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 @ $560.00 dollars or +5.60 points, Emini ES ($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 @ $560.00 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=133&t=1870


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=244&t=2455

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Market Context Summaries

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


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

Yahoo! Finance

4:10 pm: [BRIEFING.COM] The stock market began the last week of August on an upbeat note with the S&P 500 making its first appearance above the 2,000 level. The benchmark index added 0.5% with all ten sectors ending in the green, while the Russell 2000 (+0.5%) finished in-line despite showing relative strength at the start.

Equity indices rallied out of the gate, but the opening push ran out of steam after the S&P 500 notched a session high at 2,001.95. The benchmark index took a couple steps back after reaching that level and held its ground throughout the afternoon.

M&A activity in the health care sector (+0.7%) contributed to the opening rally after Swiss drug maker Roche (RHHBY 36.57, +0.25) agreed to acquire InterMune (ITMN 72.85, +19.05) for $74.00 per share, representing a 38.0% premium to Friday's closing price. Shares of ITMN surged 35.4%, which helped lift the iShares Nasdaq Biotechnology ETF (IBB 272.63, +6.20) to its best level since late February. The biotech ETF extended its August gain to 8.7%, settling within three points of its all-time high (275.40) that was notched on February 25.

The relative strength of biotechnology underpinned the Nasdaq Composite (+0.4%), but the index could not keep pace with the S&P 500 amid relative weakness in the technology sector (unch). Large cap components were mixed with Apple (AAPL 101.54, +0.22) and IBM (IBM 191.16, +0.75) posting modest gains, while Google (GOOGL 590.57, -1.97) and Intel (INTC 34.81, -0.13) struggled. Furthermore, high-beta chipmakers weighed as evidenced by a 0.4% decline in the PHLX Semiconductor Index.

Similar to the tech sector, three other cyclical groups could not keep up with the broader market, while energy (+0.8%) and financials (+0.8%) outperformed.

The financial sector finished in the lead with Goldman Sachs (GS 177.87, +2.40) climbing 1.4% after reaching a settlement with the Federal Housing Finance Agency over claims with respect to mortgage-backed securities.

Also of note, the consumer discretionary space (+0.3%) underperformed with homebuilders showing relative weakness following today's disappointing New Home Sales report. The iShares Dow Jones US Home Construction ETF (ITB 23.97, -0.12) lost 0.5%. However, quick-service restaurants rallied after Burger King (BKW 32.40, +5.29) confirmed it has entered into merger discussions with Tim Hortons (THI 74.72, +11.88).

Treasuries finished the day with modest gains after spending the day in positive territory. The 10-yr yield slipped two basis points to 2.39%.

Despite the advance, there wasn't much conviction in the rally as only 482 million shares changed hands at the NYSE floor. This represented the lowest total of the year.

Economic data was limited to the New Home Sales report for July, which declined 2.4% to 412,000 from an upwardly revised 422,000 (from 406,000), while the Briefing.com consensus expected an increase to 427,000. While sales were a disappointment, demand in July remained in-line with recent trends even after taking into account the June revision. Since January, the 12-month moving average has averaged 426,000 and the drop in July sales brought the moving average to exactly 426,000.

Tomorrow, Durable Orders for July (Briefing.com consensus 7.0%) will be released at 8:30 ET, while June Case-Shiller 20-city Index (consensus 8.3%) and the FHFA Housing Price Index for June will both be reported at 9:00 ET. The day's data will be topped off with the Consumer Confidence report for August, which will be released at 10:00 ET (expected 88.3).

