Trade Results of M.A. Perry Trader and Founder of
WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
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click on the above image to view today's performance verification Price Action Trade Performance for Today: Emini TF ($TF_F) futures @
$1,510.00 dollars or +15.10 points, EuroFX 6E futures @
$0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @
$0.00 dollars or +0.00 points.
Total Profit @ $1,510.00 dollars.
Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @
The ICE Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @
CMEGroupCME EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @
CMEGroupS&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @
CMEGroup In addition, all trades were posted real-time in the free
#TheStrategyLab chat room. You can read
today's #TheStrategyLab trading chat room logs for details (e.g. time, price, contract size) about each one of my trades from
entry to exit along with price action commentary as the trade traversed in comparison to what's shown in the above image...all archived
@ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=110&t=1370 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 or position trade.
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
prior to purchasing the Volatility Trading Report (VTR).
Trading Plan Daily Routine @
http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=195&t=1654 -----------------------------
Market Summaries The below summaries by
Bloomberg,
CNNMoney,
Reuters and
Yahoo! Finance helps me to do a quick review of the fundamentals,
FED/
ECB/
IMF actions or any important global economic events (e.g.
Eurozone,
MarketWatch.com) that had an impact on today's price action. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in
trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events while using WRB Analysis from one trade to the next trade to give me the
market context 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.
U.S. Market Wrap Nov. 16 (Bloomberg) -- Bloomberg's Dina Gusovsky reports on the performance of the U.S. equity market today. U.S. stocks rose, erasing earlier losses, as House Speaker John Boehner said he had constructive talks with President Barack Obama on the budget and would accept government revenue increases coupled with spending cuts.
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Market Update 4:20 pm : The major averages began the day on a down note and continued declining for the first two hours of the session. As the S&P 500 reached its lows, Congressional leaders held a press conference regarding the progress of fiscal cliff negotiations. During the public statement, Senator Harry Reid said that officials would not wait until the last day of December, and could agree on the framework for a deal prior to the deadline. The remarks helped the indices surge to session highs, where they spent the majority of the afternoon. The S&P 500 built on its gains and finished higher by 0.5%.
High-yielding telecom stocks continued seeing weakness as the country nears the fiscal cliff. Morning reports indicated the White House is considering a package which would delay the mandatory spending cuts scheduled to go into effect on January 1, 2013. However, this was received as a delay of the decision, rather than a step towards a concrete solution. The telecommunications sector slid 0.6% and AT&T (T 33.14, -0.28), Sprint Nextel (S 5.48, -0.06), and Verizon (VZ 41.40, -0.30) all lost between 0.7% and 1.1%.
Among technology stocks, Apple (AAPL 527.68, +2.06) registered a gain of 0.4% as the stock attempts to recover from recent softness.
A handful of notable technology companies have reported earnings since yesterday's close. Dell (DELL 8.86, -0.70) settled lower by 7.3% after missing on earnings and revenue. During the third quarter, the computer manufacturer saw its top line decline 10.7% year-over-year, to $13.72 billion. In addition, the company issued downside fourth quarter revenue guidance and reaffirmed its full-year 2013 earnings expectations.
Meanwhile, Applied Materials (AMAT 10.15, -0.15) reported strong results, but issued cautious guidance. The semiconductor manufacturer earned $0.06 on $1.65 billion in revenue, which beat the Capital IQ consensus estimates. However, forward guidance was a point of concern as the company expects first quarter earnings and revenue below consensus.
Lastly, Autodesk (ADSK 31.48, +0.98) rose by 3.2% after reporting mixed earnings. The software provider's earnings exceeded estimates by $0.04, while its revenue of $548 million fell short of estimates. Similar to Applied Materials, Autodesk is cautious about its upcoming quarter as it expects earnings and revenue to miss consensus estimates.
Looking at the financial sector, the SPDR Financial Select Sector ETF (XLF 15.28, +0.10) added 0.7%. Even though the proxy ETF traded ahead of the broader market, major financials were mixed. JPMorgan Chase (JPM 39.53, +0.14) added 0.4% after reaching a settlement with the Securities and Exchange Commission regarding Bear Stearns and JPMorgan residential mortgage-backed securities. As part of the settlement, JPMorgan will pay approximately $297 million in penalties. Credit Suisse (CS 21.94, -0.43) was also named in the settlement and will pay approximately $120 million in fines. Looking at other majors, Citigroup (C 34.98, -0.23) slid 0.7% while Wells Fargo (WFC 31.94, +0.37) outperformed with a gain of 1.2%.
