TheStrategyLab.com Price Action Trading Support Forum

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


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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ ($2,870.00) dollars or -28.70 points, Emini ES ($ES_F) futures @ ($2,812.50 dollars or -56.25 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Loss @ $5,682.50 dollars.

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

In addition, all of my trades were posted real-time in the chat room. You can read today's chat room logs for details about each one of my trades via price action trading from entry to exit (e.g. time, price, contract size) along with price action commentary as the trade traversed to its completion...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=126&t=1703

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

##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) my thought process from trade to trade so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell. If you join the chat room and then you do not ask any questions about WRB Analysis in your own trading...the chat room will not be useful to you. Chat room access instructions @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

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

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

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=229&t=2165

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Market Context Summaries

The below summaries by Bloomberg, CNNMoney, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/BOE/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action in many trading instruments I monitor during the trading day. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events, intermarket analysis (e.g. Forex EurUsd, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index futures) while using WRB Analysis from one trade to the next trade to give me the market context for price action trading before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trade decisions (day trading, swing trading, position trading)...something I can not get from my broker statements alone.

Dow Slips Again As IBM Shares Slide


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

NEW YORK (CNNMoney)
Investors remained in a cautious mood Wednesday following another mixed batch of earnings reports.

The Dow ended lower for a second day in a row, as a disappointing outlook from IBM (IBM, Fortune 500) weighed on the blue chip index. IBM shares declined more than 3%. But the S&P 500 and Nasdaq managed to end with small gains. So did CNNMoney's new Tech 30 index.

StockTwits user and Estimize founder LDrogen noted that there were some bright spots in IBM's earnings, and improvement could be around the corner.

"$IBM Smarter Planet revs up 20%, Cloud services revs up 69%, future is very bright once they get through the transition," he said.

But others were skeptical -- and one made a joke about IBM's supercomputer ... and "Jeopardy" champion.

"You think @WarrenBuffett is buying more $IBM right now?" asked DividendBuddy. "@IBMWatson says, "What is I don't think so." Bearish."

Warren Buffett's Berkshire Hathaway (BRKA, Fortune 500) has a 6% stake in IBM, making it Big Blue's largest shareholder.

After the closing bell, shares of eBay (EBAY, Fortune 500) surged 8% after the online auction site barely beat earnings estimates and disclosed that activist investor Carl Icahn submitted a proposal to spin off PayPal.

EBay said that Icahn acquired a stake in the company earlier this month and planned to put two of his employees on its board of directors.

Also after the bell, Netflix (NFLX) delivered better-than-expected fourth quarter earnings and sales. The company also gave solid guidance for the first quarter of 2014, sending shares up more than 15% in after-hours trading.

Shares of Advanced Micro Devices (AMD, Fortune 500) tumbled after the company's guidance for the current quarter fell short of expectations. It's the latest bit of bad news for semiconductor stocks following last week's earnings from Intel (INTC, Fortune 500) and the news that Intel was planning to cut jobs this year.

Coach (COH) shares also fell after the luxury retailer's earnings and sales came in below expectations.

Overall, earnings are expected to be up 5.9% in the fourth quarter for the companies in the S&P 500, according to FactSet Research.

On the bright side, BlackBerry (BBRY) shares surged again after the smartphone maker said it was unloading the majority of its Canadian real estate assets. BlackBerry is the top performer in the Tech 30. Shares have been rising as investors bet that new CEO John Chen will help put the company back on track.

"$BBRY very hard to watch BB going up weekly," said StockTwits trader brandon123. "I had to dip my toes in it. Everyone roots for the underdog. Chen making great decisions. Bullish."

Trader duke2duke added that BlackBerry may also be starting to attract attention from hedge funds.

"$BBRY This bullish move is not without reasons," he said. "This stock is undervalued and HFs are seeing that now. Bullish."

Priceline (PCLN, Fortune 500) shares continued to trade above $1,200 per share, after hitting the milestone for the first time Tuesday. Priceline has the highest stock price of any company in the S&P 500. Google (GOOG, Fortune 500) is trailing it with a price of around $1,165.

Also on the tech front, Apple (AAPL, Fortune 500) shares rose after Carl Icahn said he has increased his stake in the company by $500 million to total $3 billion, reiterating that the investment is a "no brainer."

But the gain was modest, especially compared to previous times Icahn has announced his stake in Apple.

"$AAPL Looks like Icahn is not the market mover he was," noticed RobertinGatos. "Posturing does have its limits. Doesn't matter, Apple's earnings rule after Monday."

Apple will report its latest quarterly results on January 27.

And StockTwits trader FirstMileMD said he doesn't care for Icahn or his push for the company to buy back an additional $150 billion of its own stock.

"$AAPL I own the company but not because of Icahn," he said. "I will vote against his proposal. Apple knows what's best for Apple."

Stocks have been off to a rocky start in 2014 while bonds have actually outperformed. After last year's big rally, investors are looking for signs the economy will be strong enough to keep the bull market going. But with little economic data on the agenda this week, investors have turned their attention to earnings from big U.S. corporations.





4:10 pm: [BRIEFING.COM] Equities endured an uninspiring Wednesday session, which unfolded in similar fashion to Tuesday's affair. Like yesterday, the major averages ended mixed with the Dow Jones Industrial Average (-0.3%) coming out on the losing end while the Nasdaq (+0.4%) and S&P 500 (+0.1%) eked out modest gains.

