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)


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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ ($80.00) dollars or -0.80 points, EuroFX 6E futures @ $0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @ $1150.00 dollars or +1.15 points. Total Profit @ $1070.00 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 @ CMEGroup
CME EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup
S&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=111&t=1388

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.

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=197&t=1686

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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.

Stocks End Higher As Tech Shares Gain


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

NEW YORK (CNNMoney)
U.S. stocks ended modestly higher Monday as strength in the technology sector overshadowed concerns about the fiscal cliff and political uncertainty in Europe.

The Dow Jones industrial average rose 0.1%, led by shares of tech companies. HP (HPQ, Fortune 500)shares gained 2.7% on unconfirmed reports that activist investor Carl Icahn could take a stake in the computer maker. HP had no comment on the reports and calls to Icahn Enterprises went unanswered. Shares of Cisco (CSCO, Fortune 500) and Microsoft (MSFT, Fortune 500)were also higher.

McDonald's (MCD, Fortune 500) shares gained ground after the fast food chain said global same-store sales, a key metric, rose 2.4% in November, led by sales growth in the United States.

The tech-heavy Nasdaq gained 0.3%. The broad S&P 500, which reflects trading in shares of many multinational companies, ended little changed.

Investors have been reluctant to place big bets before lawmakers reach a compromise on tax increases and spending cuts set to kick in automatically on Jan. 1. Without a deal, the U.S. economy could fall back into a recession.

Obama reiterated his call Monday for Congress to pass legislation to preserve tax breaks for middle class Americans, while allowing tax breaks for the wealthy to expire. But the president said he was willing to work with Republicans on a plan for economic growth, job creation and deficit reduction.

"I understand people have a lot of different views and I'm willing to compromise a little bit," Obama told workers at a manufacturing plant in Michigan.

Europe was also back in the spotlight after Italian Prime Minister Mario Monti unexpectedly announced plans over the weekend to step down after parliament passes a national budget later this month.

The news sent Italian stocks plunging and the yield on the Italian 10-year bond rising to nearly 5%. Investors are worried that Monti's resignation could throw a wrench into Italy's plans to bring down its high levels of debt. Italy is the third largest economy in the euro area and political instability there could reignite the region's debt crisis.

* Italian politics returns to haunt Europe

While markets have rallied under Monti's tenure, analysts say investors have been underestimating Italy's deep economic problems and political dysfunction.

"Markets have grown too complacent about Italy, in our view," said Silvio Peruzzo, an analyst at Nomura Securities, in a note. "Some repricing of the sovereign risk is likely."

European stocks recovered from early losses to close mostly higher. The DAX in Germany gained 0.2%, while shares in London advanced 0.1% and the Paris stock exchanged ended flat.

* Fear & Greed Index stuck in neutral

Investors are also waiting to see how the Federal Reserve will act later in the week.

The Fed's Federal Open Market Committee meeting on Tuesday and Wednesday could move markets. The central bank will have to decide the fate of one of its stimulus programs, Operation Twist, which is set to end this month.

Economists are expecting that the Fed will convert its program from swapping short-term bonds from long-term bonds into an outright bond purchase program.

In other markets, oil prices fell while gold prices moved higher. Bond prices were higher, with the yield on the 10-year Treasury note falling to 1.62%. The U.S. dollar fell versus the euro, British pound and Japanese yen.

In Asia, inflation quickened in China and revised data indicated Japan has slipped into recession. Asian markets ended higher. The Shanghai Composite was the best-performing major index, adding more than 1%.

On the corporate front, shares of Ingersoll-Rand (IR)fell after the company said it plans to spin off its commercial and residential security businesses into a new company. Ingersoll-Rand also announced a $2 billion share repurchase program and boosted its quarterly dividend.

Shares of Priceline (PCLN) fell 5% after Deutsche Bank (DB) downgraded the stock to a 'hold' from a 'buy'.



Market Update

4:10 pm : Equities were little changed during today's session. With no economic data to digest, investors expressed caution after Italy's Prime Minister Mario Monti announced plans to submit his resignation upon the successful approval of the country's budget. However, afternoon reports from the Financial Times indicated Italy's centrist parties are urging Mr. Monti to run on their ticket in next year's election. Domestically, trade was confined to a narrow range and volume was well below-average. As a result, the S&P 500 finished flat.