The Dow Jones Transportation Average underperformed the industrial average and settled lower by 0.5%. Out of the five airlines which are part of the transportation average, four saw notable losses. Delta Air Lines (DAL 9.33, -0.16) fell 1.7%, and JetBlue Airways (JBLU 4.96, -0.07) lost 1.4%. Meanwhile, Southwest Airlines (LUV 8.93, +0.09) outperformed and added 1.0%. As 17 out of 20 transportation stocks settled lower, two listings connected to the trucking industry saw strength. JB Hunt (JBHT 59.32, +0.22) and Ryder System (R 44.22, +0.45) added 0.4% and 1.0%, respectively.
Casino stocks were broadly stronger after Penn National Gaming (PENN 48.23, +10.62) announced plans to split its real estate and gaming assets into two separate companies. Under the new structure, a newly-established PropCo will be the first real investment trust focused solely on gaming. Penn National surged 28.2% while peers Ameristar Casinos (ASCA 19.52, +2.67), Pinnacle Entertainment (PNK 12.65, +0.84), and Las Vegas Sands (LVS 42.27, +1.71) all gained between 4.2% and 15.9%.
In economic news, the September net long-term TIC flows report indicated a $3.3 billion inflow of foreign capital into U.S. denominated assets. This follows the prior month's $90.0 billion inflow.
Industrial production decreased during October by 0.4%, which was worse than the 0.1% increase that had been expected by the Briefing.com consensus. The reading follows the revised 0.2% increase recorded during the prior month. Capacity utilization hit 77.8%, which was worse than the 78.3% expected by the Briefing.com consensus, and down from the revised prior month reading of 78.2%.
On Monday, investors will digest the October existing home sales report and November NAHB Housing Market Index. Both figures will be reported at 10:00 ET.
Week in Review: Markets Continue Retreating Amid Fiscal Cliff Worries
Stocks began Monday's session on a higher note. However, the S&P 500 followed the early strength with a slide into the red. After hovering near its lows for little over an hour, the index staged a steady climb towards fresh highs. The benchmark average followed the early afternoon strength with another slide towards its flat line, where it remained until the end of the day. The day's volume was well below average and the bond market was closed in observance of Veterans Day. Titanium Metals (TIE 16.61, +0.11) surged 42.6% after being acquired by Precision Castparts (PCP 174.05, -0.23) for $16.50 per share.
On Tuesday, equities started the session on a lower note. However, the major averages followed the lower open with a steady climb towards session highs. The optimism held the S&P 500 near the 1385 level for the majority of the session, before late day selling pushed it back into the red. As a result the benchmark average settled lower by 0.4%. Home Depot (HD 62.12, +0.87) rose by 3.6% after reporting upbeat earnings and issuing upside guidance.
Wednesday's session opened higher, but the early strength did not hold past the opening minutes. The S&P 500 marked its session best shortly after the open, and headed lower. The morning slide was accompanied by headlines out of the Middle East which indicated Israeli forces have killed two top Hamas officials in an operation dubbed "Pillar of Defense." After the first-hour slide, the benchmark average held near the 1365 level until President Obama held a press conference to further discuss the fiscal cliff. During his remarks, the commander-in-chief said he is "hoping for compromise and hoping for new ideas." The president's statements failed to inspire investor confidence, thus resulting in an afternoon sell-off which saw the S&P 500 settle lower by 1.4%. Abercrombie & Fitch (ANF 40.87, -0.88) gained 34.5% after reporting strong quarterly results.
