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


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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $1470.00 dollars or +14.70 points, EuroFX 6E futures @ $0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @ $80.00 dollars or +0.08 points. Total Profit @ $1550.00 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 on the Freenode IRC network (chat room no longer located on the Othernet IRC network). You can read today's ##TheStrategyLab 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=113&t=1425

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=199&t=1715

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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 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, Gold GC futures, Oil CL & Brent futures, Eurex DAX futures, Emini ES futures, Emini TF futures, Treasury ZB futures) 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.






Market Update

4:30 pm : Equities began the day on a mixed note, but the slightly bearish bias which persisted throughout the day caused the major averages to end near their lows. The S&P 500 slipped 0.4%, and was the weakest performing index.

Shortly before the open, the Bureau of Economic Analysis said fourth quarter GDP contracted by 0.1%. This fell short of the 1.0% growth forecast by the Briefing.com consensus. While the number was a disappointment on the surface, a 22.2% decline in government defense spending contributed to the miss. Meanwhile, personal consumption expenditures, which account for more than 70% of GDP, rose 2.2%. This was the largest quarterly uptick since a 2.4% increase in consumption was reported during the first quarter of 2012. Additionally, the rise in spending was slightly above its eight-month average rate of change.

Morning trade proved to be largely uneventful as investors anticipated the afternoon policy statement from the Federal Open Market Committee. The pronouncements on the economy, inflation, and inflation expectations were little changed. It was said that growth in economic activity "has paused in recent months," but there didn't appear to be any undue concern about an extended downturn as the "pause" was attributed largely to weather and other transitory factors. The asset purchase program is expected to remain in place until unemployment slips below 6.5% or inflation projections take a turn for the worse.

While the FOMC statement and the GDP reading were in focus today, the market also received earnings from two notable names.

Amazon.com (AMZN 272.76, +12.41) jumped 4.8% after the online merchant reported its operating income well ahead of analyst expectations. The strength in Amazon helped the Nasdaq outperform for the bulk of the day, but the index succumbed to broader market weakness in afternoon trade.

Also of note, Boeing (BA 74.59, +0.94) gained 1.3% after its top and bottom lines came in ahead of the Capital IQ consensus estimates. However, the defense contractor guided its full-year 2013 earnings and revenue below consensus.

Though Boeing outperformed, the industrial space lost 0.9%, and was the worst performing S&P 500 sector.

Elsewhere, the Dow Jones Transportation Average lost 1.5%, and was a notable laggard. The bellwether sector lagged considerably as 17 of its 20 components settled with losses. The four railroads which comprise the transportation average were all down in excess of 1.0% with Union Pacific (UNP 131.17, -3.59) sagging 2.7%.

In addition, trucking stocks were broadly weaker. Con-way (CNW 31.56, -1.06) fell 3.3% while CH Robinson (CHRW 67.14, -0.78), JB Hunt (JBHT 67.19, -0.90), and Landstar (LSTR 58.36, -0.85) lost near 1.5% each. Note that today's underperformance from transportation stocks came after the average rallied more than 8.0% since the start of 2013.

As mentioned earlier, the S&P 500 was pressured by industrials (-0.9%). In addition, energy (-0.7%), materials (-0.6%), and financials (-0.5%) weighed. On the upside, utilities (UNCH) outperformed, and the sector was followed by discretionary (-0.2%) and consumer staples (-0.2%).

The CBOE Volatility Index (VIX 14.27, +0.96) added more than 7.0%, and settled at its highest level since January 7. Looking at the term structure of VIX futures, the front-month contracts received the most notable interest during today's session. In addition, October VIX futures have crept up to 20.00.

Today's floor volume at the New York Stock Exchange was in-line with its 50-day average as just over 700 million shares changed hands.

Looking back at the day's economic data, the weekly MBA Mortgage Index declined by 8.1% to follow last week's uptick of 7.0%.

According to today's ADP National Employment Report, employment in the nonfarm private business sector rose by 192K in January. This was above the 175K increase expected by the Briefing.com consensus. The prior month's reading was revised down to 185K from 215K.

