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 @ $1300.00 dollars or +13.00 points, EuroFX 6E futures @ $0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @ $0.00 dollars or +0.00 points. Total Profit @ $1300.00 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=1426

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.

Stocks Retreat At End Of Strong January


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

NEW YORK (CNNMoney)
U.S. stocks drifted lower Thursday, ending a blockbuster month on a soft note, as reports on the job market added to concerns about the economy.

The Dow Jones industrial average fell 0.3%, while the S&P 500 lost 0.2%. The Nasdaq ended little changed.

Despite the weakness, stocks have started the year with a bang.

The Dow gained 5.9% in January, making it the best performance for that month since 1994, when blue-chips rose 6%. The S&P 500 gained 5% for the month, while the Nasdaq added 4%.

Both the Dow and S&P 500 are hovering just below all-time highs, near levels not seen since 2007.

Investors have been increasingly willing to take risks, with money flowing into equity funds over the past few weeks, said Bruce McCain, chief investment strategist at Key Private Bank. But he warned that the bulls may be overlooking some troubling economic signs, and that stocks could be headed for a pullback.

"We need to be careful here in concluding that investors are not going to sober up if we continue to get weak numbers," said McCain. "Investors are feeling good and ignoring the implications of some of the more disturbing news."

@ What's behind the bull market

Early Thursday, the government reported a jump in initial jobless claims following two weeks of declines. And separately, outplacement firm Challenger, Gray & Christmas said the number of planned job cuts surged 24% to 40,430 in January.

Those figures are worrisome ahead of the all-important monthly jobs report due Friday. Analysts are expecting that employers added 180,000 jobs in January, and that the unemployment rate ticked down to 7.7% from 7.8% in December.

Meanwhile, personal income in December rose 2.6%, while spending inched up 0.2%, according to the Commerce Department. But the jump in incomes was driven mainly by Americans trying to avoid paying higher taxes in the new year, and is not expected to continue.

"This morning's data adds to our view that the economy is not accelerating," said Steven Ricchiuto, chief economist at Mizuho Securities. "Instead, it is stuck on a shallow growth trajectory."

Thursday's reports come a day after the government reported a surprise drop in economic activity during the fourth quarter, although the GDP data contained some hints of underlying improvement.

Investors were also rattled Wednesday by the latest statement from the Federal Reserve, which said economic growth had paused.

In corporate news Thursday, shares of Anheuser-Busch InBev (BUD) fell 6% after the U.S. Justice Department moved to block the beverage giant's merger with Groupo Modelo, the leading brewer in Mexico. Groupo Modelo (GPMCY) shares, which trade over the counter in the United States, were down 6%. Elsewhere in the alcohol sector, shares of Constellation Brands (STZ), which distributes Modelo-brewed beers in the U.S. market, sank nearly 19%.

Shares of UPS (UPS, Fortune 500) declined after the shipping giant's fourth-quarter earnings came in below of forecasts. The company's guidance for 2013 was also weaker than expected.

Shares of Dow Chemical (DOW, Fortune 500) also declined on an earnings miss.

Facebook (FB) shares dropped after the firm said late Wednesday that its fourth-quarter mobile user growth had slowed slightly versus the third quarter. Facebook's fourth-quarter earnings and sales beat Wall Street estimates.

Of the 200 companies in the S&P 500 that have reported earnings so far, 136 have beat analysts' estimates, according to S&P Capital IQ. Overall, earnings are expected to be up 5.1% for the quarter.

PulteGroup (PHM) reported a four-fold increase in quarterly earnings and said new orders jumped 27%. Despite the strong results, shares of Pulte fell 4%, weighing down shares of other homebuilders. Hovnanian (HOV) and Lennar (LEN) were also under pressure.

Meanwhile, shares of TRI Pointe Homes (TPH) surged 13% after the company made its debut as a public company.

@ Fear & Greed index near record high

European markets ended lower corporate earnings weighed on sentiment. Results from oil major Shell and drinks group Diageo (DEO) missed expectations, while Deutsche Bank (DB) posted a $3.5 billion quarterly loss on legal and restructuring charges. Telecoms equipment maker Ericsson bucked the trend, posting strong gains after beating expectations.

Asian markets ended mixed, with the Hang Seng slipping 0.4%.

Gold prices dropped nearly 1%, while oil was down 0.8% in the commodities market. The yield on the 10-year U.S. Treasury note fell to 1.9% from 2% on Wednesday. The U.S. dollar fell versus the euro and the British pound, but gained against the Japanese yen.