On Thursday, stocks showed indecision in the early going as trade hovered around the flat line for the first 90 minutes. The S&P 500 followed the initial choppiness with a slide to a session low near 1350. The level provided some support for the benchmark index which managed to cross into positive territory before sellers retook control and drove it back down to session lows. However, the average received a considerable bid in the final minutes of the trading day and ended with a loss of 0.2%. Apple (AAPL 527.68, +2.06) slid 2.1% to extend its recent weakness.DJ30 +45.93 NASDAQ +16.19 SP500 +6.55 NASDAQ Adv/Vol/Dec 1448/2.12 bln/999 NYSE Adv/Vol/Dec 2281/948.6 mln/800
3:30 pm : Crude oil advanced during today's floor session on heightened Israel and Hamas tensions and a fire on an energy platform in the Gulf of Mexico. Despite a stronger dollar index, the energy component climbed as high as $87.39 per barrel and settled slightly below that level at $86.96 per barrel, booking a gain of 0.5% for the week. N
atural gas trended higher in positive territory after coming off its session low of $3.71 per MMBtu set moments after floor trade opened. It closed at $3.79 per MMBtu, or just below its session high of $3.80 per MMBtu for a weekly gain of 8.3%.
Gold see-sawed between positive and negative territory as the stronger dollar index put pressure on the yellow metal. It slid off its pit session high of $1716.80 per ounce and touched a session low of $1707.50 per ounce in morning action. Gold spent the remainder of pit trade working on erasing losses and managed to close just above the unchanged level at $1714.80 per ounce. Despite the slight gain, gold booked a 0.9% loss for the week.
Silver struggled in the red during its entire floor session. It touched a session high of $32.60 per ounce but quickly fell to a session low of $32.01 per ounce. Efforts to erase losses were unsuccessful, and silver settled the week 0.8% lower at $32.37 per ounce.DJ30 +41.86 NASDAQ +15.40 SP500 +5.75 NASDAQ Adv/Vol/Dec 1372/1771.4 mln/1067 NYSE Adv/Vol/Dec 1397/670 mln/1050
3:00 pm : The S&P 500 continues to trade modestly higher as it adds 0.2%.
There are no notable earnings releases after today's close and only a handful of names will report their results next week. On Monday, Lowe's (LOW 31.82, +0.42) and Tyson Foods (TSN 16.73, -0.03) will report the results of their operations. The Capital IQ consensus estimate expects Lowe's to report earnings of $0.35 on $11.91 billion in revenue. The home improvement store operator will announce its results after peer Home Depot (HD 61.99, +0.74) beat on earnings, revenue, and issued upside guidance. Meanwhile, Tyson Foods (TSN 16.74, -0.02) is expected to announce earnings of $0.44 on revenue of $8.51 billion.
Notable names scheduled to report later in the week include, Best Buy (BBY 14.07, -1.18), Deere (DE 85.10, -0.29), Hewlett-Packard (HPQ 12.75, -0.33), and HJ Heinz (HNZ 57.95, +0.04).DJ30 +9.64 NASDAQ +8.06 SP500 +1.97 NASDAQ Adv/Vol/Dec 1297/1.63 bln/1134 NYSE Adv/Vol/Dec 1997/623.9 mln/1046
2:30 pm : The S&P 500 has retreated off its afternoon highs, and is currently flat.
Homebuilders are enjoying a strong session. The SPDR S&P Homebuilders ETF (XHB 24.71, +0.36) is advancing 1.5% and all major builders are seeing gains. DR Horton (DHI 18.78, +0.31), PulteGroup (PHM 15.62, +0.38), and Lennar (LEN 35.88, +0.98) are all up between 1.6% and 2.8%.
The strength in homebuilder stocks is carrying over to companies which stand to benefit from an improved housing market. Home Depot (HD 61.94, +0.69), Lumber Liquidators (LL 53.31, +2.36), and Whirlpool (WHR 95.53, +1.57) are all up between 1.0% and 4.8%.DJ30 -4.80 NASDAQ +4.04 SP500 +0.37 NASDAQ Adv/Vol/Dec 1172/1.51 bln/1230 NYSE Adv/Vol/Dec 1889/583.9 mln/1155
2:00 pm : Equities are holding their recent levels and the S&P 500 is higher by 0.4%.