The technology sector outperformed the broader market despite relative weakness in Apple (AAPL 529.82, -3.42). The largest tech component was down near 2.0% during the opening minutes, but reclaimed a portion of its losses and settled lower by 0.6%.

Seagate (STX 28.91, +0.57) and Western Digital (WDC 38.45, +0.85) saw respective gains of 2.0% and 2.3%. The two hard drive makers were on the rise once again after both gained more than 10.0% last week.

Computer assembler Hewlett-Packard (HPQ 14.16, +0.35) rose by 2.6% following earlier rumors which suggested activist investor Carl Icahn was building a stake in the company.

In M&A news, Intermec (IN 9.82, +1.84) surged 23.1% after being acquired by Honeywell (HON 61.86, -0.11) for $10 per share. The transaction price represents a 27.7% premium to Intermec's Friday closing price.

Consumer discretionary stocks underperformed the broader market despite the strength in shares of McDonald's (MCD 89.41, +0.93). The fast food giant gained 1.1% after reporting a 2.4% increase in global comparable store sales.

Elsewhere in the discretionary space, Priceline (PCLN 625.96, -33.14) slid 5.0% after Deutsche Bank downgraded the stock to ‘Hold' from ‘Buy.' Peer Expedia (EXPE 57.71, -2.17) shed 3.6% after the company announced a special dividend of $0.52 per share.

Gap (GPS 30.89, -0.92) lost 2.9% after Wedbush observed increased promotional activity at Old Navy. An increase in the number of promotions run by the company was viewed as a warning regarding the company's sales. The cautious sentiment was reflected in shares of other apparel retailers as Aeropostale (ARO 13.40, -0.36), Under Armour (UA 50.13, -2.03), and Urban Outfitters (URBN 37.00, -0.37) all lost between 1.0% and 4.0%.

On the upside, Abercrombie & Fitch (ANF 47.31, +0.92) advanced 2.0% after Robert W. Baird upgraded the stock to ‘Outperform' from ‘Neutral.'

The Dow Jones Transportation Average settled higher by 1.1% and all 20 components advanced. Trucking stocks saw relative strength as CH Robinson (CHRW 61.94, +1.34) finished higher by 2.2%. Meanwhile, Con-way (CNW 28.22, +0.64) added 2.3%.

Elsewhere, package delivery services advanced as the group is expected to benefit from increased package volumes during the holiday season. Expeditors International of Washington (EXPD 38.22, +0.64), FedEx (FDX 90.53, +1.17), and UPS (UPS 73.68, +0.51) all gained between 0.7% and 2.5%. Last week, FedEx said it expects a record 19 million packages to move through its network today.

Tomorrow's economic data will be limited to the October trade balance and wholesale inventories. The two data points are scheduled to be released at 8:30 ET and 10:00 ET, respectively.

The U.S. Treasury will auction off $32 billion in 3-yr notes.DJ30 +14.75 NASDAQ +8.92 SP500 +0.48 NASDAQ Adv/Vol/Dec 1417/1.48 bln/1052 NYSE Adv/Vol/Dec 1666/592.8 mln/1345

3:30 pm : Crude oil retreated from its session high of $86.65 per barrel set at the floor open and sold-off into negative territory as it headed into the close. The energy component brushed a session low of $85.33 per barrel moments before settling with a 0.3% loss at $85.59 per barrel.

Natural gas extended last week's losses as investors reacted to forecasts of mild weather for December that could curb demand. It plunged as low as $3.41 per MMBtu in late morning pit action and closed at $3.46 per MMBtu, or 2.5% lower.

Gold advanced for a third consecutive session ahead of the upcoming Federal Reserve meeting and on news that Italian Prime Minister Mario Monti is prepared to resign once the country passes its budget. The yellow metal slightly pulled-back from its session high of $1718.80 per ounce set it early morning pit action but held steady as it traded in a consolidative fashion just below that level for the remainder of the session. It eventually settled 0.5% higher at $1714.20 per ounce. Silver also traded higher and touched a session high of $33.49 per ounce moments after floor trade opened. It ultimately booked a 0.7% gain as it closed at $33.37 per ounce.DJ30 +30.26 NASDAQ +8.22 SP500 +1.12 NASDAQ Adv/Vol/Dec 1302/1.19 bln/1177 NYSE Adv/Vol/Dec 1584/374.9 mln/1410

3:00 pm : Uneventful trade continues and the S&P 500 is higher by 0.1%.

