TheStrategyLab.com Price Action Trading Support Forum

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


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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $2,690.00 dollars or +26.90 points, Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $2,690.00 dollars

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

In addition, all of my trades were posted real-time in the timestamp ##TheStrategyLab chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=132&t=1834


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

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

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

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

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

-----------------------------

Market Context Summaries

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

Ugly Day For Stocks. Tech Leads Sell-Off


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

NEW YORK (CNNMoney)
It might be a big World Cup day, but in the stock market, it was "World Slump" day.

Here are the key talking points:

1. Bad day for stocks: All three major U.S. indexes retreated with the Nasdaq losing 1.35%. This was the 30th trading day so far this year that the Nasdaq has moved more than 1% up or down.

The Dow Jones Industrial Average lost 118 points (0.7%) and the S&P 500 sunk 0.7%. There was a lot of excitement about the Dow cresting over 17,000 last week, but it finished the day a notch above 16,900.

Meanwhile volatility is creeping back into the market. CNNMoney's Fear and Greed Index, which tracks seven indicators of market sentiment, has moved from "extreme greed" into "greed."

Some of the pessimism could simply have been investors realizing their gains after the recent stock market rally. But there are deeper concerns about company valuations and whether the Federal Reserve will raise interest rates sooner rather than later.

2. Tech takes beating: Tuesday's sell-off was most pronounced in the tech world, where some of the big so-called momentum stocks pulled back. CNNMoney's Tech 30 Index ended down 2.1%, with Twitter (TWTR, Tech30) as its most unfortunate victim. Shares of the microblogging service tanked over 7% Tuesday.

"$TWTR is done. Take the money and run very fast," said MickeTrader on StockTwits.

Linkedin (LNKD, Tech30),Facebook (FB, Tech30), Netflix (NFLX, Tech30), and Amazon (AMZN, Tech30) also lost big.

3. Earnings season is here! Alcoa (AA) unofficially kicked off earnings season Tuesday when it released its second quarter results after the bell. So far, so good. The aluminum producer rose in after hour trading after it beat analyst estimates.

Related: Corporate profits: Can they keep going and going?

With the S&P 500 index already up 6% this year, investors will be looking closely to see whether corporate profits can support stocks and to what extent markets have been relying on cheap money from the Federal Reserve to push indexes to new records.

Second quarter earnings are expected to grow 4.9% compared to the same period last year, though that estimate is down from the 6.8% prediction at the start of the quarter, according to data from FactSet.

4. Other movers: More drama at American Apparel: Shares of American Apparel (APP) plunged after the struggling company warned it received a notice of default from a lender related to last month's ouster of founder and CEO Dov Charney.

However, American Apparel disputed that default claim and is exploring ways to tap its revolving credit facility to repay the lender. The New York Post reported American Apparel has reached a preliminary deal to transfer control of the board to a hedge fund aligned with Charney.

Also on the fashion front, Guess (GES) rallied -- up almost 4% -- after the retailer was upgraded by analysts at Piper Jaffray, who pointed to strength in the company's European business.

Video - #Problem: Smartphone users abandon Samsung

5. No help from overseas: European markets were weaker, with airline and banking stocks under pressure. Air France KLM (AFLYY)cut its earnings forecast due to overcapacity on routes to North America and Asia. In that vein, Delta Air Lines (DAL) dipped again. The stock is down over 9% in the past week after the company released revenue figures that showed weakness on certain overseas routes.

Some bank stocks took a hit from a New York Times report saying Germany's Commerzbank (CRZBF) and Deutsche Bank (DB) are next in line for punishment by U.S. authorities. Sentiment was also soured by weaker than expected German export data for May.

Asian markets ended mixed.

South Korean-based Samsung warned that revenue and profit will fall in the second quarter as the company struggles to find new smartphone buyers in an already saturated market. The electronics maker warned that operating profit could fall to 7 trillion won ($6.9 billion) -- a 26% decline from the previous year.





4:10 pm: [BRIEFING.COM] The major averages registered their second consecutive decline that sent the S&P 500 lower by 0.7% with nine sectors ending in the red. Like yesterday, small-cap stocks underperformed with the Russell 2000 and Nasdaq Composite posting respective losses of 1.2% and 1.4%.