Looking at the financial sector, the SPDR Financial Select Sector ETF (XLF 15.23, +0.05) is adding 0.4%. Even though the proxy ETF is trading in-line with the broader market, major financials are mixed. JPMorgan Chase (JPM 39.25, -0.14) is off by 0.4% after reaching settlement with the Securities and Exchange Commission regarding Bear Stearns and JPMorgan residential mortgage-backed securities. As part of the settlement, JPMorgan will pay approximately $297 million in penalties. Credit Suisse (CS 21.90, -0.47) was also named in the settlement and will pay approximately $120 million in fines. Looking at other majors, Citigroup (C 34.87, -0.34) is lower by 1.0% while Wells Fargo (WFC 31.86, +0.29) is outperforming with a 1.0% gain.
Elsewhere, European financials are broadly weaker. Deutsche Bank (DB 41.51, -1.11) is down 2.6% and UBS (UBS 14.80, -0.30) is off by 2.0%.DJ30 +31.45 NASDAQ +13.46 SP500 +4.68 NASDAQ Adv/Vol/Dec 1274/1.42 bln/1130 NYSE Adv/Vol/Dec 2025/554.9 mln/1010
1:30 pm : The S&P 500 has surrendered a portion of its early afternoon gains and it is currently adding 0.3%.
The Dow Jones Transportation Average is lower by 0.5% as it underperforms the industrial average. Out of the five airlines which are part of the transportation average, four are seeing notable losses. Delta Air Lines (DAL 9.36, -0.13) is down 1.4%, and JetBlue Airways (JBLU 4.90, -0.13) is lower by 2.6%. Meanwhile, Southwest Airlines (LUV 8.88, +0.04) is adding 0.5% as it outperforms its peers.
As 16 out of 20 transportation stocks trade lower, two trucking-related listings are seeing strength. JB Hunt (JBHT 59.59, +0.49) and Ryder System (R 44.10, +0.33) are adding 0.8% each.DJ30 +22.40 NASDAQ +12.60 SP500 +4.00 NASDAQ Adv/Vol/Dec 1250/1.33 bln/1127 NYSE Adv/Vol/Dec 2003/524.1 mln/1020
1:05 pm : After opening flat, the S&P 500 slid to a session low in the 1345 area as broad market weakness manifested itself once again. However, the key indices rallied to their respective highs after Congressional leaders addressed the media regarding the progress of fiscal cliff negotiations. During the press conference, Senator Harry Reid said that officials would not wait until the last day of December, and could agree on the framework for a deal prior to the deadline. The S&P 500 is holding the bulk of its gains at midday as it trades higher by 0.3%.
High-yielding telecom stocks continue to see weakness as the country nears the fiscal cliff. Earlier reports indicated the White House is considering a package which would delay the mandatory spending cuts scheduled to go into effect on January 1, 2013. However, this was received as a delay of the decision, rather than a step towards a concrete solution. The telecommunications sector is sliding 0.6% and AT&T (T 33.32, -0.10), Sprint Nextel (S 5.49, -0.04), and Verizon (VZ 41.16, -0.54) are all down between 0.3% and 1.3%.
Among technology stocks, Apple (AAPL 526.42, +0.80) is showing little change after being down more than 2.0% intraday.
A handful of notable technology companies have reported earnings since yesterday's close. Dell (DELL 8.92, -0.64) is seeing the most noteworthy reaction to its results as the stock trades lower by 6.7% after missing on earnings and revenue. During the third quarter, the computer manufacturer saw its revenue decline 10.7% year-over-year, to $13.72 billion. In addition, the company issued downside fourth quarter revenue guidance and reaffirmed its full-year 2013 earnings expectations.
Meanwhile, Applied Materials (AMAT 10.19, -0.11) reported strong results, but issued cautious guidance. The semiconductor manufacturer earned $0.06 on $1.65 billion in revenue, which beat the Capital IQ consensus estimates. However, forward guidance was a point of concern as the company expects first quarter earnings and revenue below consensus.
Lastly, Autodesk (ADSK 31.55, +1.05) is higher by 3.4% after reporting mixed earnings. The software provider's earnings exceeded estimates by $0.04, while its revenue of $548 million fell short of estimates. Similar to Applied Materials, Autodesk is cautious about its upcoming quarter as it expects earnings and revenue to miss consensus estimates.