Tomorrow, investors will receive a full slate of economic releases. At 7:30 ET, January Challenger Job Cuts will be announced. At 8:30, weekly initial and continuing claims, December personal income, personal spending, core PCE prices, and fourth quarter employment cost index will all be reported. Finally, the January Chicago PMI will cross the wires at 9:45 ET. In earnings of note, Dow Chemical (DOW 34.61, -0.12) and UPS (UPS 81.23, -0.98) will announce their quarterly results ahead of the open.DJ30 -44.00 NASDAQ -11.35 SP500 -5.88 NASDAQ Adv/Vol/Dec 755/1.94 bln/1722 NYSE Adv/Vol/Dec 990/704.6 mln/1969

3:30 pm :

Crude oil dipped into negative territory and to its session low of $97.34 per barrel following inventory data that showed a build of 5.947 mln barrels when a smaller build of 2.55 mln barrels was anticipated. However, the energy component recovered back into the black as a weaker dollar index gave a boost to prices. It brushed a session high of $97.98 per barrel moments before settling with a 0.4% gain at $97.94 per barrel.
Natural gas rose for the first time following six consecutive sessions of losses. It came off its session low of $3.27 per MMBtu and trended higher to a session high of $3.34 per MMBtu. It settled at $3.34 per MMBtu for a gain of 2.5%.
Gold brushed a session low of $1662.30 per ounce shortly after pit trade opened but rallied moments later on GDP data that fell short of expectations. The yellow metal advanced to a session high of $1682.20 per ounce and held steady, settling the session 1.2% higher at $1680.00 per ounce.
Silver also rose as the dollar index weakened. It lifted from its session low of $31.25 per ounce and brushed a session high of $32.19 per ounce before settling with 3.1% higher at $32.18 per ounce.

DJ30 -42.10 NASDAQ -12.87 SP500 -5.79 NASDAQ Adv/Vol/Dec 786/1624.7 mln/1683 NYSE Adv/Vol/Dec 970/468 mln/1962

3:00 pm : The major averages are hovering near their respective lows as the final hour of trade begins. Today, the market received two notable economic data points. First, the Bureau of Economic Analysis said that fourth quarter GDP contracted by 0.1%. While the reading fell short of the expected growth of 1.0%, the decline was largely due to a notable decline in government defense spending. Meanwhile, the largest GDP component, personal consumption, rose by 2.2%.

Recently, the Federal Open Market Committee released its latest policy statement, which said recent months have seen a pause in economic activity. The Committee attributed the slowdown to "weather-related disruptions and other transitory factors." In addition, the Fed will continue its purchasing program according to plan.

As the three indices trade near their lows, the Nasdaq is outperforming slightly after Amazon.com (AMZN 273.50, +13.13) reported its operating income ahead of analyst expectations.DJ30 -24.52 NASDAQ -4.39 SP500 -3.14 NASDAQ Adv/Vol/Dec 843/1.45 bln/1590 NYSE Adv/Vol/Dec 1084/421.2 mln/1862

2:35 pm : The major averages ticked lower in reaction to the latest policy statement from the Federal Reserve. However, the three indices remain confined to their ranges. The benchmark S&P 500 index is off by 0.1%.

The Federal Open Market Committee said it has observed a pause in economic activity during recent months. Adverse weather as well as "other transitory factors" were cited as elements which contributed to the slowdown. Additionally, the Committee "will continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month."

For the most part, the statement did not contain major surprises as the Fed acknowledged accommodative monetary policy will continue in the near futures. Esther George of the Kansas City Federal Reserve was the lone dissenter.DJ30 -11.79 NASDAQ -1.48 SP500 -1.74 NASDAQ Adv/Vol/Dec 877/1.33 bln/1545 NYSE Adv/Vol/Dec 1157/382.7 mln/1782

2:05 pm : Sideways trade continues as the traders await the 14:15 ET policy statement from the Federal Reserve. While no change is expected to the Fed Funds Rate, remarks from the Federal Open Market Committee will be watched closely for hints suggesting alterations to the current asset purchase program.