Nasdaq Composite +9.1% YTD
S&P 500 +8.1% YTD
Dow Jones Industrial Average +3.0% YTD
Russell 2000 +0.2% YTD

3:30 pm: [BRIEFING.COM]

Dec gold traded in negative territory today while the dollar index advanced. The yellow metal touched a session low of $1276.40 per ounce in late morning action and settled with a 0.1% loss at $1278.50 per ounce.
Sep silver slipped into the red after retreating from a session high of $19.47 per ounce set in early morning pit trade. It brushed a session low of $19.30 per ounce and settled with a 0.2% loss at $19.35 per ounce.
Oct crude oil extended Friday's losses as the stronger dollar index pressured prices. The energy component touched a session high of $93.73 per barrel moments after floor trade opened but pulled back to a session low of $92.98 per barrel. It eventually settled 0.3% lower at $93.35 per barrel.
Sep natural gas, on the other hand, saw firm gains as it traded in a narrow range between $3.90 per MMBtu and $3.94 per MMBtu. It held on to the momentum and settled at session highs, booking a gain of 2.6%.

3:00 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.5% with one hour remaining in the session.

Investors did not receive any noteworthy earnings today, but a handful of notable retailers have yet to release their results for the second quarter. Tomorrow morning, participants will hear from Best Buy (BBY 31.71, +0.51), DSW (DSW 28.10, -0.30), and Movado Group (MOV 44.30, +0.29), while American Apparel (APP 1.06, +0.01) will report its results after the closing bell.

The remainder of the week will feature results from other retailers like Express (EXPR 14.57, +0.18), Tiffany (TIF 100.22, -0.32), and Williams-Sonoma (WSM 74.42, +0.12).

2:30 pm: [BRIEFING.COM] The major averages remain near their recent levels with the S&P 500 having spent the past two hours within a three-point range.

Today's economic data was limited to the disappointing New Home Sales report for July (412K; Briefing.com consensus 427K), which has pressured homebuilders as evidenced by a 0.5% decline in the iShares Dow Jones US Home Construction ETF (ITB 23.96, -0.12).

Tomorrow's session will be a little busier with July Durable Orders (Briefing.com consensus 7.0%) and the August Consumer Confidence report (consensus 88.3) on the schedule. In addition, participants will receive a couple housing-related reports with both June Case-Shiller 20-city Index (consensus 8.3%) and the June FHFA Housing Price Index set to be released at 9:00 ET.

2:00 pm: [BRIEFING.COM] Equity indices continue holding their ground with the S&P 500 trading essentially at its opening level.

All ten sectors sport gains and the weakest performer of the session-technology-is higher by 0.1% after a brief dip into negative territory during the past two hours. Today's weakness has narrowed the tech sector's August gain to 3.5% which puts the group right in line with the S&P 500 for the month.

Similar to the tech sector, four cyclical groups hold monthly gains in-line with the S&P 500, while energy and materials have struggled to keep up. The energy sector has added 0.7% so far this month, while the materials sector sports a month-to-date gain of 3.2%.

1:25 pm: [BRIEFING.COM] The major indices are off their best levels with some selling pressure seen following the long-awaited run to 2,000 for the S&P 500. That mark was reached within the first hour of trading and then, about 11:00 a.m. ET, the market suffered a Y2K bug and saw its rally effort malfunction.

There wasn't any specific cause for the Y2K dip other than perhaps the recognition that the milestone had been reached and that the S&P 500 was arguably overbought on a short-term basis. To that end, the S&P 500, at today's high, was up 4.8% since August 7.

The fade has been paced by the information technology sector, which had climbed as much as 5.3% over the same period.

Intel (INTC 34.79, -0.15) and the semiconductors are a relatively weak link in the tech sector after a recent period of strong inflows that have helped push the Philadelphia Semiconductor Index up 5.0% this month.

1:00 pm: [BRIEFING.COM] The major averages hold modest gains at midday with the S&P 500 up 0.4% after making its first ever appearance above the 2000 level. Small caps outperformed in the early going, but the Russell 2000 (+0.3%) now trails the benchmark index.

Equity indices rallied out of the gate with M&A activity receiving the early attention. The health care sector (+0.7%) spiked at the start after Switzerland-based Roche (RHHBY 36.67, +0.35) agreed to acquire Intermune (ITMN 72.88, +19.09) for $74.00 per share, which represents a 38.0% premium to Friday's closing price. Intermune has surged 35.5%, while also underpinning the iShares Nasdaq Biotechnology ETF (IBB 271.53, +5.10). Including today's 1.9% gain, the biotech ETF is within four points of its all-time high (275.40) that was notched on February 25.