In today's retail earnings, Gap (GPS 33.69, +0.43) is advancing 1.3% after reporting an in-line quarter. In addition, the apparel retailer raised its full-year earnings guidance, but the forecast remains below the Capital IQ consensus estimate. Following the earnings release, Canaccord Genuity upgraded the stock to ‘hold' from ‘sell' with a $35 price target.
Foot Locker (FL 32.77, +1.92) is higher by 5.9% after beating on earnings and revenue. During the third quarter, the shoe retailer earned $0.63, which was $0.09 ahead of analyst expectations. Meanwhile, its revenue of $1.52 billion also beat expectations. Additionally, the company's comparable-store sales increased 10.2%.
Casino stocks are seeing broad strength after Penn National Gaming (PENN 48.86, +11.25) announced plans to split its real estate and gaming assets into two separate companies. Under the new structure, a newly-established PropCo will be the first real investment trust focused solely on gaming. Penn National is higher by 29.9% while peers Ameristar Casinos (ASCA 19.24, +2.39), Pinnacle Entertainment (PNK 12.99, +1.18), and Las Vegas Sands (LVS 41.92, +1.35) are all up between 3.0% and 14.0%.
In economic news, the September net long-term TIC flows report indicated a $3.3 billion inflow of foreign capital into U.S. denominated assets. This follows the prior month's $90.0 billion inflow.
Industrial production decreased during October by 0.4%, which is worse than the 0.1% increase that had been expected by the Briefing.com consensus. The reading follows the revised 0.2% increase recorded during the prior month. Capacity utilization hit 77.8%, which is worse than the 78.3% expected by the Briefing.com consensus, and down from the revised prior month reading of 78.2%.DJ30 +18.86 NASDAQ +10.48 SP500 +3.70 NASDAQ Adv/Vol/Dec 1232/1.25 bln/1124 NYSE Adv/Vol/Dec 2001/499.4 mln/1012
12:30 pm : The major averages are holding their recent levels as the S&P 500 trades higher by 0.5%.
The technology sector is higher by 0.5% as it trades in-line with the broader market. Apple (AAPL 527.16, +1.54) was seeing earlier losses in excess of 2.0%, but it has crossed into positive territory since.
A handful of notable technology companies have reported earnings since yesterday's close. Dell (DELL 8.84, -0.72) is seeing the most notable reaction to its results as the stock trades lower by 7.6% after missing on earnings and revenue. During the third quarter, the computer manufacturer saw its revenue decline 10.7% year-over-year, to $13.72 billion. In addition, the company issued downside fourth quarter revenue guidance and reaffirmed its full-year 2013 earnings expectations.
Meanwhile, Applied Materials (AMAT 10.20, -0.09) reported strong results, but issued cautious guidance. The semiconductor manufacturer earned $0.06 on $1.65 billion in revenue, which beat the Capital IQ consensus estimates. However, forward guidance was a point of concern as the company expects first quarter earnings and revenue below consensus.
Lastly, Autodesk (ADSK 31.61, +1.11) is higher by 3.6% after reporting mixed earnings. The software provider's earnings exceeded estimates by $0.04, while its revenue of $548 million fell short of estimates. Similar to Applied Materials, Autodesk is cautious about its upcoming quarter as it expects earnings and revenue to miss consensus estimates.DJ30 +57.68 NASDAQ +18.52 SP500 +7.60 NASDAQ Adv/Vol/Dec 1261/1.15 bln/1097 NYSE Adv/Vol/Dec 2037/469.0 mln/961
12:05 pm : Equities surged to fresh highs after Congressional leaders addressed the media. During the press conference, Senator Harry Reid said that officials would not wait until the last day of December, and could agree on a framework of a deal prior to the deadline. The S&P 500 is currently higher by 0.4%.
The surge to session highs was reflected across all sectors. However, the dollar index did not respond with a drop of equal magnitude. Instead, it registered a modest slide from its session high of 81.45 to 81.30, where it currently remains.DJ30 +40.31 NASDAQ +9.34 SP500 +5.88 NASDAQ Adv/Vol/Dec 1225/1.02 bln/1108 NYSE Adv/Vol/Dec 1998/430.7 mln/979
11:35 am : The major averages have marked fresh session lows in a move which saw a sell-off across all sectors. Only telecom stocks, which were a notable early underperformer, have held their levels. The S&P 500 is currently off by 0.7%.