Market Update

4:15 pm : The major averages saw little change during the last session of the month. The S&P 500 shed 0.2%, while Nasdaq outperformed and ended flat.

Mixed trade unfolded amid economic data which was largely in-line with expectations. Weekly initial claims were reported at 368,000 (Briefing.com consensus 345,000), which supports the notion that the lower readings over the prior two weeks were primarily the result of seasonal adjustment problems. Today's number drives initial claims right back to the 350,000-400,000 range where they have been bounded for most of the last year.

Elsewhere, the personal income report stood out as the December increase of 2.6% was well ahead of the 0.7% rise expected by the Briefing.com consensus. However, the notable rise in personal income was due to a surge in personal income on assets as investors chose to lock in a lower capital gains tax rate ahead of the New Year.

The fourth quarter Employment Cost Index increased by 0.5%, in-line with the Briefing.com consensus.

The day's final economic report saw the January Chicago PMI climb to 55.6. The reading surprised to the upside as economists surveyed by Briefing.com had generally expected the index to come in at 50.5.

In addition to economic data, investors received several notable earnings reports. Ryder System (R 56.78, +2.52), MasterCard (MA 518.40, +2.40), and Qualcomm (QCOM 66.02, +2.49) gained between 0.5% and 4.6% after beating on earnings.

On the downside, ConocoPhillips (COP 58.00, -3.09), Dow Chemical (DOW 32.20, -2.41), and UPS (UPS 79.29, -1.94) fell short of expectations.

With January now in the books, we would like to recap the first month of 2013.

Month in Review: Equities Soar as Full Force of 'Fiscal Cliff' AvertedResponding favorably to the Congressional compromise on tax rates, the S&P 500 jumped 2.8% in the first week of 2013 and rarely looked back. Despite some mixed economic and earnings news along the way, the S&P 500 closed with a gain in 13 out of 21 sessions and ended January at 1498.27 its best level since December 2007. The Dow Jones Industrial Average for its part surged 5.8% and recorded its best January since 1989.

Economic Data Paints Bleak January Picture

The bulk of economic data reported during the month beat the Briefing.com consensus. However, data reported for the month of January often came up short.
Of the seven January reports, five fell short of expectations.
The Empire Manufacturing Index, NAHB Housing Index, Philadelphia Fed Survey, Michigan Sentiment, and Consumer Confidence reports all missed expectations.
Meanwhile, the ADP Employment Change and Chicago PMI surprised to the upside.
The advance fourth quarter GDP reading was a headline disappointment, as a 0.1% contraction was recorded for the final quarter of 2012. However, the report was not as weak as it appeared.
The biggest drag on quarterly growth came in the form of a 6.6% decrease in government spending. This was largely due to a 22.2% decline in defense spending which followed a 12.9% increase during the third quarter.
The change in private inventories also subtracted 1.27 percentage points from the change in real GDP.
Personal consumption expenditures, which constitute more than 70% of GDP, rose 2.2%, which was the largest increase since the first quarter of 2012.
Business investment rose 12.4%, which was the largest uptick since the third quarter of 2011.

Mixed Earnings Unable to Derail Rally

The second half of the month saw the start of the fourth quarter earnings season.
Most companies have beaten on the bottom line per usual, hurdling estimates that had been lowered in many cases by analysts ahead of the reports. Revenue growth is still weak, but similar to earnings, most companies have exceeded depressed top line growth estimates.
Cautious guidance has been a common theme as many companies see headwinds in the first half of the year, although the default opinion is that the second half of the year should look better.

Transports, Energy, Health Care, and Discretionary Stocks Paced the Gains

The Dow Jones Transportation Average gained 9.4% as truckers and railroads joined the rally enjoyed by airlines since mid-November.
Energy stocks also displayed relative strength and the SPDR Energy Select Sector ETF (XLE) advanced 8.3%. This was largely supported by a 6.2% rise in the price of crude oil. The energy component ended the month just a shade under $98.
The Health Care sector has been a standout, trailing behind only energy in the sector rankings on a year-to-date basis (+7.4%).
The discretionary sector has also been among the top performers in the S&P 500.
Homebuilders continued their strength from 2012. The SPDR S&P Homebuilders ETF (XHB) ended January with a gain of 8.3%. Many builders reported strong fourth quarter earnings, replete with reports of strong backlogs and order trends.