In some ways, today's session resembled yesterday's affair as stocks began the trading day on a cautious note amid weakness in European equities. Yesterday, a disappointing Industrial Production report from Germany contributed to the cautious posture, while today's losses followed the largest monthly decline in UK's Industrial Production (-0.7%) since January 2013.

With participants receiving another warning sign about the strength of economic growth in the eurozone, the stage was set for another day of profit taking.

The technology sector resisted some of the selling pressure yesterday, but the top-weighted S&P 500 sector lost 1.0% today. The influential sector suffered from losses among components of all sizes, including a 0.6% drop in the shares of Apple (AAPL 95.32, -0.62) after the top-weighted tech stock spiked 2.1% on Monday.

Social media names slumped notably with the likes of Facebook (FB 62.76, -2.53), LinkedIn (LNKD 158.67, -10.58), and Twitter (TWTR 37.41, -2.82) posting losses between 3.9% and 7.0%.

Things looked a bit better among chipmakers as the PHLX Semiconductor Index trimmed its loss to 0.5% after being down as much as 1.0% at the halfway point of the session. Similarly, biotechnology also inched up off its midday low, but the iShares Nasdaq Biotechnology ETF (IBB 253.63, -5.46) still lost 2.1%, which weighed on the health care sector (-0.9%).

On the upside, the utilities sector (+0.6%), which struggled last week, spent the entire session in the green to boost its week-to-date gain to 1.0%.

Utilities notwithstanding, consumer staples (-0.2%), energy (-0.2%), and materials (-0.3%) settled ahead of the broader market, but could not climb into the green. In the materials space, Alcoa (AA 14.85, +0.11) bucked the trend, adding 0.6% ahead of its after-hours earnings report.

Today's weakness in equities translated into strength for the bond market, sending the 10-yr note higher by 15 ticks. For its part, the benchmark yield fell five basis points to 2.56%.

Participation was a bit below average with just under 670 million shares changing hands at the NYSE.

Economic data was limited to the Jobs Openings and Labor Turnover Survey and the Consumer Credit report:

The Job Openings and Labor Turnover Survey for May indicated job openings increased to 4.635 million from 4.464 million
Consumer credit increased by $19.60 billion in May after increasing a downwardly revised $26.10 billion (from $21.80 billion) in April. The Briefing.com consensus expected consumer credit to increase by $16.10 billion
Consumer credit typically goes through large monthly revisions, but any future revision is unlikely to alter the current trend of double-digit credit growth

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while the minutes from the June FOMC meeting will cross the wires at 14:00 ET.

S&P 500 +6.2% YTD
Nasdaq Composite +5.1% YTD
Dow Jones Industrial Average +2.0% YTD
Russell 2000 +0.7% YTD

3:30 pm: [BRIEFING.COM]

Precious metals fell into negative territory following the Job Openings and Labor Turnover Survey for May report which showed job openings increased to 4.635 mln from 4.464 mln.
Aug gold retreated from a session high of $1325.70 per ounce and brushed a session low of $1314.30 per ounce. It eventually settled at $1316.60 per ounce, just 50 cents below the break-even level.
Sep silver touched a session high of $21.25 per ounce shortly after floor trade opened but chopped around near the unchanged line following the release of May JOLTS data. Unable to gain momentum, it settled 1 cent higher at $21.02 per ounce.
Aug crude oil advanced to a session high of $104.20 per barrel moments after equity markets opened but quickly retreated into the red. It brushed a session low of $102.98 per barrel and settled with a 0.1% loss at $103.36 per barrel.
Aug natural gas spent its entire floor session in negative territory, dipping as low as $4.13 per MMBtu in morning action. It eventually settled with a 0.7% loss at $4.20 per MMBtu.

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.7% with one hour remaining in the session.

The Consumer Credit report for May was just released by the Federal Reserve and it showed that consumer credit increased by $19.60 billion. That was higher than the Briefing.com consensus estimate of $16.30 billion. The prior month's credit growth was revised lower to $26.12 billion from $26.80 billion.

2:30 pm: [BRIEFING.COM] Stocks remain near their recent levels with the S&P 500 trading roughly six points above its session low, which leaves the benchmark index 12 points below its flat line.

The recent rebound off lows saw the utilities sector (+0.6%) return to its early high. The rate-sensitive sector outperforms for the second consecutive day after slumping last week. Despite today's gain, which has extended the sector's week-to-date advance to 1.0%, the sector remains down 3.0% so far in July. However, last week's losses did not cause the group to surrender its spot atop this year's leaderboard.