Similar to health care, other countercyclical groups also trade ahead of the broader market with consumer staples, telecom services, and utilities up between 0.4% and 0.6%.

Meanwhile, the cyclical side is a bit more mixed. Energy (+0.6%) and financials (+0.8%) display relative strength, while the remaining four groups lag. Notably, the financial sector has received support from Goldman Sachs (GS 178.43, +2.96), which sports an advance of 1.7% after reaching a settlement with the Federal Housing Finance Agency over claims with respect to mortgage-backed securities.

On the flip side, the technology sector (unch) has recently dipped into the red due to weakness among chipmakers. The PHLX Semiconductor Index is lower by 0.3% after spending the first half of action in a steady retreat from its opening high.

Given the recent weakness in the tech space, the influential sector deserves to be in focus during afternoon action as additional losses could translate into weakness for the broader market. It is worth mentioning that the technology sector represents nearly 19.0% of the entire S&P 500.

The recent slip from highs has caused some participants to increase their hedges as evidenced by a slight uptick in the CBOE Volatility Index (VIX 11.54, +0.07).

Treasuries, meanwhile, hold slim gains, but are off their earlier highs. The 10-yr yield is lower by one basis point at 2.40%.

Economic data was limited to the New Home Sales report for July, which declined 2.4% to 412,000 from an upwardly revised 422,000 (from 406,000), while the Briefing.com consensus expected an increase to 427,000. While sales were a disappointment, demand in July remained in-line with recent trends even after taking into account the June revision. Since January, the 12-month moving average has averaged 426,000 and the drop in July sales brought the moving average to exactly 426,000.

12:30 pm: [BRIEFING.COM] The S&P 500 continues holding a solid bid that has sent the index above the 2000 mark. Interestingly, while the S&P 500 has held near its high, the Russell 2000 (+0.3%) has slipped to a new low. This represents a bit of a shift as the small-cap index traded ahead of the broader market as recently as 30 minutes ago.

The Russell 2000's retreat could be a function of profit-taking after the index was unable to take out its session high that was established during the first 90 minutes of action.

As for the S&P 500, the index remains supported by the relative strength of financials (+0.9%) and the health care sector (+0.7%).

11:55 am: [BRIEFING.COM] The S&P 500 (+0.7%) continues hovering just below its best level of the day, while the Dow Jones Industrial Average and Nasdaq Composite sport comparable gains. Small caps, meanwhile, display relative strength with the Russell 2000 trading higher by 0.8%.

Thanks to today's advance, the Russell 2000 has been able to pull away from its 50-day moving average (1158.89) after spending last week near that level. However, unlike the S&P 500, the Russell 2000 is still trading below its record high (1213.55) that was established on July 1.

Elsewhere, Treasuries hold slim gains after sliding from their early highs. The 10-yr yield is lower by 0ne basis point at 2.40%.

11:30 am: [BRIEFING.COM] Not much change in the major averages as they remain near their best levels of the session. Three of four countercyclical sectors are in a position of relative strength with consumer staples (+0.7%), health care (+0.8%), and utilities (+0.8%) trading ahead of the broader market.

The health care sector has been boosted by M&A news after Switzerland-based Roche (RHHBY 36.58, +0.26) agreed to acquire Intermune (ITMN 72.97, +19.17) for $74.00 per share. At this juncture, shares of Intermune trade up 35.6%, while the iShares Nasdaq Biotechnology ETF (IBB 272.60, +6.17) sports an advance of 2.3%. Thanks to today's rally, the biotech ETF is now within four points of its all-time high that was registered in late February.

Meanwhile, of the six cyclical groups, the financial sector (+1.1%) is the lone outperformer.

11:00 am: [BRIEFING.COM] The major averages have built on their early gains with the S&P 500 (+0.7%) making its first appearance north of the 2000 level. Meanwhile, the Nasdaq Composite (+0.7%) has climbed to its best level since March 2000.