The 10-yr yield is near the top of its session range, at 2.03%. Yield on the 10-yr note saw a brief dip below 2.00% after this morning's GDP report pointed to a 0.1% contraction during the fourth quarter. The headline number fell short of expectations partly due to a 22.2% decrease in government defense spending. Meanwhile, the largest GDP component, personal consumption, rose 2.2%, which was the largest uptick since the first quarter of 2012 saw an increase of 2.4%.DJ30 -6.67 NASDAQ -0.10 SP500 -0.94 NASDAQ Adv/Vol/Dec 918/1.22 bln/1473 NYSE Adv/Vol/Dec 1215/348.4 mln/1704

1:30 pm : The major averages remain near their respective unchanged lines. The market is seeing little change ahead of the policy announcement from the Federal Reserve, scheduled for 14:15 ET.

Tech shares are seeing some buying interest after the sector saw broad losses yesterday. The PHLX Semiconductor Index is adding 0.6% as it outperforms the broader market. Additionally, Amazon.com (AMZN 272.33, +11.98) has provided support to tech stocks after reporting its operating income ahead of analyst expectations.

On the downside, the Dow Jones Transportation Average is shedding 1.3% after the bellwether complex rallied more than 8.0% since the start of the year. While the vast majority of index components are trading in the red, railroads and trucking stocks are among the weakest performers. Union Pacific (UNP 132.31, -2.45) is down 1.8% and Con-way (CNW 31.67, -0.95) is lower by 2.9%.DJ30 +6.05 NASDAQ +0.50 SP500 -0.14 NASDAQ Adv/Vol/Dec 932/1.13 bln/1456 NYSE Adv/Vol/Dec 1213/321.1 mln/1687

1:00 pm : Equities began today's session on a mixed note. The tech-heavy Nasdaq saw slim gains after Amazon.com's (AMZN 274.98, +14.63) operating profit exceeded expectations. Meanwhile, the broader S&P 500 has spent the day in a narrow seven point range after the advance fourth quarter GDP reading fell short of expectations.

The Bureau of Economic Analysis said this morning that fourth quarter GDP contracted 0.1% while the Briefing.com consensus expected an uptick of 1.0%. The headline number was impacted negatively by a 22.2% decline in government defense spending. Meanwhile, consumption, which accounts for more than 70% of GDP, rose by 2.2%, which was the largest improvement since the first quarter of 2012.

The major averages have been unable to stage a meaningful move one way or the other as traders await word from the Federal Open Market Committee. At 14:15 ET, the Fed will release the interest rate decision as well as its policy statement. While no change is expected to the Fed Funds Rate, the statement will be watched for hints suggesting changes to the central bank's asset purchase program.

As quiet afternoon trade unfolds, the Dow Jones Transportation Average has been a notable laggard. The bellwether sector is down 1.4% as 18 of its 20 components trade with losses. The four railroads which comprise the transportation average are all down in excess of 1.0%, and Union Pacific (UNP 131.99, -2.77) is the weakest performer, down 2.1%.

In addition, trucking stocks are broadly weaker. Con-way (CNW 31.71, -0.91) is down 2.8% while CH Robinson (CHRW 66.93, -0.99), JB Hunt (JBHT 67.05, -1.04), and Landstar (LSTR 58.41, -0.80) are all down near 1.5%.

Note that today's underperformance from transportation stocks comes after the average has rallied more than 8.0% since the start of 2013.

The CBOE Volatility Index (VIX 13.95, +0.64) is higher by 4.8% as the measure indicates near-term downside protection is being bid. However, looking at the term structure of VIX futures reveals that the buying interest is the strongest in front-month contracts.

Reviewing today's economic data, the weekly MBA Mortgage Index declined by 8.1% to follow last week's uptick of 7.0%.