In today's retail earnings, Gap (GPS 33.31, +0.05) is adding 0.2% after reporting an in-line quarter. In addition, the apparel retailer raised its full-year earnings guidance, but the forecast remains below the Capital IQ consensus estimate. Following the earnings release, Canaccord Genuity upgraded the stock to ‘hold' from ‘sell' with a $35 price target.
Foot Locker (FL 32.64, +0.79) is higher by 2.5% after beating on earnings and revenue. During the third quarter, the shoe retailer earned $0.63, which was $0.09 ahead of analyst expectations. Meanwhile, its revenue of $1.52 billion also beat expectations. Additionally, the company's comparable-store sales increased 10.2%.
Lastly, Wet Seal (WTSLA 2.87, -0.05) is sliding 2.7% after reporting an earnings beat and in-line revenue.DJ30 -64.60 NASDAQ -23.35 SP500 -9.27 NASDAQ Adv/Vol/Dec 728/841.2 mln/1580 NYSE Adv/Vol/Dec 1253/370.4 mln/1719
11:00 am : The S&P 500 has recovered about half of its early losses and it currently trades lower by 0.3%.
Despite the broad market weakness, casino stocks are seeing strength. Earlier, Penn National Gaming (PENN 48.64, +11.03) announced plans to split its real estate and gaming assets into two separate companies. Under the new structure, a newly-established PropCo will be the first real investment trust focused solely on gaming. Penn National trades higher by 29.3% while peers Ameristar Casinos (ASCA 19.12, +2.27), Pinnacle Entertainment (PNK 13.24, +1.43), and Las Vegas Sands (LVS 41.90, +1.34) are all up between 3.0% and 13.0%.DJ30 -23.11 NASDAQ -8.20 SP500 -4.32 NASDAQ Adv/Vol/Dec 854/673.5 mln/1413 NYSE Adv/Vol/Dec 1350/324.6 mln/1556
10:35 am : Commodities are displaying some notable volatily this morning. Precious metals just sold off sharply, causing both Dec gold and Dec silver to hit new session lows. Dec gold is now trading at $1710.70, down 0.2%, while Dec silver is at $32.19, down 1.5%.
Dec crude oil rallied earlier this morning pretty sharply, rising as high as $86.63/barrel. In current trade, crude oil is +1.1% at $86.40/barrel. Natural gas futures sold off sharply early ths morning, but after hitting its current session low of $3.66, Dec natural gas recovered sharply off of that LoD. In current action, nat gas is +1% at $3.74/MMBtu.DJ30 -26.15 NASDAQ -7.73 SP500 -3.42 NASDAQ Adv/Vol/Dec 847/549.9 mln/1370 NYSE Adv/Vol/Dec 1365/292 mln/1523
10:05 am : The major averages have slipped to their respective lows and the S&P 500 is off by 0.5%.
High-yielding telecom stocks continue seeing weakness as the country nears the fiscal cliff. Earlier reports indicated the White House is considering a package which would delay the spending cuts scheduled to go into effect on January 1, 2013. However, the market is viewing this as a delay of the decision, rather than a step towards a solution. The telecommunications sector is sliding 1.5% and AT&T (T 33.03, -0.39), Sprint Nextel (S 5.46, -0.07), and Verizon (VZ 40.90, -0.79) are all down between 1.0% and 2.0%.DJ30 -48.30 NASDAQ -15.17 SP500 -5.73 NASDAQ Adv/Vol/Dec 677/371.0 mln/1466 NYSE Adv/Vol/Dec 1123/235.8 mln/1687
09:45 am : The major averages have shown early indecision and the S&P 500 spent the opening fifteen minutes oscillating around its flat line. The benchmark index currently trades lower by 0.2%.
Looking at the sector alignment, telecoms and technology are seeing relative weakness. Meanwhile, consumer discretionary and staple stocks are outperforming in the early going.