All ten sectors have extended their opening gains with financials (+1.1%) and health care (+1.0%) maintaining the lead. Outside of the two influential groups, the telecom services space (+0.7%) is the only other outperformer.

Also of note, other heavily-weighted sectors like consumer discretionary (+0.4%), industrials (+0.4%), and technology (+0.4%) trade a bit behind the broader market.

Treasuries remain little changed after surrendering their early gains. The 10-yr yield is at 2.40%.

10:35 am: [BRIEFING.COM]

The dollar index is trading higher this morning, which is helping weighing on select commodities today
WTI Sept crude oil sold off this morning and fell as low as $93.06/barrel. In current trade, Sept is -0.6% at $93.13/barrel
Natural gas, on the other hand, has been climbing all day so far and is now +2.5% at $3.94/MMBtu
Precious metals are just modestly lower in current action with Dec gold -0.1% at $1278.40/oz and Sept silver -0.035 at $19.38/oz
Sept copper is +0.4% at $3.22/lb

10:00 am: [BRIEFING.COM] The S&P 500 trades higher by 0.6%.

New home sales in July hit an annualized rate of 412,000, which was down from the revised June rate of 422,000 (from 406,000), and worse than the rate of 427,000 that had been broadly expected by the Briefing.com consensus.

9:40 am: [BRIEFING.COM] As expected, the major averages jumped out of the gate. The S&P 500 trades higher by 0.4% with all ten sectors holding early gains.

The financial sector (+0.7%) is an early leader with Goldman Sachs (GS 177.29, +1.82) providing support after the company reached a settlement with the Federal Housing Finance Agency over claims in respect to mortgage-backed securities.

Elsewhere, the health care sector (+0.6%) has also provided a measure of support with the strength concentrated in the biotech space. The iShares Nasdaq Biotechnology ETF (IBB 271.01, +4.58) is higher by 1.8% after Intermune (ITMN 73.12, +19.32) agreed to be acquired by Roche (RHHBY 36.52, +0.20) for $74.00/share.

The New Home Sales report for July will be released at 10:00 ET (Briefing.com consensus 427,000).

9:16 am: [BRIEFING.COM] S&P futures vs fair value: +10.70. Nasdaq futures vs fair value: +21.50. The stock market is on track for a strong open with futures on the S&P 500 trading almost eleven points above fair value. After spiking at the Sunday evening open, which was delayed due to technical issues at the CME, index futures have maintained a narrow range near their highs. Overseas action has not done anything to upset the sentiment as indices in Europe trade with gains in excess of 1.0%. For its part, the London Stock Exchange-and by extension the FTSE-is closed for a Summer Bank Holiday.

Domestically, investors have been responding to company-specific developments. On the M&A front, Intermune (ITMN 73.29, +19.49) has agreed to be acquired by Roche (RHHBY 36.32, 0.00) for $74.00/share, representing a 38.0% premium to Friday's closing price. Separately, Burger King Worldwide (BKW 30.55, +3.44) has confirmed entering into merger talks with Tim Hortons (THI 73.29, +10.45).

Participants received just a couple quarterly reports today with Qihoo 360 Technology (QIHU 96.64, -5.11) indicated to open lower by 5.0% despite beating estimates and guiding higher.

Treasuries are little changed with the 10-yr yield at 2.40%.

8:56 am: [BRIEFING.COM] S&P futures vs fair value: +10.20. Nasdaq futures vs fair value: +21.00. The S&P 500 futures trade ten points above fair value.

Asian markets started the week on a generally higher note. Bank of Japan Governor Haruhiko Kuroda spoke at the Jackson Hole Symposium on Friday evening, reiterating that Japan's inflation is still just halfway to meeting its target and that he will not hesitate to act if needed.