According to today's ADP National Employment Report, employment in the nonfarm private business sector rose by 192K in January. This was above the 175K increase expected by the Briefing.com consensus. The prior month's reading was revised down to 185K from 215K.DJ30 +6.91 NASDAQ +1.59 SP500 -0.24 NASDAQ Adv/Vol/Dec 917/1.05 bln/1474 NYSE Adv/Vol/Dec 1184/296.2 mln/1697

12:30 pm : The key indices continue to trade near their respective unchanged levels. The major averages started the session on a mixed note after the fourth quarter GDP reading missed expectations. The reported 0.1% contraction was largely due to a decline in government defense spending. Equity futures sold off immediately after the data hit the wires, but the weakness was bid into the open. Since then, the S&P 500 has traded in a narrow seven point range as investors await the Federal Reserve's policy statement, scheduled for 14:15 ET.

The Nasdaq, which has spent the majority of the session in the black, is now trading lower. The index is outperforming after Amazon.com (AMZN 273.88, +13.53) reported strong operating profit.DJ30 -17.00 NASDAQ -1.82 SP500 -2.88 NASDAQ Adv/Vol/Dec 892/959.3 mln/1488 NYSE Adv/Vol/Dec 1112/272.2 mln/1758

12:00 pm : Quiet trade continues as the major averages remain confined to relatively narrow ranges. The Nasdaq is the top performing index as it trades higher by 0.1%.

The relative strength of the tech-oriented index is partially due to upbeat quarterly results from Amazon.com (AMZN 276.51, +16.16), which reported strong operating income growth. Elsewhere in tech, Broadcom (BRCM 34.24, +0.53) is adding 1.6% after beating on earnings.

While tech stocks trade with a mildly bullish bias, the broader S&P 500 index is flat as investors await the policy statement from the Federal Reserve. The Federal Open Market Committee will announce its interest rate decision as well as its policy statement at 14:15 ET.DJ30 -1.60 NASDAQ +2.79 SP500 -1.07 NASDAQ Adv/Vol/Dec 920/866.5 mln/1437 NYSE Adv/Vol/Dec 1170/246.1 mln/1677

11:30 am : The major averages continue to trade within points of their respective unchanged levels. The wait-and-see mindset is manifesting itself ahead of the Federal Reserve's policy statement scheduled for a 14:15 ET release.

Earlier, it was reported that fourth quarter GDP contracted by 0.1%, which fell short of the expected growth of 1.0%. While the headline number was negatively impacted by cuts to defense spending, personal consumption, which constitutes more than 70% of GDP, rose by 2.2%. This uptick was the biggest change to consumption since the first quarter of 2012.

Among stocks reacting to earnings, Amazon.com (AMZN 276.54, +16.19) is surging 6.2% after the company's operating income was reported well ahead of analyst expectations.DJ30 -5.95 NASDAQ +2.66 SP500 -1.23 NASDAQ Adv/Vol/Dec 880/761.1 mln/1460 NYSE Adv/Vol/Dec 1135/220.1 mln/1702

11:00 am : The major averages are trading near their respective lows. The S&P 500 is the weakest index as it trades lower by 0.2%.

This morning, the fourth quarter GDP reading surprised to the downside as the 0.1% contraction fell short of the 1.0% growth forecast by the Briefing.com consensus. While the report was a disappointment on the surface, a decrease in government spending related to sequester cuts as well as a reduction in business inventories contributed to the miss. Meanwhile, personal consumption, which constitutes more than 70% of GDP, rose by 2.2%. The consumption component saw its biggest uptick since adding 2.4% during the first quarter of 2012.

The decrease in government spending was due to a 22.2% decrease in defense spending. Looking at affected stocks, the PHLX Defense Sector Index is shedding just 0.2%. Boeing (BA 74.57, +0.92), which beat on earnings, is higher by 1.3%. However, the aircraft manufacturer issued downside full-year 2013 earnings and revenue guidance.DJ30 -12.69 NASDAQ -1.77 SP500 -2.44 NASDAQ Adv/Vol/Dec 825/619.8 mln/1499 NYSE Adv/Vol/Dec 1072/185.6 mln/1741

10:35 am : The dollar index has been in the red all morning and just hit a new session low. This helped give metals a boost, but not crude oil of natural gas.