The countercyclical sector sports a year-to-date gain of 12.9%. The Consumer Credit report for May will be released at 15:00 ET.

2:00 pm: [BRIEFING.COM] The S&P 500 has narrowed its loss to 0.5% with the industrial sector partially responsible for the rebound. Specifically, the industrial sector (-0.5%) has benefitted from a bounce back among transportation stocks.

The Dow Jones Transportation Average is back at its flat line with five components holding gains. Most notably, airlines Alaska Air (ALK 96.95, +2.30) and United Continental (UAL 39.58, +0.96) outperform with respective gains of 2.4% and 2.5%.

Elsewhere, the energy sector (+0.03%) has returned into positive territory even as crude oil has slipped to a new low. The energy component is lower by 0.3% at $103.18/bbl.

1:30 pm: [BRIEFING.COM] The major indices are off their lows for the session but remain entrenched in negative territory.

The small-cap, biotech, and social media names are among the biggest laggards. That distinction has drawn a lot of attention for two reasons: (1) there hasn't been any specific news to account for the large losses and (2) that same grouping came under some considerable selling pressure this spring that culminated in drops of 20% or more for a lot of individual issues and a 10%+ correction for the Russell 2000. Accordingly, there are some burgeoning concerns that these same areas are at increased risk for a deeper setback now after having rebounded strongly from their spring lows.

The second quarter earnings reporting season, which moves into the spotlight with Alcoa's (AA 14.80, +0.05) report after the close today, should provide some directional answers on that last thought.

Separately, the $27 bln 3-yr note auction went off reasonably well just as headlines hit the wires that Richmond Fed President Lacker thinks the Fed will have to raise rates before the longer-run 2% inflation target is reached (Mr. Lacker is not a voting FOMC member in 2014). The auction drew a high yield of 0.992% with a 3.38 bid-to-cover ratio that slightly exceeded the prior 12-auction average of 3.33x. The 10-yr note is up 14 ticks with its yield at 2.56%.

1:00 pm: [BRIEFING.COM] At midday, the major averages hover near their lows with small-cap stocks showing relative weakness for the second consecutive day. The Russell 2000 (-1.2%) and Nasdaq (-1.4%) trail the S&P 500, which trades lower by 0.7% with eight sectors in the red.

Just like yesterday, equity indices slumped at the open and continued inching lower through the first half of the session. The retreat has been fueled by some of the most influential sectors as consumer discretionary (-1.0%), health care (-1.0%), financials (-0.9%), industrials (-0.7%), and technology (-1.1%) all hold losses close to 1.0% apiece.

The top-weighted S&P 500 sector-technology-displayed relative strength yesterday, but today's broad weakness has knocked the sector to the bottom of the leaderboard. Apple (AAPL 94.67, -1.30) surged 2.1% yesterday, but the largest sector (and Nasdaq) component is down 1.3% today.

Similar to large-cap stocks, high-beta chipmakers and social media names are on the defensive. The PHLX Semiconductor Index holds a loss of 1.0%, while the likes of Facebook (FB 62.79, -2.51), LinkedIn (LNKD 157.69, -11.56), and Yelp (YELP 69.55, -6.21) are down between 3.8% and 8.2%.

Staying on the high-beta theme, biotech stocks trade broadly lower with the iShares Nasdaq Biotechnology ETF (IBB 252.50, -6.59) down 2.5%. The loss has contributed to the underperformance of the Nasdaq and the biotech ETF has now surrendered 5.1% since Friday.

On the upside, the utilities sector (+0.5%) is the lone advancer, extending its week-to-date gain to 0.9%.

The steady retreat in equities has boosted the bond market. The 10-yr note is higher by 14 ticks with its yield down five basis points at 2.56%.

Economic data was limited to the Job Openings and Labor Turnover Survey for May, which indicated job openings increased to 4.635 million from 4.464 million.

The Consumer Credit report for May will be released at 15:00 ET.

12:30 pm: [BRIEFING.COM] Sellers remain in control with the S&P 500 trading lower by 0.8%. At this time, the five top-weighted sectors all trade with losses of 1.0% or more. Technology (-1.4%) remains at the bottom of the leaderboard, while consumer discretionary (-1.2%), financials (-1.0%), health care (-1.2%), and industrials (-1.0%) show slimmer losses.