Technology Lagged as Apple Weighed

The tech-heavy Nasdaq underperformed the remaining major indices as Apple (AAPL), which is the single largest index component, continued displaying weakness.
Shares of Apple sold off through the first half of the month before pausing near the $500 level.
A disappointing January 23 earnings report caused the stock to lose more than 10%. The company fell short of revenue expectations and issued downside guidance.
The largest tech stock ended the month down 14.4%, at levels last seen in February 2002.
Excluding Apple, the technology sector fared relatively well. Semiconductors outperformed despite a rash of disappointing earnings reports and outlooks. The PHLX Semiconductor Index climbed 7.7%.

Defensive Stocks Bid into Second Half

During the second half of the month, defensive-oriented sectors started to attract increased buying interest.
Telecoms (+1.8%) and utilities (+4.5%) registered the bulk of their gains during the second half of the month after the broader market had already seen the majority of its rise.
Health care stocks enjoyed strength throughout the month as upbeat earnings supported the space.

Headwinds Remain as S&P 500 Nears Uncharted Territory

As the S&P 500 hovers just 4.3% below its all-time high, challenges remain visible.
A notable drop in consumer confidence occurred as the initial impact of the payroll tax cut expiration was felt by income earners.
Sequester cuts are scheduled to go into effect in March, with the brunt of the impact to be absorbed by the defense sector.
The debt ceiling issue has only been deferred rather than fixed.
Japan's bold bid to weaken its currency and to inflate its economy is raising the risk of currency wars as other countries aim to support their exporters.
Geopolitical issues are simmering, with conflicts in the Middle East starting to make headline waves (eg. Egypt, Israel/Syria/Iran) and North Korea toying with nuclear tests.
Rising interest rates threaten to slow the housing recovery.
Bullish sentiment, which is a contrarian indicator, is picking up noticeably.

DJ30 -49.84 NASDAQ -0.18 SP500 -3.85 NASDAQ Adv/Vol/Dec 1525/2.11 bln/946 NYSE Adv/Vol/Dec 1557/933.2 mln/1421

3:30 pm :

Mar crude oil spent its entire floor session in negative territory as mixed economic data released this morning that included weekly initial claims and the personal income report weighed on prices. The energy component dropped to a session low of $96.84 per barrel in early morning action but inched higher for the remainder of the session. It managed to trim its loss to 0.4% as it closed at $97.52 per barrel, slightly below its session high of $97.65 per barrel.
Mar natural gas slid to a floor session low of $3.24 per MMBtu on inventory data that showed a draw of 194 bcf when a draw of 205 to 206 bcf ws anticipated. However, buyers stepped in and pushed prices into positive territory and to a session high of $3.39 per MMBtu. Natural gas eventually settled the session unchanged at $3.34 per MMBtu.
Apr gold retreated from its session high of $1678.50 and fell deeper into negative territory on the economic data. It settled 1.2% lower at $1661.80 per ounce, or slightly above its session low of $1658.40 per ounce.
Mar silver also extended overnight losses, falling as low as $31.12 per ounce in early afternoon pit trade. It eventually closed at $31.36 per ounce, or 2.5% lower.

DJ30 -32.49 NASDAQ -0.59 SP500 -2.66 NASDAQ Adv/Vol/Dec 1434/1701.6 mln/1034 NYSE Adv/Vol/Dec 1501/471 mln/1442

3:00 pm : The major averages continue to show little change as the final hour of trade begins. The S&P 500 has recently crossed into positive territory after trading in the red for the vast majority of the session.

Mixed earnings are contributing to the indecision displayed by the market. While technology bellwether Qualcomm (QCOM 66.39, +2.86) beat on earnings, UPS (UPS 79.53, -1.70), which serves as a broader economic gauge, fell short of analyst expectations.

Among notable upcoming earnings, Chevron (CVX 116.17, -0.28), Exxon Mobil (XOM 90.09, -0.58), and Merck (MRK 43.48, -0.02) will report ahead of tomorrow's open.DJ30 -21.00 NASDAQ +3.28 SP500 -1.28 NASDAQ Adv/Vol/Dec 1478/1.56 bln/981 NYSE Adv/Vol/Dec 1553/428.1 mln/1382

2:30 pm : Cautious trade continues as the three major averages trade near the middle of their respective ranges. The term "mixed" encapsulates today's action as the key indices trade in mixed fashion amid mixed earnings and mixed economic data.