Among stocks reacting to earnings, Dell (DELL 8.92, -0.64) is slumping 6.7% after missing on earnings and revenue. During the third quarter, the computer manufacturer saw its revenue decline 10.7% year-over-year, to $13.72 billion. In addition, the company issued downside fourth quarter revenue guidance and reaffirmed its full-year 2013 earnings expectations.
Also of note, Penn National Gaming (PENN 49.60, +11.99) is surging 31.9% after the company announced plans to split its real estate and gaming assets into separate companies.DJ30 -24.16 NASDAQ -7.10 SP500 -2.21 NASDAQ Adv/Vol/Dec 698/257.1 mln/1365 NYSE Adv/Vol/Dec 1286/205.4 mln/1446
09:17 am : [BRIEFING.COM] S&P futures vs fair value: +3.40. Nasdaq futures vs fair value: +5.30. As the final session of the week is set to begin, equity futures are pointing to a higher open. The S&P 500 futures are up 0.2%.
High-beta sectors are poised to register early gains as financial and industrials receive a pre-market bid. Bank of America (BAC 9.17, +0.08), Citigroup (C 35.38, +0.17), and Caterpillar (CAT 81.65, +0.35) are all up between 0.4% and 1.0%.
Just released, industrial production decreased during October by 0.4%, which is worse than the 0.1% increase that had been expected by the Briefing.com consensus. The reading follows the revised 0.2% increase recorded during the prior month.
Capacity utilization hit 77.8%, which is worse than the 78.3% expected by the Briefing.com consensus, and down from the revised prior month reading of 78.2%.
09:02 am : [BRIEFING.COM] S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +8.00. Equity futures continue to trade near their pre-market highs, and the S&P 500 futures are adding 0.3%.
In economic news, the September net long-term TIC flows report indicated a $3.3 billion inflow of foreign capital into U.S. denominated assets. This follows the prior month's $90.0 billion inflow.
08:30 am : S&P futures vs fair value: +5.00. Nasdaq futures vs fair value: +8.00. U.S. equity futures are near their pre-market highs after reports indicated the White House is in talks to replace spending cuts that are set to begin in early 2013. The S&P 500 futures are currently higher by 0.3%.
European indices are seeing modest losses ahead of the weekend. Earlier reports suggested German Chancellor, Angela Merkel, wants the European Central Bank to limit bond buys from highly indebted states. Ms. Merkel believes the Outright Monetary Transactions program should only be used as an emergency measure. Elsewhere, Swiss National Bank Chairman, Thomas Jordan, spoke overnight in Zurich, and suggested, "The reasons that led to the implementation of a minimum exchange rate are still in place" as the EURCHF peg remains at 1.20.
United Kingdom's FTSE is slipping 0.6% and miners are under pressure. Eurasian Natural Resources, Fresnillo, and Rio Tinto are all down between 1.9% and 3.5%. Also of note, Melrose is down 11.5% after the company reported slowing revenue growth.
In France, the CAC is lower by 0.4% and Alcatel-Lucent is the biggest decliner. The telecom company said it continues to look at measures aimed at reducing costs. On the upside, carmaker Renault is higher by 1.8%.
Germany's DAX is off by 0.4% and financials are seeing weakness after Chancellor Merkel's comments. Commerzbank and Deutsche Bank are seeing respective losses of 4.0% and 1.8%. A handful of consumer stocks are seeing a bid and Bayer is adding 0.9%.
The major Asian averages ended mostly lower with Japan's Nikkei (+2.2%) once again seeing outperformance as markets continue to price in the possibility that Shinzo Abe will win the snap election. However, Prime Minister Yoshihiko Noda is not going down without a fight, calling for a fiscal stimulus package to be implemented by the end of the month. Singapore (0.3% year-over-year actual versus 0.9% expected), Hong Kong (0.6% quarter-over-quarter actual versus 0.6% expected), and Malaysia (5.2% year-over-year actual versus 4.8% expected) released their latest GDP figures with mixed results. Other data from the region showed India's bank loans grow 16.2% while its foreign exchange reserves fell to $293.56 billion.
In Japan, the Nikkei closed higher by 2.2% as exporters continued to see strong gains. Nissan Motor and Nikon Corp. were among a handful of names that rallied at least 5.0%. Financials were also strong with Nomura jumping 5.0% to lead the space.