Casey's General Stores (CASY 48.64, -1.17) and Tevana (TEA 15.44, 0.00) are among the notable names scheduled to report their quarterly results following today's close. The Capital IQ consensus expects Casey's General Stores to announce earnings of $0.87 on $1.92 billion in revenue. Meanwhile, Teavana is expected to report a loss of $0.01 on revenue of $44.72 million.

Tomorrow morning, Dollar General (DG 16.39, -0.41) will report its quarterly results.DJ30 +25.31 NASDAQ +9.00 SP500 +1.12 NASDAQ Adv/Vol/Dec 1259/1.09 bln/1223 NYSE Adv/Vol/Dec 1536/343.1 mln/1441

2:30 pm : The key indices continue to hover near their recent levels and the S&P 500 is higher by 0.1%.

Gap (GPS 30.65, -1.16) is down 3.7% after Wedbush observed increased promotional activity at Old Navy. An increase in the number of promotions run by the company is being viewed as a warning regarding the company's sales. The cautious sentiment is also being reflected in shares of other apparel retailers. Under Armour (UA 49.85, -2.31) is down 4.4% and Urban Outfitters (URBN 37.10, -0.27) is off by 0.7%.

On the upside, Abercrombie & Fitch (ANF 47.16, +0.77) is advancing 1.7% after Robert W. Baird upgraded the stock to ‘Outperform' from ‘Neutral.'DJ30 +23.83 NASDAQ +8.12 SP500 +1.02 NASDAQ Adv/Vol/Dec 1230/996.3 mln/1230 NYSE Adv/Vol/Dec 1551/314.1 mln/1420

2:00 pm : Quiet afternoon trade continues and the S&P 500 has returned to its unchanged level.

The materials sector is leading the broader market due to general strength among steel producers. The Market Vectors Steel ETF (SLX 45.77, +0.60) is rising by 1.3% and Cliffs Natural Resources (CLF 30.86, +1.45) is one of the top performers. After marking its 52-week low at $28.05 last Tuesday, the stock is higher by 4.6% as it attempts to rebound from year-long weakness.DJ30 +17.48 NASDAQ +6.95 SP500 +0.44 NASDAQ Adv/Vol/Dec 1253/916.8 mln/1186 NYSE Adv/Vol/Dec 1526/289.1 mln/1416

1:25 pm : The S&P 500 is slowly retreating towards its unchanged level, but the index remains firmer by 0.1%.

The Dow Jones Transportation Average is higher by 0.8% and all 20 components are advancing. Trucking stocks are seeing relative strength as CH Robinson (CHRW 61.67, +1.07) trades higher by 1.8%. Meanwhile, Con-way (CNW 28.00, +0.42) is adding 1.6%.

Elsewhere, package delivery services are advancing as the group is expected to benefit from increased package volumes during the holiday season. Expeditors International of Washington (EXPD 38.01, +0.67), FedEx (FDX 90.22, +0.86), and UPS (UPS 73.67, +0.50) are all up between 0.7% and 1.8%. Last week, FedEx said it expects a record 19 million packages to move through its network today.DJ30 +20.79 NASDAQ +6.41 SP500 +0.78 NASDAQ Adv/Vol/Dec 1272/838.1 mln/1150 NYSE Adv/Vol/Dec 1586/266.5 mln/1350

1:00 pm : Equities began the week on a mixed note as news out of Europe indicated Italian Prime Minister Mario Monti is prepared to resign once the country passes its budget. The markets received the announcement with caution and Italy's FTSE MIB lost 2.2% while the country's 10-yr yield added 29 basis points, to 4.817%. The U.S. session has been relatively quiet as the major averages followed the initial indecision with a rise to their respective highs. At midday, the S&P 500 is adding 0.1%.

The technology sector is outperforming the broader market, and the SPDR Technology Select Sector ETF (XLK 28.83, +0.06) is higher by 0.2%. Apple (AAPL 529.63, -3.61) was down close to 2.0% during the opening minutes, but has reclaimed a portion of its losses since. The largest tech component is currently off by 0.7%.