The S&P 500 is shedding 0.1% while Nasdaq is adding 0.1%. The tech-heavy index is hovering in positive territory as earnings-driven gains from Skyworks (SWKS 24.27, +2.71), MasterCard (MA 517.10, +1.11), and Qualcomm (QCOM 66.28, +2.75) support the index.

On the downside, Dow Chemical (DOW 32.49, -2.12) and UPS (UPS 79.45, -1.78) are seeing respective losses of 6.2% and 2.2% after the two reported disappointing earnings.

In economic data, weekly initial claims were reported at 368,000, which supports the notion that the lower readings over the prior two weeks were primarily the result of seasonal adjustment problems. Today's number drives initial claims right back to the 350,000-400,000 range where they have been bounded for most of the last year.

Meanwhile, the personal income report stood out as the December increase of 2.6% was well ahead of the 0.7% rise expected by the Briefing.com consensus. However, the jump was due to a surge in personal income on assets as investors chose to lock in a lower capital gains tax rate ahead of the New Year.DJ30 -20.47 NASDAQ +4.30 SP500 -1.05 NASDAQ Adv/Vol/Dec 1481/1.43 bln/938 NYSE Adv/Vol/Dec 1593/390.2 mln/1342

2:05 pm : The major averages continue to trade in range bound fashion. The Nasdaq has displayed relative strength all day, and the index is currently adding 0.1%.

The tech-heavy index is benefitting from upbeat earnings from a handful of notable components.

Qualcomm (QCOM 66.42, +2.89) is firmer by 4.6% after its top and bottom line beat was combined with optimistic second quarter earnings guidance.

Elsewhere, Skyworks (SWKS 24.42, +2.86) is spiking 13.2% following an in-line earnings report. Additionally, Skyworks guided its second quarter revenue ahead of analyst expectations.

Lastly, MasterCard (MA 517.93, +1.93) is adding 0.3% after its bottom line surprised to the upside.DJ30 -14.00 NASDAQ +4.48 SP500 -0.97 NASDAQ Adv/Vol/Dec 1459/1.35 bln/945 NYSE Adv/Vol/Dec 1612/362.2 mln/1310

1:30 pm : Equities are holding recent levels as quiet afternoon trade continues. The key averages are all trading within points of their respective unchanged levels.

Notably, the Dow Jones Transportation Average is adding 0.4% after yesterday's session saw the bellwether complex slide 1.5% amid broad weakness. Today, the sector is benefitting from upbeat earnings from two components. Ryder System (R 56.25, +1.99) is adding 3.7% after the freight carrier beat on earnings and revenue. In addition, Ryder guided first quarter earnings and revenue above consensus.

Elsewhere, Shipper Kirby (KEX 70.65, +4.16) is surging 6.2% after the company eclipsed its Capital IQ earnings and revenue estimates. Peer Matson (MATX 27.45, +0.65) is rising 2.4%.

On the downside, UPS (UPS 79.52, -1.70) is underperforming after missing on earnings and guiding full-year 2013 earnings below consensus.DJ30 -17.70 NASDAQ +2.65 SP500 -1.54 NASDAQ Adv/Vol/Dec 1468/1.26 bln/940 NYSE Adv/Vol/Dec 1561/336.3 mln/1335

1:00 pm : The major averages began the day on a mixed note with the market receiving several economic data points as well as earnings from several notable companies. For the most part, the data was mixed, which received a cautious response from the market. In addition, having rallied more than 5.0% since the start of the year, the S&P 500 is taking a breather as January draws to a close. The benchmark index is off by 0.1%. Meanwhile, the Nasdaq is adding 0.1% as it outperforms.

In today's economic data, weekly initial claims were reported at 368,000 (Briefing.com consensus 345,000). This figure supports the notion that the lower readings over the prior two weeks were primarily the result of seasonal adjustment problems. Today's number drives initial claims right back to the 350,000-400,000 range where they have been bounded for most of the last year.

Elsewhere, the personal income report stood out as the December increase of 2.6% was well ahead of the 0.7% rise expected by the Briefing.com consensus. However, the notable rise in personal income was due to a surge in personal income on assets as investors chose to lock in a lower capital gains tax rate ahead of the New Year.

Today's January Chicago PMI, which came in at 55.6, sent stocks to their early session highs, but the strength was short-lived.

Quarterly earnings reported by major companies are also receiving mixed reaction. Nasdaq components, Qualcomm (QCOM 66.66, +3.13) and MasterCard (MA 517.58, -1.58), beat their respective Capital IQ consensus estimates, and the stocks are climbing in reaction. Qualcomm is rising 4.9% while MasterCard is adding 0.3%.