Immediately following this morning's GDP numbers, gold and silver spiked to new session highs, while crude oil sold off, initially erasing all of its gains and falling back into negative territory.

Ahead of today's inventory data, Mar crude oil was right at the unchanged mark. Following the data, crude mostly showed a muted reaction before moved a slightly in the red. Mar crude is now

Mar natural gas is currently +0.9% at $3.29/MMBtu.

Gold and silver are still near session highs, following its rally this morning. Feb gold is now +1.2% at $16281.50/oz, while Mar silver is +2.9% at $32.10/oz. Mar copper is currently +1.5% at $3.75/lb.DJ30 -26.75 NASDAQ -8.40 SP500 -4.06 NASDAQ Adv/Vol/Dec 761/496.5 mln/1524 NYSE Adv/Vol/Dec 1036/158 mln/1760

10:00 am : The S&P 500 and Dow have slipped back into the red, while the Nasdaq continues to outperform.

The tech-heavy Nasdaq is adding 0.1% thanks in part to strong earnings from Amazon.com (AMZN 276.84, +16.49). The online merchant is surging 6.3% after its operating income of $405 million beat analyst expectations.

Elsewhere, Boeing (BA 73.97, +0.32) is higher by 0.5% after beating on earnings. However, it should be noted the company guided full-year 2013 earnings and revenue below consensus.

Cautious trade is likely to unfold ahead of the 14:15 ET release of the policy statement from the Federal Open Market Committee.DJ30 -16.63 NASDAQ +4.33 SP500 -1.11 NASDAQ Adv/Vol/Dec 836/278.1 mln/1359 NYSE Adv/Vol/Dec 1130/106.4 mln/1572

09:45 am : The major averages have climbed off their early lows. The S&P 500 is adding 0.1% while the Nasdaq is higher by 0.2% as it outperforms.

The tech-heavy index is seeing strength as Amazon.com (AMZN 279.48, +19.13) trades higher by 7.5%. Last evening, the company reported earnings which saw a stronger than expected operating income of $405 million while forecasts called for about $230 million.

This morning, the advance GDP report pointed to a 0.1% contraction during the fourth quarter. While the headline number was a disappointment, change in government spending as well as private inventories contributed to the number. The changes in the two statistics decreased the GDP reading by 1.27 percentage points and 1.33 percentage points respectively. Meanwhile, personal consumption added 1.52 percentage points, and fixed investment tacked on 1.19 percentage points.

At 14:15 ET, the Federal Open Market Committee will announce its interest rate decision and policy course. While no change is expected to the Fed Funds Rate, the policy statement will be watched for indications of any possible changes to the Fed's asset purchase program.DJ30 +9.20 NASDAQ +7.28 SP500 +1.66 NASDAQ Adv/Vol/Dec 936/160.7 mln/1187 NYSE Adv/Vol/Dec 1343/75.7 mln/1306

09:19 am : [BRIEFING.COM] S&P futures vs fair value: -0.60. Nasdaq futures vs fair value: +1.70. Heading into the open, equity futures are slightly lower with the S&P 500 futures off by 0.2%. This morning's advance fourth quarter GDP reading has done little to affect sentiment. The reported contraction of 0.1% fell short of the expected 1.0% uptick largely due to change in government spending as well as private inventories. The changes in the two statistics decreased the GDP reading by 1.27 percentage points and 1.33 percentage points respectively. Meanwhile, personal consumption added 1.52 percentage points, and fixed investment tacked on 1.19 percentage points.

Later today, the Federal Reserve will conclude its two-day meeting and issue a policy statement at 14:15 ET.

In notable earnings, Amazon.com (AMZN 284.00, +23.17) is surging 8.9% after reporting a top and bottom line miss. However, a slight improvement in company's margins as well as a strong operating income position contributed to the buying interest.

08:59 am : [BRIEFING.COM] S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: +0.70.