Hong Kong's Hang Seng added 0.2% despite weakness in two blue chip names. Exporter Li & Fung tumbled 4.7% after Citigroup suggested the market would be disappointed with the company's guidance. Elsewhere, internet gaming company Tencent Holdings slipped 0.4% following yesterday's 7.0% plunge that came on the heels of disappointing earnings.
In China, the Shanghai Composite settled lower by 0.8% to close at its worst level in seven weeks. Coal stocks remained weak with Yanzhou Coal Mining slumping 2.9% and China Shenhua sliding 1.8%. Breweries were also weak as concerns over the possibility of price cuts weighed. Wangliangye Yibin shed 3.7% to lead the complex lower.
08:02 am : [BRIEFING.COM] S&P futures vs fair value: -0.30. Nasdaq futures vs fair value: -1.00. U.S. equity futures are modestly lower amid cautious European trade. Elevated volume is expected today as November options are set to expire.
Overnight, the global equity markets were unable to find much to build on. Japan's Nikkei was the lone stand out as Prime Minister Noda made good on his promise to dissolve the house. Japan's Nikkei rallied to a higher close by 2.2% on expectation that LDP leader, Shinzo Abe, would be elected as the new prime minister. Noda apparently will not go out silently as Japan's finance minister indicated he insisted on a new fiscal stimulus package by the end of November. The LDP jabbed back with an Economic Revival Report which suggests inflation goals should rise to 2% (from 1%), and GDP growth of 3% should be targeted. In China, the Shanghai Composite fell 0.8% as the Chinese press warned that the recovery suggested by September data may be temporary. Meanwhile, China's vice finance minister stated the fiscal cliff is a tremendous threat to their economy. Elsewhere, Hong Kong's Hang Seng added 0.2%.
In Europe, reports suggested German Chancellor, Angela Merkel, wants the European Central Bank to limit bond buys from highly indebted states. Ms. Merkel believes the Outright Monetary Transactions program should only be used as an emergency measure. Elsewhere, Swiss National Bank Chairman, Thomas Jordan, spoke overnight in Zurich, and suggested, "The reasons that led to the implementation of a minimum exchange rate are still in place" as the EURCHF peg remains at 1.20. The Middle East remains a point of concern as
between Israel and Hamas continues to escalate. European indices are generally lower as midday nears. Germany's DAX and United Kingdom's FTSE are both down 0.5% while France's CAC is seeing fractional losses.
In U.S. corporate news, Dell (DELL 9.37, -0.19) is down 2.0% after missing on earnings and revenue. During the third quarter, the computer manufacturer saw its revenue decline 10.7% year-over-year, to $13.72 billion. In addition, the company issued downside fourth quarter revenue guidance and reaffirmed its full-year 2013 earnings expectations.
Gap (GPS 35.10, +1.84) is advancing 5.5% after reporting an in-line quarter. In addition, the apparel retailer raised its full-year earnings guidance, but the forecast remains below the Capital IQ consensus estimate. Following the earnings release, Canaccord Genuity upgraded the stock to ‘hold' from ‘sell' with a $35 price target.
Foot Locker (FL 33.75, +1.90) is higher by 6.0% after beating on earnings and revenue. During the third quarter, the shoe retailer earned $0.63, which was $0.09 ahead of analyst expectations. Meanwhile, its revenue of $1.52 billion also beat expectations. Additionally, the company's comparable-store sales increased 10.2%.
In today's economic data, September net long-term TIC flows will be reported at 9:00 ET. Lastly, October industrial production and capacity utilization will both be announced at 9:15 ET.
06:50 am : [BRIEFING.COM] S&P futures vs fair value: -3.00. Nasdaq futures vs fair value: -6.00.
06:49 am : Nikkei...9024.16...+194.40...+2.20%. Hang Seng...21159.01...+50.10...+0.20%.
06:49 am : FTSE...5648.85...-29.00...-0.50%. DAX...7004.81...-39.60...-0.60%.
Special thanks to Bloomberg, CNNMoney, Reuters and Yahoo! Finance for their market summaries. Best Regards,
M.A. Perry
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