Among earnings disappointments, ConocoPhillips (COP 58.53, -2.56) and UPS (UPS 79.50, -1.73) are seeing respective losses of 4.2% and 2.1%. Both names missed on the bottom line and UPS issued cautious full-year 2013 earnings guidance.

In news, Anheuser-Busch (BUD 88.58, -5.56) and Constellation Brands (STZ 32.04, -7.13) fell to their respective lows after reports indicated Anheuser-Busch is facing a regulatory challenge over the company's proposed acquisition of Grupo Modelo. This news impacts Constellation Brands because the company is attempting to carry out an acquisition contingent on Anheuser-Bush receiving approval to take control of Grupo Modelo.DJ30 -15.98 NASDAQ +4.77 SP500 -1.15 NASDAQ Adv/Vol/Dec 1449/1.14 bln/950 NYSE Adv/Vol/Dec 1559/307.8 mln/1327

12:30 pm : Equities are attempting to lift off their session lows. The S&P 500 and Dow are off by 0.2% each. Meanwhile, the Nasdaq is flat as it outperforms. The tech-heavy index is receiving some support from Qualcomm (QCOM 66.53, +3.00), which trades higher by 4.7% after beating on earnings and revenue. In addition, the company's guidance was cheered by investors.

On the downside, discretionary stocks are pressuring the market as homebuilders weigh. PulteGroup (PHM 20.37, -0.68) beat on earnings and revenue, but its stock trades lower by 3.3%. PulteGroup, as well as other major homebuilders, rallied notably into its reporting period, thus strong earnings were likely priced-in.DJ30 -27.40 NASDAQ -0.41 SP500 -2.97 NASDAQ Adv/Vol/Dec 1341/1.06 bln/1039 NYSE Adv/Vol/Dec 1439/288.8 mln/1428

12:00 pm : The major averages continue to hover near their respective lows, but their losses remain limited in scope. The S&P 500 is shedding 0.3%, and is the worst performing index.

After welcoming 2013 with a broad market rally, the key indices are becoming more cautious as February nears. Recent sessions have seen some sector rotation with defensive-oriented spaces receiving increased interest. Today, the telecom space is outperforming.

On the downside, the discretionary sector is exerting some pressure on the broader market. Homebuilders are seeing broad weakness as the SPDR Homebuilders ETF (XHB 28.59, -0.23) trades lower by 0.8%.DJ30 -32.20 NASDAQ -0.78 SP500 -3.62 NASDAQ Adv/Vol/Dec 1298/954.1 mln/1064 NYSE Adv/Vol/Dec 1370/265.4 mln/1493

11:30 am : Recent trade has seen the major averages slip to their respective lows. The S&P 500 is off by 0.3% as technology, energy, and industrials led the decline. Meanwhile, the defensive-oriented telecom sector is outperforming.

Today's earnings painted a mixed picture. Shares of Qualcomm (QCOM 66.46, +2.93) are climbing 4.6% after the networking company beat on earnings and revenue. Elsewhere, Ryder System (R 56.23, +1.97) is advancing 3.6% after it too beat the Capital IQ earnings and revenue estimates.

Looking at names underperforming in the wake of disappointing earnings, UPS (UPS 79.61, -1.62) is shedding 2.0% following cautious guidance. In the energy sector, ConocoPhillips (COP 58.20, -2.89) is slumping 4.7% after missing on earnings.DJ30 -21.43 NASDAQ -1.15 SP500 -3.00 NASDAQ Adv/Vol/Dec 1321/812.1 mln/1020 NYSE Adv/Vol/Dec 1367/226.5 mln/1436

11:05 am : The S&P 500 and Dow are hovering near their respective unchanged lines. Meanwhile, the Nasdaq is adding 0.2% as it outperforms. The tech-heavy index is outperforming after Qualcomm (QCOM 66.59, +3.06) beat on earnings and revenue. In addition, the networking company guided second quarter earnings ahead of consensus expectations.

In recent news, Anheuser-Busch (BUD 88.41, -5.73) and Constellation Brands (STZ 31.16, -8.01) fell to their respective lows after reports indicated Anheuser-Busch is facing a regulatory challenge over the company's proposed acquisition of Grupo Modelo.