U.S. equity futures have lifted off their lows, but they continue to trade in the red. The S&P 500 futures are off by 0.2%.

It was a sea of green across Asia as all of the major bourses, aside from Bursa Malaysia (-0.6%), ended in positive territory. The gains were led by Japan's Nikkei (+2.3%), which climbed to its best level in 33 months after comments from the President Center for Economic Research in Japan suggested the Bank of Japan should double its asset purchases in order to achieve 2.0% inflation. Elsewhere, Hong Kong's Hang Seng hit its own 21-month high. Data from the region was limited to a South Korean industrial production miss (0.8% year-over-year actual v. 0.9% expected).

In Japan, the Nikkei gained 2.3%, posting its first close above 11,000 in nearly three years. Real estate led the way with Mitsubishi Estate tacking on 3.5%. Elsewhere, Yahoo! Japan jumped 17.1% after the company announced better than expected earnings.
Hong Kong's Hang Seng added 0.7% as growth sensitive names provided support. Port operators China Merchants Holdings and Cosco Pacific saw solid gains of 2.1% and 1.7% respectively. Shares of ICBC rebounded 0.5% after yesterday's 2.2% slide following the announcement Goldman Sachs sold a stake in the company.
In China, the Shanghai Composite settled higher by 1.0% to end at its best level in eight months. Financials posted strong gains as Agricultural Bank of China surged 3.4% and Bank of China rallied 2.6%.

European markets are registering losses, and Italy's MIB is a notable laggard as it trades lower by 2.3%. Looking at economic data, Spain reported a fourth quarter GDP contraction of 0.7%, which was worse than the downtick of 0.6% expected by the market. Italian business confidence came in at 88.2, below the 89.5 forecast by the general consensus. Elsewhere, the United Kingdom's net lending to individuals was reported at GBP1.7 billion while mortgage lending hit GBP1.0 billion. Both figures handily beat expectations. Also of note, the Eurozone business and consumer survey rose to 89.2, which was better than the generally expected reading of 88.2. Meanwhile, the consumer confidence component was reported at -24, in-line with expectations.

In news, Spanish Prime Minister Mariano Rajoy said that changing deficit targets for the sovereign would "send the wrong message." Mr. Rajoy also said he will present a stimulus package in the near future.

In Italy, the MIB is down 2.3% as Saipem weighs. The continent's largest oil company is plunging 33.3% after issuing a profit warning. Elsewhere, Banca Monte dei Paschi, which has been mired in controversy, is down 5.9%.
Germany's DAX is off by 0.3% and chemical producers are underperforming. BASF and K+S are both down near 1.0%. On the upside, ThyssenKrupp is advancing 2.3% after Bloomberg reported that ArcelorMittal and Nippon Steel made a joint bid for ThyssenKrupp's U.S. plant.
In France, the CAC is shedding 0.3%. Oil-service name Technip is slumping 6.7% as Saipem's profit warning weighs on its peers. Carmaker Renault is one of the top performers as it trades higher by 1.3%.
The United Kingdom's FTSE is lower by 0.1%. Antofagasta is slumping 7.7% after the company said it will face significant cost increases this year. In addition, Petrofac is down 6.1% following Saipem's warning.

08:32 am : [BRIEFING.COM] S&P futures vs fair value: -2.20. Nasdaq futures vs fair value: +0.50. Equity futures slipped lower in reaction to the advance fourth quarter GDP data. The S&P 500 futures are off by 0.3%.

According to today's ADP National Employment Report, employment in the nonfarm private business sector rose by 192K in January. This was above the 175K increase expected by the Briefing.com consensus. The prior month's reading was revised down to 185K from 215K.

The advance GDP growth reading for the fourth quarter suggested the economy contracted at a rate of 0.1% during the fourth quarter when an increase of 1.0% had been expected among economists polled by Briefing.com. The advance fourth quarter chain deflator reportedly increased by 0.6%, which was below the 1.6% increase that had been broadly anticipated.

08:05 am : S&P futures vs fair value: +0.20. Nasdaq futures vs fair value: +5.50.