Seagate (STX 28.73, +0.39) and Western Digital (WDC 38.27, +0.67) are firmer by 1.5% and 1.8%, respectively. The two hard drive makers are on the rise once again after both have gained over 10.0% over the course of the last week.

Computer assembler Hewlett-Packard (HPQ 14.24, +0.43) is advancing 3.1% after earlier rumors suggested activist investor Carl Icahn was building a stake in the company.

Also of note, STMicroelectronics (STM 6.72, +0.24) is rising by 3.7% after announcing plans to terminate its partnership with Sweden-based Ericsson.

In M&A news, Intermec (IN 9.81, +1.83) is surging 22.9% after being acquired by Honeywell (HON 61.77, -0.19) for $10 per share. The transaction price represents a 27.7% premium to Intermec's Friday closing price.

Financial stocks were broadly lower in the early going as investors questioned Italy's near-term future. The financial sector is highly sensitive to European developments, and added uncertainty is expected to weigh on the space. However, major names have been able to trim the bulk of their early losses. Bank of America (BAC 10.57, -0.07), Citigroup (C 37.39, -0.25), and JPMorgan Chase (JPM 42.40, -0.16) are all down between 0.4% and 0.6%. Meanwhile, European financials are seeing wider losses. Deutsche Bank (DB 44.31, -0.51) is sliding 1.1% and Banco Santander (SAN 7.43, -0.16) is down 2.1%.

Consumer discretionary stocks are underperforming the broader market despite the strength in shares of McDonald's (MCD 89.67, +1.19). The fast food giant is rising by 1.3% after reporting a 2.4% increase in global comparable store sales.

Elsewhere in the discretionary space, Priceline (PCLN 626.55, -32.55) is down 4.9% after Deutsche Bank downgraded the stock to ‘Hold' from ‘Buy.' Peer Expedia (EXPE 57.61, -2.27) is off by 3.8% after the company announced a special dividend of $0.52 per share.DJ30 +29.21 NASDAQ +7.96 SP500 +1.62 NASDAQ Adv/Vol/Dec 1283/778.5 mln/1139 NYSE Adv/Vol/Dec 1628/247.1 mln/1292

12:30 pm : The major averages are holding their recent levels and the S&P 500 is higher by 0.2%.

Coal stocks are generally lower as industry-wide weakness continues. Earlier, Goldman Sachs cut its estimates for met coal prices and major producers are underperforming in the wake of the announcement. CONSOL Energy (CNX 32.68, -0.34) and Arch Coal (ACI 7.19, -0.07) are both down near 1.0%. Meanwhile, Westmoreland Coal (WLB 10.14, +0.06) is higher by 0.6% as it outperforms.DJ30 +30.68 NASDAQ +12.53 SP500 +2.56 NASDAQ Adv/Vol/Dec 1345/711.2 mln/1062 NYSE Adv/Vol/Dec 1684/228.3 mln/1224

12:00 pm : The S&P 500 is off its highs, but the benchmark index remains firmer by 0.1%.

Health care stocks are outperforming on the strength in biotech names. Alexion Pharmaceuticals (ALXN 93.15, +1.65) is advancing 1.8% after presenting new data which demonstrated long-term benefits of Soliris in treatment of patients with paroxysmal nocturnal hemoglobinuria.

Among stocks reacting to analyst comments, AthenaHealth (ATHN 75.76, +1.87) is higher by 2.5% after Sterne Agee upgraded the stock to ‘Neutral' from ‘Underperform.' Elsewhere, Forest Laboratories (FRX 36.59, +0.87) is rising by 2.4% after Cowen & Company upgraded the stock to ‘Outperform' from ‘Neutral.'DJ30 +30.84 NASDAQ +13.20 SP500 +2.13 NASDAQ Adv/Vol/Dec 1342/636.1 mln/1029 NYSE Adv/Vol/Dec 1662/206.8 mln/1211

11:25 am : Equities are holding their recent levels and the S&P 500 is higher by 0.1%.

Financial stocks are trading lower as Italy's near-term future comes into question. The financial sector is highly sensitive to European developments, and added uncertainty is expected to weigh on the space. Looking at the majors, Citigroup (C 37.15, -0.48), JPMorgan Chase (JPM 42.12, -0.44), and Morgan Stanley (MS 16.84, -0.13) are all down between 0.7% and 1.3%.