The five sectors have the potential to influence afternoon action in a significant way considering the bunch accounts for nearly 72.0% of the overall market.

Conversely, the market's inability to come off its session low has boosted Treasuries to fresh highs. The 10-yr note is currently higher by 15 ticks with its yield down five basis points at 2.56%.

12:00 pm: [BRIEFING.COM] Not much change in the major averages as they continue trading near their lowest levels of the session. The top-weighted S&P 500 sector-technology-has widened its loss to 1.5%, which has placed the group behind the second-weakest performer of the day-telecom services (-1.3%).

Chipmakers have contributed to the weakness of the sector as all 30 components of the PHLX Semiconductor Index (-1.4%) trade in the red. Despite today's loss, the PHLX Semiconductor Index is still up 6.2% since the start of June.

With stocks on the defensive for the second consecutive day, participants are demanding some downside protection. The CBOE Volatility Index (VIX 12.41, +1.08) has approached the top of its June range.

11:30 am: [BRIEFING.COM] The major averages remain pinned to their lows with the Russell 2000 (-1.7%) and Nasdaq (-1.6%) trailing the other indices.

For the most part, cyclical sectors continue trading near their lowest levels of the day with consumer discretionary (-1.1%) and technology (-1.2%) both down in excess of 1.0%. Meanwhile, the two commodity-related sectors-energy and materials-hover a bit closer to their flat lines.

The energy sector is lower by 0.2% as crude oil trades little changed at $103.51/bbl after marking a session high just north of the $104.00 level. For its part, the materials sector holds a loss of 0.3% with most components in the red. Similar to oil, gold futures are flat on the session ($1316.00/ozt).

10:55 am: [BRIEFING.COM] The S&P 500 trades lower by 0.7%, while the continued underperformance of small caps has weighed on the Russell 2000 and Nasdaq Composite. The two indices are both down 1.3%.

Yesterday, the technology sector displayed relative strength thanks to the outperformance of some of its largest components. Today, however, the top-weighted S&P 500 sector is the weakest cyclical group. The tech sector holds a loss of 1.0% with its largest component, Apple (AAPL 95.08, -0.89) down 0.9%.

Furthermore, biotechnology has also pressured the tech-heavy Nasdaq and the health care sector. The iShares Nasdaq Biotechnology ETF (IBB 254.99, -4.10) is lower by 1.6% and now down 4.2% for the week.

10:35 am: [BRIEFING.COM]

Some major commodities sold off this morning on only a small move upwards in the dollar index, which remains in negative territory
Aug crude oil prices just hit a new LoD of $103.21/barrel, largely on broad commodity weakness (Libya/Iraq concerns have been easing as well, which helps weigh on oil prices)
Metals just sold off a little while ago with gold, silver and copper all falling into the red. Gold dropped about $7/oz
Natural gas also sold off to a new LoD
In current trade:
Aug crude -0.1% at $103.42/barrel
Aug nat gas -1.4% at $4.16/MMBtu
Aug gold +0.01% at $1317.10/oz
Sept silver -0.1% at $21/oz
Sept copper -0.1% at $3.26/lb
Dollar index -0.1% at 80.17

10:05 am: [BRIEFING.COM] The S&P 500 (-0.5%) continues drifting near its early low, while the Russell 2000 has widened its loss to 1.1%. Nine of ten sectors continue trading in the red with utilities (+0.6%) representing the lone advancer.

Just released, the Job Openings and Labor Turnover Survey for May indicated job openings increased to 4.635 million from 4.464 million.

9:45 am: [BRIEFING.COM] As expected, the stock market began the session on a lower note with small caps pacing the early retreat once again. The Russell 2000 holds an early loss of 0.8%, while the S&P 500 trades lower by 0.4% with nine sectors in the red.

Cyclical groups were responsible for the bulk of yesterday's losses and the same has held true so far today. The six cyclical sectors are down between 0.2% (technology) and 0.6% (industrials), while defensively-oriented sectors are a bit more mixed. Consumer staples (-0.1%) and utilities (+0.6%) outperform, while health care (-0.7%) and telecom services (-1.4%) lag.

Treasuries have built on their gains, sending the 10-yr yield lower by four basis points to 2.57%.

Also of note, our prior update mentioned the presence of yen strength against the dollar. The Japanese currency has continued its advance, pressuring the dollar/yen pair below 101.55.