The news of the challenge impacts Constellation Brands because the company is attempting to carry out an acquisition contingent on Anheuser-Bush receiving approval to take control of Grupo Modelo.DJ30 -13.86 NASDAQ +1.75 SP500 -2.75 NASDAQ Adv/Vol/Dec 1361/705.3 mln/953 NYSE Adv/Vol/Dec 1412/200.0 mln/1389

10:30 am : Commodities are mixed this morning with precious metals, crude oil and copper all in the red.

Natural gas was around the unchanged line ahead of inventory data. However, the EIA reported a draw of 194 bcf vs expectations for a draw of 205 to 206 bcf, which caused natural gas futures to drop to new session lows. Mar nat gas fell fell about eight cents to a new LoD of $3.25/MMBtu and is now -2.7% at $3.25/MMBtu.

Earlier this morning, crude oil began to extend losses and when floor trading began, crude really dropped lower, falling below the $97 mark... crude has been in the red all morning. In current action, Mar crude oil is -0.7% at $97.26/barrel.

Precious metals have been in negative territory all session and extended losses following the PMI data, falling to new session lows. Apr gold is now -1.0% at $1664.40/oz and Mar silver is -1.7% at $31.65/oz. Mar copper is now -0.2% at $3.74/lb.DJ30 +13.82 NASDAQ +8.75 SP500 -0.51 NASDAQ Adv/Vol/Dec 1379/556.5 mln/861 NYSE Adv/Vol/Dec 1447/163 mln/1298

10:00 am : The key indices are holding near their early highs with the S&P 500 up 0.1%. Though the major averages saw slim losses at the start, an upbeat Chicago PMI reading of 55.6 contributed to the early bid. Today's remaining economic data was generally mixed.

Initial claims for the week ending January 26 increased to 368,000 (Briefing.com consensus 345,000). This figure supports the notion that the lower readings over the prior two weeks were primarily the result of seasonal adjustment problems. Today's number drives initial claims right back to the 350,000-400,000 range where they have been bounded for most of the last year.

On the earnings front, shares of Qualcomm (QCOM 67.17, +3.64) and Ryder System (R 56.85, +2.59) have responded favorably to bottom line beats. Meanwhile, Dow Chemical (DOW 33.00, -1.61) and UPS (UPS 80.23, -1.00) are seeing respective losses of 4.7% and 1.3% after the two fell short of analyst expectations. Economic bellwether UPS also said holiday shopping was slightly below the company's initial estimates.DJ30 +23.38 NASDAQ +9.47 SP500 +1.09 NASDAQ Adv/Vol/Dec 1235/330.1 mln/897 NYSE Adv/Vol/Dec 1345/109.4 mln/1328

09:45 am : The major averages have lifted off their lows following the release of the January Chicago PMI. The S&P 500 is adding 0.1%.

Equities begin the day amid mixed economic data. The personal income report stood out as the December increase of 2.6% was well ahead of the 0.7% rise expected by the Briefing.com consensus. However, the notable rise in personal income was due to a surge in personal income on assets as investors chose to lock in a lower capital gains tax rate ahead of the New Year.

In addition, the market is reacting to mixed earnings from several notable names. Qualcomm (QCOM 67.02, +3.48) and MasterCard (MA 527.03, +11.03) are trading higher after the two companies beat their respective Capital IQ consensus estimates. On the downside, Dow Chemical (DOW 32.46, -2.13) and UPS (UPS 79.80, -1.43) are slipping following bottom line misses.

This month's final economic data point was just reported as the January Chicago PMI reading of 55.6 surprised to the upside. Economists surveyed by Briefing.com had generally expected a reading of 50.5 to follow the prior month's revised reading of 50.0.DJ30 +18.58 NASDAQ +10.06 SP500 +0.97 NASDAQ Adv/Vol/Dec 1185/243.4 mln/900 NYSE Adv/Vol/Dec 1360/86.9 mln/1268

09:17 am : [BRIEFING.COM] S&P futures vs fair value: -1.40. Nasdaq futures vs fair value: -1.80. Heading into the open, equity futures are pointing to a mixed start. The S&P 500 futures are flat, while futures on the Nasdaq are off by 0.2%.

The major averages are poised for a cautious start after today's economic data was generally in-line with expectations. In addition, earnings have painted a mixed picture this morning.

Bellwether UPS (UPS 79.45, -1.78) is slumping 2.2% after the courier service issued downside full-year 2013 earnings guidance.

On the upside, Qualcomm (QCOM 67.66, +4.13) is surging 6.5% following an upbeat report coupled with upside second quarter earnings guidance.