Meanwhile, European financials are seeing wider losses. Deutsche Bank (DB 44.11, -0.71) is sliding 1.6% and Banco Santander (SAN 7.38, -0.21) is down 2.8%.DJ30 +27.70 NASDAQ +15.92 SP500 +1.95 NASDAQ Adv/Vol/Dec 1337/537.1 mln/1002 NYSE Adv/Vol/Dec 1636/178.6 mln/1210

11:00 am : The S&P 500 is rising by 0.3% as it trades near its session high.

The technology sector is leading the broader market and the SPDR Technology Select Sector ETF (XLK 28.96, +0.19) is higher by 0.7%.

Apple (AAPL 535.91, +2.66) was down close to 2.0% during the opening minutes, but has reversed since. The largest tech component is currently adding 0.5%.

Seagate (STX 28.97, +0.63) and Western Digital (WDC 38.50, +0.90) are firmer by 2.2% and 2.4%, respectively. The two hard drive makers are on the rise once again after gaining over 10.0% each over the course of last week.

Hewlett-Packard (HPQ 14.26, +0.45) is advancing 3.3% after earlier rumors suggested activist investor Carl Icahn was building a stake in the company.

Also of note, STMicroelectronics (STM 6.76, +0.28) is rising by 4.3% after announcing plans to terminate its partnership with Sweden-based Ericsson.DJ30 +35.22 NASDAQ +18.33 SP500 +3.06 NASDAQ Adv/Vol/Dec 1308/457.9 mln/985 NYSE Adv/Vol/Dec 1632/155.3 mln/1208

10:30 am : Crude oil pulled-back from its session high of $86.65 set at pit trade open, giving up most of its overnight gains. The energy component dipped as low as $85.98 and is now slightly above that level at $86.30, or up 0.4%.

Natural gas is struggling in negative territory after falling to a session low of $3.43. It has been inching slightly higher in recent action but is still down 2.3% at $3.47.

Gold and silver are trading higher in today's morning floor trade, but have retreated from their respective session highs of $1718.80 and $33.49. Gold is currently up 0.6% at $1715.00 while silver is 0.7% higher at $33.39.DJ30 +24.19 NASDAQ +9.78 SP500 +0.70 NASDAQ Adv/Vol/Dec 1211/339.5 mln /1028 NYSE Adv/Vol/Dec 1497/123.1 mln/1257

10:05 am : The S&P 500 has returned into positive territory and the index now trades higher by 0.1%.

Consumer discretionary stocks are underperforming the broader market despite the strength in shares of McDonald's (MCD 89.19, +0.71). The fast food giant is advancing 0.9% after reporting a 2.4% increase in global comparable store sales.

Elsewhere in the discretionary space, Priceline (PCLN 631.00, -28.10) is down 4.3% after Deutsche Bank downgraded the stock to ‘Hold' from ‘Buy.'

Expedia (EXPE 58.73, -1.15) is off by 1.9% after the company announced a special dividend of $0.52 per share.DJ30 +31.59 NASDAQ +10.53 SP500 +1.18 NASDAQ Adv/Vol/Dec 1218/218.3 mln/963 NYSE Adv/Vol/Dec 1477/92.3 mln/1220

09:45 am : The major averages have maintained their pre-market sentiment. The S&P 500 is off by 0.1% while the Dow is adding 0.1%.

Materials and industrials are among the early leaders while financials and telecoms lag.

Apple (AAPL 525.33, -7.92) is down near 1.5% as the stock continues to underperform.

Intermec (IN 9.79, +1.81) is higher by 22.7%. The tech company leads the S&P 500 after being acquired by Honeywell (HON 61.70, -0.27) for $10 per share. The transaction price represents a 27.7% premium to Intermec's Friday closing price.DJ30 +8.14 NASDAQ -0.62 SP500 -1.55 NASDAQ Adv/Vol/Dec 1132/112.1 mln/968 NYSE Adv/Vol/Dec 1303/63.2 mln/1300

09:15 am : [BRIEFING.COM] S&P futures vs fair value: -2.20. Nasdaq futures vs fair value: -7.50. Heading into the open, equity futures remain mixed. The S&P 500 and Nasdaq futures are pointing lower, while Dow futures are marginally higher.