The Job Openings and Labor Turnover Survey will be released at 10:00 ET, while the May Consumer Credit report will cross the wires at 15:00 ET (Briefing.com consensus $16.20 billion).

9:14 am: [BRIEFING.COM] S&P futures vs fair value: -4.80. Nasdaq futures vs fair value: -5.80. The stock market is on track for a cautious start as index futures hover near their worst levels of the morning. The S&P 500 futures recently notched fresh lows and now trade five points below fair value. The weakness in futures has coincided with losses among major European indices as participants take additional profits following another disappointing data point.

Specifically, Great Britain saw its largest month-over-month drop in Industrial production (-0.7%) since January 2013. It is worth mentioning this report followed yesterday's disappointing Industrial Production reading from Germany (-1.8% versus expected 0.2%).

Treasuries have been climbing steadily with a push to highs coming as equity futures slipped to lows. The 10-yr note is higher by nine ticks with its yield down three basis points at 2.58%.

The foreign exchange market has also shown some jitters with the Japanese yen climbing to a session high against the dollar, which has sent the dollar/yen pair below the 101.65 area after notching an overnight high near 101.90.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: -3.70. Nasdaq futures vs fair value: -3.80. The S&P 500 futures trade four points below fair value.

Asian markets ended the day on a mixed note.

Economic news was limited to a handful of data points:
Japan's Current Account surplus expanded to JPY380 billion from JPY130 billion (expected surplus of JPY170 billion), while Bank Lending rose 2.3% year-over-year (expected 2.2%, previous 2.3%). Separately, Economy Watchers Current Index rose to 47.7 from 45.1 (expected 49.2)
Australia's NAB Business Confidence ticked up to 8 from 7, while NAB Business Survey improved to 2 from -1

------

Japan's Nikkei lost 0.4%, falling for a third straight session. The stronger yen weighed as Hitachi shed 0.4% and Toyota Motor fell 0.6%.
Hong Kong's Hang Seng ended flat, holding near its best levels of the year. Casino names remained under pressure as Galaxy Entertainment and Wynn Macau lost 2.7% and 1.4%, respectively.
China's Shanghai Composite added 0.2%, closing at a three-week high. Datang International Power Generation surged the daily limit, 10%, amid word it would restructure its coal-chemical business.

Major European indices trade lower across the board with Italy's MIB (-1.7%) pacing the slide. European Central Bank member Christian Noyer said the challenges of the eurozone are no longer systemic, but economic. Mr. Noyer also commented on ECB policy, saying financial conditions are normalizing due to ECB actions, but low inflation continues posing a problem.

Participants received several data points:
Germany's trade surplus expanded to EUR18.80 billion from EUR17.20 billion (expected surplus of EUR16.40 billion)
French trade deficit widened to EUR4.90 billion from EUR4.10 billion (expected deficit of EUR4.50 billion), while the government budget deficit widened to EUR64.30 billion from EUR64.20 billion (expected deficit of EUR70.00 billion)
Great Britain's Industrial Production fell 0.7% month-over-month (expected 0.2%, previous 0.3%), while the year-over-year reading rose 2.3% (consensus 3.1%, prior 2.9%). The decline represented the largest monthly drop since January 2013. Separately, Manufacturing Production fell 1.3% month-over-month (expected 0.4%, previous 0.3%), while the year-over-year reading jumped 3.7% (consensus 5.6%, last 4.3%)
Swiss Retail Sales fell 0.6% year-over-year (expected 1.8%, previous 0.8%), while CPI slipped 0.1% month-over-month (forecast 0.1%, prior 0.3%)

------

In France, the CAC is lower by 0.5% with all but two components trading in the red. Veolia Environnement and Technip are the two weakest index members with both down near 2.3%. Airbus and Total outperform with respective gains of 0.8% and 0.2%
Germany's DAX trades down 0.6%. Commerzbank leads the retreat with a 3.9% loss in reaction to reports the bank may be hit with fines as part of its deferred-prosecution agreement with U.S. authorities. Peer Deutsche Bank is lower by 1.1%, while insurer Allianz outperforms with a gain of 0.9%
Great Britain's FTSE holds a loss of 0.7%. International Consolidated Airlines is the worst performer, down 5.2%. Miners outperform with Fresnillo, Randgold Resources, and Rio Tinto up between 0.5% and 0.8%
In Italy, the MIB trades down 1.7% amid weakness in bank shares. Banca di Milano Scarl, BMPS, and UBI Banca are down between 4.0% and 4.2%

8:25 am: [BRIEFING.COM] S&P futures vs fair value: -2.80. Nasdaq futures vs fair value: -1.80. U.S. equity futures continue hovering in the red with futures on the S&P 500 down three points below fair value. Like yesterday, futures have spent the entire overnight session in negative territory and notched their lows after European markets opened for the day.