In economic data:
Hong Kong's trade deficit narrowed to HKD42.10 billion from HKD43.10 billion (expected deficit of HKD40.40 billion) as exports rose 6.8% (consensus 5.3%; prior 11.4), while imports increased 7.5% (expected 5.7%; previous 7.6%)
Singapore's CPI eased to 1.2% from 1.8% (expected 2.1%)

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Japan's Nikkei gained 0.5%, closing near seven-month highs. Exporters gained as a result of the weaker yen with Toyota Motor adding 0.7% and Sony rising 0.9%.
Hong Kong's Hang Seng added 0.2% to finish at its best level in more than six years. Energy giant Sinopec surged 4.3% after reporting better than expected results.
China's Shanghai Composite lost 0.5%, slipping off eight-month highs. Financials were hit on lending worries as China Citic Bank fell 1.2%.

Major European indices trade higher across the board with Italy's MIB (+1.4%) in the lead. However, trading volume has been relatively light with markets in the UK closed for a Summer Bank Holiday. On a separate note, French President Francois Hollande has dissolved his government following a public feud with cabinet ministers regarding the country's economic malaise.

Economic data was limited:
Germany's Ifo Business Climate Index fell to 106.3 from 108.0 (expected 107.0) as Business Expectations slipped to 101.7 from 103.4 (expected 102.0) and Current Assessment decreased to 111.1 from 112.9 (consensus 112.0)
Spain's PPI slipped 0.4% year-over-year (expected 0.1%; prior 0.4%)

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Germany's DAX is higher by 1.1% with exporters providing support. BMW trades up 1.4% and Daimler is higher by 1.2%. Deutsche Lufthansa is the lone decliner, down 0.6%.
In France, the CAC sports an advance of 1.3% with all 40 components trading higher. Financials are among the leaders with BNP Paribas and Societe Generale both up near 1.4%. Industrial name Alstom is the weakest performer, up 0.4%.
Italy's MIB has added 1.4% with help from bank shares. BMPS, Intesa Sanpaolo, Unicredit, and UnipolSai are up between 1.3% and 5.1%.
Great Britain's FTSE is closed

8:31 am: [BRIEFING.COM] S&P futures vs fair value: +9.40. Nasdaq futures vs fair value: +19.50. U.S. equity futures continue holding solid gains with futures on the S&P 500 trading nine points above fair value. Futures have spent the entire night in the green amid upbeat action overseas; however, volume in Europe has been on the light side due to Great Britain's FTSE being closed for a Summer Bank Holiday.

Back in the U.S., M&A activity has been in focus this morning with Intermune (ITMN 73.23, +19.43) agreeing to be acquired by Roche (RHHBY 36.32, 0.00) for $74.00/share, which represents a hefty premium of 38.0% to Friday's closing price.

On a separate note, Burger King Worldwide (BKW 31.00, +3.89) is higher by 14.4% in pre-market after confirming it has entered into merger talks with Tim Hortons (THI 73.25, +10.41). If both parties agree to the merger, the new company will be headquartered in Canada.

7:57 am: [BRIEFING.COM] S&P futures vs fair value: +9.20. Nasdaq futures vs fair value: +20.70. U.S. equity futures trade higher amid upbeat action overseas. The S&P 500 futures hover nine points above fair value, which puts the benchmark index on track to test its recently-established all-time closing high at 1992.37. Investors did not receive any market-moving earnings this morning, but M&A activity has been percolating. As for economic data, it will be limited to the New Home Sales report for July (Briefing.com consensus 427,000), which will be released at 10:00 ET.

Treasuries hover near their highs with the 10-yr yield down two basis points at 2.38%.

In U.S. corporate news of note:

Burger King Worldwide (BKW 31.44, +4.33): +16.0% after confirming merger discussions with Tim Hortons (THI 73.09, +10.25).
Intermune (ITMN 73.36, +19.56): +36.4% after agreeing to be acquired by Roche (RHHBY) for $74.00/share, representing a 38.0% premium to Friday's closing price.
Qihoo 360 Technology (QIHU 97.50, -4.25): -4.2% despite beating estimates and guiding Q3 revenue ahead of estimates.

