAX outperforms with a gain of 0.5%. Daimler leads with a gain of 1.5% while Volkswagen and BMW are both higher by 0.2%. Heavyweights Siemens, Thyssenkrupp, Allianz, and BASF have added between 0.6% and 1.2%. On the downside, Infineon has slid 1.4%.
8:29 am: [BRIEFING.COM] S&P futures vs fair value: -1.80. Nasdaq futures vs fair value: +2.60.
Wall Street is poised for a slightly lower open on Wednesday as the S&P 500 futures trade two points below fair value.
Earlier this morning, the U.K. officially launched the Brexit process when Britain's ambassador to the European Union hand delivered the formal withdrawal notification to European Council President Donald Tusk. The two sides will now have 18 months to negotiate the specific terms of their relationship going forward.
The pound (1.0750) has held up relatively well against the U.S. dollar in the aftermath while the euro (1.0752) has tumbled 0.6% against the greenback. However, since the referendum on June 23, the pound has given up over 16.0% against the U.S. dollar.
7:53 am: [BRIEFING.COM] S&P futures vs fair value: -3.30. Nasdaq futures vs fair value: -2.10.
Equities have hit pause this morning in the wake of yesterday's unexpected climb that broke the Dow's longest losing streak since 2011 (eight days). The S&P 500 futures trade three points below fair value.
Crude oil holds a modest gain after an armed group of individuals shut down pipelines in Libya due to a wage dispute. The disruption is reducing output by an estimated 250,000 barrels per day. Also of note, the Energy Information Administration will release its weekly inventory report later this morning at 10:30 ET. WTI crude trades 0.5% higher at $48.61/bbl.
U.S. Treasuries trade just a tick above their flat lines this morning with the benchmark 10-yr yield one basis point lower at 2.41%.
On the data front, the weekly MBA Mortgage Applications Index, which was released earlier this morning, decreased 0.8% to follow last week's 2.7% downtick.
In addition, investors will receive February Pending Home Sales (Briefing.com consensus 2.4%) at 10:00 ET.
In U.S. corporate news:
Vertex Pharmaceuticals (VRTX 108.00, +18.33): +20.4% after reporting that an experimental cystic fibrosis drug improved lung function.
Dave & Busters (PLAY 59.46, -2.73): -4.4% after cautious sales guidance overshadowed better than expected earnings.
Restoration Hardware (RH 44.00, +6.00): +15.8% after issuing above-consensus revenue guidance.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note after spending the day inside narrow ranges. Japan's Nikkei +0.1%, Hong Kong's Hang Seng +0.2%, China's Shanghai Composite -0.4%, India's Sensex +0.4%.
Economic data was limited:
Japan's February Retail Sales +0.1% year-over-year (consensus 0.5%; last 1.0%)
South Korea's April Manufacturing BSI Index 78 (last 79)
In news:
Chinese banks displayed relative strength, benefitting from an uptick in interest rates and better than expected results from AgBank.
Also in China, Moody's warned about a property market adjustment following a recent spike in prices, coupled with higher interest rates and tighter liquidity management from the People's Bank of China.
Major European indices trade in the neighborhood of their flat lines, taking the recent news from Brussels in stride. UK's FTSE -0.3%, France's CAC unch, Germany's DAX +0.3%.
In economic data:
Germany's February Import Price Index +0.7% month-over-month (expected 0.3%; last 0.9%); +7.4% year-over-year (consensus 7.0%; previous 6.0%)
UK's February Mortgage Approvals 68,320 (expected 69,900; last 69,110) and M4 Money Supply -0.3% month-over-month (expected 0.5%; last 0.9%)
France's March Consumer Confidence held at 100, as expected
Italy's March Business Confidence 107.1 (expected 106.3; previous 106.4) and Consumer Confidence 107.6 (consensus 106.6; prior 106.6)
Swiss March ZEW Expectations 29.6 (last 19.4) and February Consumption Indicator 1.50 (last 1.44)
In news:
As expected, the British delegation met with European Council President Donald Tusk and presented him with a letter that triggers Article 50 of the Lisbon Treaty. An 18-month negotiation period is expected to follow.
German Finance Minister Wolfgang Schaeuble voiced opposition to deferring Greek interest payments, saying this would be equivalent to a new loan. Greek officials have until April 7 to come to terms with EU representatives to avoid a funding shortage. That said, the Bank of Greece reportedly has more than EUR10 billion in funds that could be accessed to buy some additional time for negotiations.
5:49 am: [BRIEFING.COM] S&P futures vs fair value: -3.30. Nasdaq futures vs fair value: -3.10.
5:49 am: [BRIEFING.COM] Nikkei...19217.5...+14.60...+0.10%. Hang Seng...24392...+46.20...+0.20%.
5:49 am: [BRIEFING.COM] FTSE...7341.76...-1.70...0.00%. DAX...12205...+56.00...+0.50%.
Special thanks to Bloomberg, Briefing, Reuters and Yahoo! Finance for their market summaries. Also, thank you for the review of TheStrategyLab performance record...hopefully the links will be useful for you. 
Best Regards,
M.A. Perry
TheStrategyLab Price Action Trading
Trader and Founder of
WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader 
@ http://stocktwits.com/wrbtraderhttp://www.thestrategylab.com Phone: +1 708 572-4885
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