McDonald's (MCD 90.15, +1.67) is adding 1.9% after the company reported a 2.4% increase in global comparable store sales.

Apple (AAPL 526.50, -6.75) is under early pressure as the shares of the largest tech company trade lower by 1.3%.

In addition, the financial sector is poised for a lower open as Citigroup (C 37.41, -0.23) and Morgan Stanley (MS 16.89, -0.08) see respective losses of 0.6% and 0.5%.

08:57 am : [BRIEFING.COM] S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -5.80. Equity futures are mixed as the Nasdaq futures trade lower by 0.1% while Dow futures are adding 0.1%.

A handful of names are on the move following analyst comments. CME Group (CME 53.97, -0.99) is lower by 1.8% after Goldman Sachs downgraded the stock to ‘Neutral' from ‘Sell.' Meanwhile, Best Buy (BBY 11.82, -0.17) is slipping 1.4% after Bank of America/Merrill Lynch initiated coverage with an ‘Underperform' rating.

On the upside, Abercrombie & Fitch (ANF 47.30, +0.91) is advancing 2.0% after Robert W. Baird upgraded the teen retailer to ‘Outperform' from ‘Neutral' with a $55 price target. Elsewhere, Freeport-McMoRan (FCX 32.05, +0.35) is higher by 1.1% after Bank of America/Merrill Lynch resumed coverage with a ‘Neutral' rating.

08:32 am : [BRIEFING.COM] S&P futures vs fair value: -2.20. Nasdaq futures vs fair value: -6.50. U.S. equity futures are off their lows, but the S&P 500 futures remain lower by 0.1%.

European markets are generally lower after Italian Prime Minister Mario Monti announced his intentions to resign. However, the resignation will not occur until a new budget is agreed upon. The official end of Monti's mandate is scheduled for April, but an early election could be held as early as February. As the vote approaches, former Prime Minister Silvio Berlusconi is tossing his hat back into the ring to run for his fourth term. The instability is contributing to a risk-off sentiment and the euro has slipped near the 1.2900 level.Italy's FTSE MIB is underperforming the region, down 3.2%. Meanwhile, the country's benchmark 10-yr yield is adding 33 basis points, to 4.855%. In notable economic data, Italy's industrial production declined by 1.1% month-over-month, while the figure was expected decrease by 0.2%. Elsewhere, France saw its industrial production slip 0.7% month-over-month against expectations of a 0.3% downtick.

In the United Kingdom, the FTSE is off by 0.2% and miners are under pressure. Eurasian Natural Resources and Fresnillo are both down near 1.5%. On the upside, consumer stocks are seeing strength. Associated British Foods and Tate & Lyle are up 1.4% and 1.0%, respectively.

France's CAC is lower by 0.5% and financials are lagging. BNP Paribas, Credit Agricole, and Societe Generale are the weakest index components, down between 3.3% and 3.5%. STMicroelectronics is the top index performer. The tech name is adding 2.0% after announcing plans to end its joint venture with Ericsson.

In Germany, the DAX is slipping 0.5% and financials are underperforming as well. Commerzbank and Deutsche Bank are down between 2.0% and 3.0%. Meanwhile, consumer stocks are registering gains. Fresenius Medical and Henkel are both up near 0.4%.

Italy's FTSE MIB is sliding 3.2% and financials are feeling the brunt of the losses. Banco Popolare, Mediolanum, Intesa Sanpaolo, and UniCredit are all down between 6.0% and 7.2%. STMicroelectronics is the only advancer among Italian stocks, up 2.3%.

The major Asian bourses were mixed and China's Shanghai Composite outperforming with a 1.1% gain. Data showed CPI climb 2.0% year-over-year (2.1% expected); PPI ease 2.2% year-over-year (2.0% expected); fixed asset investment advance 20.7% year-to-date (21.0% expected); industrial production grow 10.1% year-over-year (9.8% expected); and the trade surplus narrow to $19.6 billion ($26.7 billion expected, $32.0 billion previous) as exports rose just 2.9% (9.0% expected). Other data from the region showed Japan's BSI Manufacturing Index (-10.3 actual versus 4.3 expected) and Final GDP (-0.9% quarter-over-quarter actual v. -0.8% quarter-over-quarter expected) both missed estimates while the current account balance (JPY0.41 trillion actual versus JPY0.25 trillion expected) posted a beat. Japan has slid back into recession with a second straight quarter of negative growth. Elsewhere, Australia's home loans was the latest number to disappoint, posting a weak 0.1% month-over-month gain (3.1% expected).