Reviewing overnight developments:

Asian markets ended mixed. China's Shanghai Composite -0.5%, Hong Kong's Hang Seng +0.2%, and Japan's Nikkei +0.5%
In economic data:
Hong Kong's trade deficit narrowed to HKD42.10 billion from HKD43.10 billion (expected deficit of HKD40.40 billion) as exports rose 6.8% (consensus 5.3%; prior 11.4), while imports increased 7.5% (expected 5.7%; previous 7.6%)
Singapore's CPI eased to 1.2% from 1.8% (expected 2.1%)
In news:
Bank of Japan Governor Haruhiko Kuroda spoke at the Jackson Hole Symposium on Friday evening, reiterating that Japan's inflation is still just halfway to meeting its target and that he will not hesitate to act if needed.

Major European indices trade higher across the board. Germany's DAX +1.0%, France's CAC +1.2%, and Great Britain's FTSE is closed for Summer Bank Holiday. Elsewhere, Italy's MIB +1.4% and Spain's IBEX +1.1%
Economic data was limited:
Germany's Ifo Business Climate Index fell to 106.3 from 108.0 (expected 107.0) as Business Expectations slipped to 101.7 from 103.4 (expected 102.0) and Current Assessment decreased to 111.1 from 112.9 (consensus 112.0)
Spain's PPI slipped 0.4% year-over-year (expected 0.1%; prior 0.4%)
Among news of note:
French President Francois Hollande has dissolved his government following a public feud with cabinet ministers regarding the country's economic malaise.

6:56 am: [BRIEFING.COM] S&P futures vs fair value: +7.50. Nasdaq futures vs fair value: +17.50.

6:56 am: [BRIEFING.COM] Nikkei...15613.25...+74.10...+0.50%. Hang Seng...25166.91...+54.70...+0.20%.

6:56 am: [BRIEFING.COM] FTSE...Holiday......... DAX...9429.96...+90.80...+1.00%.

Bloomberg

http://www.bloomberg.com/news/2014-08-2 ... -data.html

U.S. Stocks Rally as S&P 500 Touches 2,000 for First Time

By Elena Popina Aug 25, 2014 4:39 PM ET

U.S. stocks rose, briefly sending the Standard & Poor’s 500 Index (SPX) above 2,000 for the first time ever, as corporate dealmaking and prospects for economic stimulus in Europe bolstered confidence in the bull market.

The S&P 500 rallied 0.5 percent to 1,997.92 at 4 p.m. in New York, paring gains in the afternoon after holding above 2,000 for less than two hours and reaching a record 2,001.95. The Dow Jones Industrial Average increased 75.65 points, or 0.4 percent, to 17,076.87. About 4.3 billion shares changed hands in the U.S. today, 23 percent below the three-month average.

“This number, 2,000, is a pretty significant number from psychological and financial points,” Joe Bell, senior equity analyst at Cincinnati-based Schaeffer’s Investment Research Inc., said in a phone interview. “Perhaps we might reach a little bit overbought status, and it looks like the index is going to take a breather there.”

Merger and acquisition activity led to some of the biggest moves in the market today. Burger King (BKW) Worldwide Inc. added 20 percent after saying it’s in talks to buy Tim Hortons Inc. and move its headquarters to Canada. InterMune Inc. surged 35 percent after Roche Holding AG purchased the biotechnology company for $8.3 billion. Morgan Stanley climbed to the highest since 2009 and JPMorgan Chase & Co. and Goldman Sachs Group Inc. climbed more than 1.3 percent.
Photographer: Spencer Platt/Getty Images

Traders work on the floor of the New York Stock Exchange on Aug. 22, 2014.

The S&P 500 has recovered almost 100 points since its low during trading on Aug. 7, climbing on nine of 12 days to erase the 3.9 percent drop that began on July 24. The U.S. equity benchmark has advanced for the past three weeks and more than $900 billion has been added to the value of American equities.
European Shares

The Stoxx Europe 600 Index jumped 1.1 percent today as comments by Mario Draghi fanned speculation the European Central Bank is closer to quantitative easing. ECB policy makers “stand ready to adjust our policy stance further” and will use all available instruments to “ensure price stability over the medium term,” Draghi said on Aug. 22.