In Europe, the major averages trade with losses of at least 0.5% apiece and Great Britain's FTSE (-0.6%) has been pressured by the weakest Industrial Production reading since January 2013 (-0.7% month-over-month).

The weakness in European equities and U.S. futures has underpinned the Treasury market. The 10-yr note is higher by five ticks with its yield down two basis points at 2.59%.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: -2.60. Nasdaq futures vs fair value: -1.30. U.S. equity futures hold modest losses amid defensive action overseas. The S&P 500 futures hover less than three points below fair value.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei -0.4%, China's Shanghai Composite +0.2%, and Hong Kong's Hang Seng settled flat
In economic data:
Japan's Current Account surplus expanded to JPY380 billion from JPY130 billion (expected surplus of JPY170 billion), while Bank Lending rose 2.3% year-over-year (expected 2.2%, previous 2.3%). Separately, Economy Watchers Current Index rose to 47.7 from 45.1 (expected 49.2)
Australia's NAB Business Confidence ticked up to 8 from 7, while NAB Business Survey improved to 2 from -1
New Zealand's NZIER Business Confidence fell to 32 from 52
In news:
In South Korea, Samsung reported its quarterly results that featured a 24.0% year-over-year decline in operating profits, which was largely expected. However, the company's outlook for the second half was a bit more positive. Shares of Samsung added 0.2% after seeing an opening spike.

Major European indices trade lower across the board. Germany's DAX -0.5%, France's CAC -0.5%, and Great Britain's FTSE -0.6%. Elsewhere, Spain's IBEX -0.8% and Italy's MIB -1.2%
Participants received several data points:
Germany's trade surplus expanded to EUR18.80 billion from EUR17.20 billion (expected surplus of EUR16.40 billion)
French trade deficit widened to EUR4.90 billion from EUR4.10 billion (expected deficit of EUR4.50 billion), while the government budget deficit widened to EUR64.30 billion from EUR64.20 billion (expected deficit of EUR70.00 billion)
Great Britain's Industrial Production fell 0.7% month-over-month (expected 0.2%, previous 0.3%), while the year-over-year reading rose 2.3% (consensus 3.1%, prior 2.9%). Separately, Manufacturing Production fell 1.3% month-over-month (expected 0.4%, previous 0.3%), while the year-over-year reading jumped 3.7% (consensus 5.6%, last 4.3%)
Swiss Retail Sales fell 0.6% year-over-year (expected 1.8%, previous 0.8%), while CPI slipped 0.1% month-over-month (forecast 0.1%, prior 0.3%)
Among news of note:
The drop in Great Britain's industrial production represented the largest monthly decline since January 2013.
European Central Bank member Christian Noyer said the challenges of the eurozone are no longer systemic, but economic. Mr. Noyer also commented on ECB policy, saying financial conditions are normalizing due to ECB actions, but low inflation continues posing a problem.

In U.S. corporate news:

Shire (SHPG 242.36, +4.89): +1.9% amid reports AbbVie (ABBV 57.40, 0.00) may increase its offer for the company
Williams Companies (WMB 58.30, +0.60): +1.0% after being added to the US Focus List at Credit Suisse

The Job Openings and Labor Turnover Survey will be released at 10:00 ET, while the May Consumer Credit report will cross the wires at 15:00 ET (Briefing.com consensus $16.20 billion).

6:34 am: [BRIEFING.COM] S&P futures vs fair value: -3.00. Nasdaq futures vs fair value: -1.50.

6:34 am: [BRIEFING.COM] Nikkei...15314.41...-65.00...-0.40%. Hang Seng...23541.38...+0.50...0.00.

6:34 am: [BRIEFING.COM] FTSE...6787.61...-36.10...-0.50%. DAX...9849.22...-57.00...-0.60%.

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

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

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com
Go Back To TheStrategyLab.com Homepage