January Chicago PMI will cross the wires at 9:45 ET.

09:03 am : [BRIEFING.COM] S&P futures vs fair value: -2.10. Nasdaq futures vs fair value: -5.30.

The S&P 500 futures are flat after rising off their pre-market lows.

The major Asian bourses ended mostly lower, taking their cues from yesterday's post-FOMC selloff on Wall Street. Japan's Nikkei (+0.2%) was once again a leader while Australia's ASX (-0.4%) snapped its 10-day winning streak. Data from the region was heavy with Australia's HIA New Home Sales jumping 6.2% month-over-month (3.0% previous) while its private sector credit (0.4% month-over-month actual v. 0.2% expected) beat and import prices (0.3% quarter-over-quarter actual v. 0.5% expected) missed. Elsewhere, Japan's average cash earnings (-1.4% year-over-year actual v. 1.1% expected) fell short of expectations while GDP in both Taiwan (3.4% year-over-year actual v. 3.1% expected) and the Philippines (6.8% year-over-year actual v. 6.4% expected) topped estimates. Finally, Singapore's unemployment rate edged down to 1.8% (2.0% expected, 1.9% previous) and Thailand's trade surplus narrowed to $0.3 billion ($0.6 billion expected).

In Japan, the Nikkei added 0.2% as financials continued their recent outperformance. Sumitomo Financial surged 5.2% after posting impressive quarterly results. Elsewhere, telecom provider Softbank climbed 2.7% ahead of its quarterly results.
Hong Kong's Hang Seng slipped 0.4%, but was still able to register its fifth straight month of gains. PC maker Lenovo Group shed 2.8% despite posting better than expected earnings.
In China, the Shanghai Composite gained 0.1% as shares ended with their seventh week of gains in the past nine. Brokerage shares rallied for a fourth session with Haitong Securities and China Merchants Securities both tacking on close to 0.5%.

European indices are broadly lower as midday nears. Looking at notable economic data points, Germany's retail sales slid 1.7% month-over-month, well below the broadly expected downtick of 0.1%. Meanwhile the year-over-year reading declined by 4.7%, while the market expected a decline of 1.6%. Lastly, the country's unemployment rate improved to 6.8% from 6.9%. This occurred on the back of an unemployment change of -16K, which was ahead of the expected increase of 8K. The United Kingdom's nationwide HPI rose 0.5% month-over-month, ahead of the expected 0.2% uptick. French consumer spending saw no change month-over-month, while expectations called for a rise of 0.2%. Meanwhile, the country's PPI slipped 0.3%, which was cooler than the 0.2% decrease expected by the market. Spanish business confidence was reported at -18, worse than the -15 expected by the consensus.

In news, Spain's El Pais reported that Prime Minister Mariano Rajoy has withdrawn up to EUR250,000 from his party's "secret account." The first withdrawals dated back to 1997 when Mr. Rajoy was the party's Deputy Secretary General. The prime minister has since come out to deny any wrongdoing. Elsewhere, the United Kingdom's Financial Services Authority has short selling of Saipem after the company's shares plunged over 34% during yesterday's trade. The drop resulted from the company issuing a profit warning.

Germany's DAX is lower by 0.5% as exporters weigh. BMW and Daimler are down 1.6% and 1.9% respectively. On the upside, Infineon Technologies is adding 5.2% after the company said it expects to see an improvement in semiconductor demand.
The United Kingdom's FTSE is shedding 0.6%. AstraZeneca is down 4.6% after the company's guidance disappointed investors. Meanwhile, distiller Diageo is higher by 2.2% after reporting strong earnings.
France's CAC is off by 0.8% with financials underperforming. Credit Agricole and Societe Generale are seeing respective losses of 2.1% and 1.2%. STMicroelectronics is rising 2.7% after announcing plans to exit its unprofitable joint venture with Ericsson.
Spain's IBEX 35 is sliding 2.3% as 34 components trade in the red. Banco Santander is down 3.2% after the bank's operating income fell well short of analyst expectations.
In Italy, the MIB is shedding 0.4% as it outperforms other regional indices. Saipem, which fell 34% yesterday after issuing a profit warning, is rallying 3.3%. Additionally, Banca Monte dei Paschi, which has been mired in controversy, is trading flat.

08:36 am : [BRIEFING.COM] S&P futures vs fair value: -3.20. Nasdaq futures vs fair value: -5.80. Equity futures are trading near their pre-market lows following the release of several economic data points. The S&P 500 futures are off by 0.1%.