In Japan, the Nikkei added 0.1% as exporters were under pressure following the disappointing Chinese trade data. Meanwhile, Fast Retailing outperformed, jumping 1.5% after Nomura raised its target.

Hong Kong's Hang Seng finished higher by 0.4% to close at its best level in 16 months. Cnooc jumped 1.1% after its buyout of Canada's Nexen was approved. Elsewhere, property names continued their push to record highs as China Land Resources lead the way with a 2.1% gain.

In China, the Shanghai Composite advanced 1.1% following this weekend's data dump. Automakers were strong as FAW gained 3.8% to lead the sector's advance. Elsewhere, construction names firmed with Guangxi Liugong Machinery tacking on 2.9%.

08:00 am : S&P futures vs fair value: -3.70. Nasdaq futures vs fair value: -8.50. U.S. equity futures are modestly lower amid cautious European trade.

Overnight, the global equity markets painted a mixed picture. Asian indices closed on a higher note, while their European counterparts are trading lower. In Asia, a slew of data was released and most of it was disappointing. Summarizing the key figures, China's November CPI came in slightly lower-than-expected, industrial production was better-than-expected, and retail sales beat expectations as well. However, Chinese trade surplus of $19.6 billion was well below the expected reading of $25.7 billion. The data produced choppy trade, though the Shanghai managed to settle higher by 1.1%. In Japan, third quarter GDP missed expectations, contracting 10 basis points more than the expected, and coming in at -0.9%. Also in Japan, LDP leader Shinzo Abe put an end to speculation of a potential coalition government with the current Prime Minister Noda. Looking at regional indices, Japan's Nikkei added 0.1% and Hong Kong's Hang Seng advanced 0.4%.

European markets are generally lower after Italian Prime Minister Mario Monti announced his intentions to resign. However, the resignation will not occur until a new budget is agreed upon. The official end of Monti's mandate is scheduled for April, but an early election could be held as early as February. As the vote approaches, former Prime Minister Silvio Berlusconi is tossing his hat back into the ring to run for his fourth term. The instability is contributing to a risk-off sentiment and the euro has slipped near the 1.2900 level. Meanwhile, Italy's FTSE MIB is down near 3.5% and the country's benchmark 10-yr yield is adding 33 basis points, to 4.855%. The other European bourses are also lower, but their losses are limited. UK's FTSE is off by 0.3% while France's CAC and Germany's DAX are both down 0.6%. In notable economic data, France's industrial production saw a 0.7% month-over-month decline on expectations of a 0.3% downtick. Elsewhere, Italy's industrial production declined by 1.1% month-over-month, while the figure was expected decrease by 0.2%.

In U.S. corporate news, Intermec (IN 9.88, +1.90) is surging 23.8% after the company was acquired by Honeywell (HON 61.97, 0.00) for $10 per share. The transaction price represents a 27.7% premium to Intermec's Friday closing price.

Nexen (NXY 27.10, +3.58) is higher by 15.2% after Canadian authorities approved the merger with Chinese Cnooc. Shortly before Friday's close, Nexen fell nearly 7.0% when a press conference was scheduled after the close. The announcement resulted in uncertainty over the status of the deal and the stock responded by selling off into the close.

Ingersoll-Rand (IR 49.80, +1.11) is advancing 2.3% after confirming plans to spin-off its commercial and residential security businesses. In addition, the company announced a new share repurchase program of up to $2 billion of company's ordinary shares. Lastly, the company increased its quarterly dividend by 31% to $0.21 per share.

There is no notable data on today's economic calendar.

06:38 am : [BRIEFING.COM] S&P futures vs fair value: -4.00. Nasdaq futures vs fair value: -8.00.

06:38 am : Nikkei...9533.75...+6.40...+0.10%. Hang Seng...22276.72...+85.60...+0.40%.

06:38 am : FTSE...5896.51...-17.90...-0.30%. DAX...7475.51...-42.30...-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 and http://stocktwits.com/wrbtrader

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