Futures trading on the Chicago Mercantile Exchange halted for as long as four hours yesterday because of a technical problem, affecting contracts from U.S. stock indexes to Treasuries, oil and gold. CME Group Inc. (CME) suspended all of its Globex electronic-trading markets except for Malaysian equity-index derivatives, according to its website. Trading, which was scheduled to start at 5 p.m. Chicago time for some products, began at 9 p.m.

The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, added 2 percent to 11.70, the most in 10 days. The gauge has lost 15 percent this year.
Burgers, Coffee

All 10 main S&P 500 groups advanced today, with financial, energy and healthcare stocks rising at least 0.7 percent for the best performances. Morgan Stanley added 2.2 percent to $34.20. Goldman Sachs increased 1.4 percent to $177.87 and JPMorgan Chase advanced 1.5 percent to $59.34 for the biggest gains in the Dow.

Burger King, the burger chain that is majority-owned by 3G Capital, added 20 percent to a record $32.40. U.S. shares of Canada’s Tim Hortons jumped 19 percent to $82.03.

Burger King would create the world’s third-largest fast-food chain by merging with Canada’s bigger seller of coffee and doughnuts, the companies said in a statement. Canada’s corporate tax rate is 26.5 percent, compared with 40 percent in the U.S., according to audit, tax and advisory firm KPMG.

InterMune surged 35 percent to $72.85. Roche will buy the unprofitable company that’s awaiting U.S. approval of its biggest drug, for $74 a share, the Basel, Switzerland-based company said yesterday in a statement.

Ann Inc., the owner of the Ann Taylor chain, rose 6.5 percent to $39.94, the highest in six weeks. The company could be valued at $50 to $55 a share to a potential acquirer, such as a private-equity buyer, according to a letter today from investment firms Engine Capital LP and Red Alder LLC.

To contact the reporter on this story: Elena Popina in New York at epopina@bloomberg.net

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net Michael P. Regan

WTI Trades Near 7-Month Low Before Stockpile Data; Brent Steady

http://www.bloomberg.com/news/2014-08-2 ... -data.html

West Texas Intermediate traded near the lowest price in seven months before supply data that may signal the strength of fuel demand in the U.S, the world’s biggest oil consumer. Brent was steady in London.

Futures were little changed in New York after falling 0.3 percent yesterday. Crude inventories probably shrank by 1.8 million barrels to 360.7 million last week, a Bloomberg News survey shows before an Energy Information Administration report tomorrow. Stockpiles have risen to the highest level for this time of the year since 1990 amid increased U.S. production. Libya’s output dropped because of power outages at some fields, according to state-run National Oil Corp.

“The U.S. supply side could potentially just keep prices from escalating, barring any geopolitical twists,” David Lennox, a resource analyst at Fat Prophets in Sydney, said by phone today. “Fresh production in the U.S. has probably been the key to keeping the oil price from shooting a lot higher.”

WTI for October delivery was at $93.58 a barrel in electronic trading on the New York Mercantile Exchange, up 23 cents, at 11:52 a.m. Sydney time. The contract slid 30 cents to $93.35 yesterday, the lowest close since Jan. 14. The volume of all futures traded was about 57 percent below the 100-day average. Prices have declined 4.9 percent this year.

Brent for October settlement was 25 cents higher at $102.90 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $9.27 to WTI. The spread closed at $9.30 yesterday, the widest since March 14.

U.S. gasoline inventories probably decreased by 1.73 million barrels in the week ended Aug. 22, according to the median estimate in the Bloomberg survey of eight analysts. The industry-funded American Petroleum Institute in Washington is scheduled to release separate supply data today.

To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net

To contact the editors responsible for this story: Pratish Narayanan at pnarayanan9@bloomberg.net Yee Kai Pin

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

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