U.S. equity futures are flat amid mixed European trade. This morning, the market awaits the 8:30 ET release of the advance fourth quarter GDP reading. The Briefing.com consensus expects the report to point to GDP growth of 1.0%. Later in the day, the Federal Open Market Committee will conclude its two-day meeting with an interest rate decision and a policy statement. While the Fed is expected to hold interest rates steady, the statement may contain hints regarding possible changes to the asset purchase program. This announcement will be made at 14:15 ET.

Looking at overseas developments:

Asian markets climbed higher. China's Shanghai Composite gained 1.0%, Hong Kong's Hang Seng added 0.7%, and Japan's Nikkei jumped 2.3%.
In economic news:
South Korea's industrial production rose by 1.0% month-over month, which was ahead of the expected 1.0% decline. Meanwhile, the year-over-year reading showed an uptick of 0.8%, which fell short of the expected 0.9% rise.
Japan's retail sales rose by 0.4% year-over-year, which was slightly better than the 0.3% increase expected by the market.
New Zealand's building consents climbed 9.4% month-over-month, ahead of the broadly expected 6.0%.
In news:
The president of the Japan Center for Economic Research suggested the Bank of Japan should double its asset purchasing program in order to achieve the 2.0% inflation target.
Taiwan plans to double the current limit for Chinese market participants who invest in Taiwanese stocks.

European markets are seeing little change as traders await the U.S. GDP data. Germany's DAX is off by 0.2%, France's CAC is shedding 0.1%, and the United Kingdom's FTSE is flat. Elsewhere, Italy's MIB is down 1.9% as it underperforms.
Looking at economic data:
Spain reported a fourth quarter GDP contraction of 0.7%, which was worse than the downtick of 0.6% expected by the market.
Italian business confidence came in at 88.2, below the 89.5 forecast by the general consensus.
The United Kingdom's net lending to individuals was reported at GBP1.7 billion while mortgage lending hit GBP1.0 billion. Both figures handily beat expectations.
The Eurozone business and consumer survey rose to 89.2, which was better than the generally expected reading of 88.2. Meanwhile, the consumer confidence component was reported at -24, in-line with expectations.
In news:
Italian stocks are underperforming as Saipem weighs on the index. Earlier, the oil company warned that its 2013 results will be well below analyst expectations. Saipem is plunging 32.1%, and the lowered forecast has sparked speculation regarding the profitability of its peers.
In Spain, Prime Minister Mariano Rajoy said that changing deficit targets for the sovereign would "send the wrong message." Mr. Rajoy also said he will present a stimulus package in the near future.

In U.S. corporate news:

Amazon.com (AMZN 283.60, +23.25) is spiking 8.9% after reporting earnings. The online merchant is seeing considerable strength despite missing on earnings and revenue. In addition, the company issued downside first quarter guidance. While the report was a disappointment on the surface, the company saw an improvement in its gross and operating margins.
Boeing (BA 74.45, +0.80) is adding 1.1%. The defense contractor beat on earnings, but also guided full-year 2013 earnings and revenue below consensus.
Chesapeake Energy (CHK 20.74, +1.77) is rising by 9.3% after the company announced that its Co-founder, Chief Executive Officer, and President Aubrey McClendon has agreed to retire.

The weekly MBA Mortgage Index declined by 8.1% to follow last week's uptick of 7.0%.

January ADP Employment Change will be reported at 8:15 ET. As mentioned earlier, fourth quarter advance GDP growth will hit the wires at 8:30 ET, and the Federal Reserve will top off the busy day of economic releases with its rate decision and policy statement scheduled for 14:15 ET.

06:44 am : [BRIEFING.COM] S&P futures vs fair value: +2.50. Nasdaq futures vs fair value: +7.00.

06:44 am : Nikkei...11113.95...+247.20...+2.30%. Hang Seng...23822.06...+166.90...+0.70%.

06:44 am : FTSE...6340.69...+1.40...0.00. DAX...7837.31...-11.30...-0.10%.

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

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