The latest weekly initial jobless claims count totaled 368,000, which was higher than the 345,000 that had been expected by the Briefing.com consensus. The tally was above the revised prior week count of 335,000. As for continuing claims, they rose to 3.197 million from 3.175 million.

Personal income rose 2.6% in December, which was above the 0.7% increase expected by the Briefing.com consensus. Personal spending increased by 0.2%, which fell short of the expected uptick of 0.3%. Core personal consumption expenditures were unchanged, which fell short of the broadly expected rise of 0.1%.

The fourth quarter Employment Cost Index increased by 0.5%, in-line with the Briefing.com consensus. Today's reading follows the prior quarter's increase of 0.4%.

08:02 am : [BRIEFING.COM] S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -4.00.

U.S. equity futures are seeing little change amid downbeat European trade. The S&P 500 futures are flat with five economic data points scheduled for an 8:30 ET release.

Looking at overseas developments:

Asian markets ended mixed. China's Shanghai Composite added 0.1%, Japan's Nikkei gained 0.2% while Hong Kong's Hang Seng slipped 0.4%.
In economic data:
Japan's manufacturing PMI of 47.7 climbed from the prior month's reading of 45.0. Meanwhile, industrial production rose by 2.5% month-over-month, while growth of 4.5% was expected by the market. Also of note, average cash earnings declined by 1.4% year-over-year, which was worse than the generally expected 1.1% increase.
The Reserve Bank of New Zealand held its key interest rate unchanged at 2.50%, as expected.
Hong Kong's retail sales rose 8.8% year-over-year, while an increase of 7.3% was broadly expected.
Looking at news:
The Chinese press reported the country's Securities Regulatory Commission may hike leverage ratios in its new risk control rules for brokerages.

European indices are registering losses. Germany's DAX is lower by 0.4%, the United Kingdom's FTSE is off by 0.6%, and France's CAC is down 0.9%.
Looking at notable economic data points:
Germany's retail sales slid 1.7% month-over-month, well below the broadly expected downtick of 0.1%. Meanwhile the year-over-year reading declined by 4.7%, while the market expected a decline of 1.6%. Lastly, the country's unemployment rate improved to 6.8% from 6.9%. This occurred on the back of an unemployment change of -16K, which was ahead of the expected increase of 8K.
The United Kingdom's nationwide HPI rose 0.5% month-over-month, ahead of the expected 0.2% uptick.
French consumer spending saw no change month-over-month, while expectations called for a rise of 0.2%. Meanwhile, the country's PPI slipped 0.3%, which was cooler than the 0.2% decrease expected by the market.
Spanish business confidence was reported at -18, worse than the -15 expected by the consensus.
In news:
Spain's El Pais reported that Prime Minister Mariano Rajoy has withdrawn up to EUR250,000 from his party's "secret account." The first withdrawals dated back to 1997 when Mr. Rajoy was the party's Deputy Secretary General.
The United Kingdom's Financial Services Authority has short selling of Saipem after the company's shares plunged over 34% during yesterday's trade. The drop resulted from the company issuing a profit warning.

In U.S. corporate news:

JDS Uniphase (JDSU 14.17, +1.77) is spiking 14.3% after the company beat on earnings and revenue. In addition, the communications company guided its third quarter revenue in-line with analyst expectations.
Qualcomm (QCOM 67.35, +3.82) is rising 6.0% after reporting strong earnings. The tech bellwether beat the Capital IQ earnings forecast by $0.14. In addition, Qualcomm's revenue also beat expectations.
UPS (UPS 79.93, -1.30) is slipping 1.6% after the logistics company reported mixed earnings. In addition, UPS guided full-year 2013 earnings below analyst expectations.

January Challenger Job Cuts declined 24.4% year-over-year to follow last month's 22.1% decrease.

At 8:30 ET, 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.

06:50 am : [BRIEFING.COM] S&P futures vs fair value: -3.50. Nasdaq futures vs fair value: -7.00.

06:49 am : Nikkei...11138.66...+24.70...+0.20%. Hang Seng...23729.53...-92.50...-0.40%.

06:49 am : FTSE...6287.61...-35.50...-0.50%. DAX...7769.91...-41.40...-0.50%.

06:49 am : [BRIEFING.COM] S&P futures vs fair value: +1493.50. Nasdaq futures vs fair value: +2726.00.

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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