The price-weighted Dow spent the entire session in the red as 19 of its 30 components registered losses. Most notably, the second-largest index member, IBM (IBM 182.25, -6.18), plunged 3.3% after beating its Capital IQ earnings estimate by 13 cents on below-consensus revenue. Despite the bottom-line beat, the report was scrutinized due to the company accounting for a lower tax rate than in previous quarters.

On the upside, another large index member, United Technologies (UTX 116.12, +1.13), gained 1.0% after reporting a bottom-line beat on below-consensus revenue. Furthermore, the stock factored into the outperformance of the industrial sector (+0.2%), which also drew strength from transports. The Dow Jones Transportation Average jumped 1.1% with help from railroads after Norfolk Southern (NSC 92.94, +4.23) reported an earnings beat.

Like industrials, most other cyclical sectors finished just ahead of the broader market. The discretionary sector (+0.3%) rallied despite cautious action among retailers after Coach (COH 49.38, -3.17) reported disappointing earnings and said its North American comparable-store sales tumbled 13.6% during the quarter.

Elsewhere, energy (+0.3%) climbed as crude oil rose 1.8% to $96.72/bbl while materials (-0.9%) lagged after Freeport-McMoRan (FCX 34.52, -0.74) reported a top-line miss.

The remaining cyclical groups, financials (+0.1%) and technology (unch) ended little changed.

On the countercyclical side, health care (+0.1%) and utilities (+0.1%) finished in-line with the S&P 500 while consumer staples (-0.1%) and telecom services (-0.7%) ended in the red.

Treasuries finished in the red as the 10-yr yield ticked up three basis points to 2.86%. Trading volume was well below average with only 616 million shares changing hands at the NYSE.

Today's economic data was limited to the weekly MBA Mortgage Index, which rose 4.7% to follow last week's 11.9% increase.

Tomorrow, weekly initial claims will be reported at 8:30 ET while the November FHFA Housing Price Index will be released at 9:00 ET. December Existing Home Sales and Leading Indicators will cross the wires at 10:00 ET.

Nasdaq Composite +1.6% YTD
Russell 2000 +1.6% YTD
S&P 500 -0.2% YTD
Dow Jones Industrial Average -1.2% YTD

3:30 pm: [BRIEFING.COM]

Mar crude oil rose for a third consecutive session ahead of tomorrow's release of weekly inventory data. Prices lifted from a session low of $95.64 per barrel and continued to trend higher for the remainder of floor trade. The energy component eventually settled at $96.72 per barrel, or 1.8% higher.
Feb natural gas extended yesterday's gains as it gained strength on a strong Northeast winter storm accompanied by cold temperatures. It trended higher after coming off its session low of $4.57 per MMBtu and settled with a solid 5.9% at $4.69 per MMBtu. Action in precious metals was lackluster today.
Feb gold extended yesterday's losses as the dollar index recovered into positive territory. The yellow metal retreated from its session high of $1242.70 per ounce set moments after pit trade opened and settled 0.2% lower at $1238.60 per ounce.
Mar silver oscillated between positive and negative territory, with prices dipping to a session low of $19.83 per ounce. Unable to gain momentum, it settled with a 0.1% loss at $19.84 per ounce.

3:00 pm: [BRIEFING.COM] The S&P 500 trades flat with one hour remaining in today's session. Today's affair has not generated much excitement as the benchmark index spent the entire trading day inside of a five-point range.

Elsewhere, the Nasdaq (+0.4%) hovers just below its session high as chipmakers contribute to the outperformance. The PHLX Semiconductor Index is higher by 1.1% even as the largest index component, Intel (INTC 25.34, -0.25), trades lower by 1.0%.

2:30 pm: [BRIEFING.COM] Not much has changed since our last update as the major averages remain inside narrow ranges. With the fourth quarter earnings season heating up, participants will receive roughly 35 earnings reports following today's close.

A handful of tech companies appear on this afternoon's schedule with eBay (EBAY 54.24, +0.09), F5 Networks (FFIV 97.82, -0.39), SanDisk (SNDK 71.99, +0.10), and Western Digital (WDC 88.41, -0.45) all set to report their results after the bell. The top S&P 500 component of 2013, Netflix (NFLX 332.72, +4.02), is also scheduled to release its earnings this evening.

Tomorrow morning, AmerisourceBergen (ABC 70.13, -0.39), Lockheed Martin (LMT 156.90, +2.80), and McDonald's (MCD 94.95, -0.13) will be among those reporting their results.

2:00 pm: [BRIEFING.COM] Choppy action continues with the S&P 500 back below its flat line. Although the index staged a late morning/early afternoon recovery off its lows, it hasn't been able to extend the rebound past its opening high.

In large part, today's range-bound trade results from a lack of defined sector leadership. Outside of the two smallest S&P 500 sectors-materials (-1.0%) and telecom services (-0.7%)-the remaining eight groups are essentially flat.

With stocks trading mixed, participants are showing some interest in downside protection. The CBOE Volatility Index (VIX 12.99, +0.12) is on track to register its third consecutive gain.

1:25 pm: [BRIEFING.COM] So far, today's trading looks a lot like yesterday's trading. Pinned down by weakness in a high-priced issue, namely IBM (IBM), the Dow Jones Industrial Average is underwater; meanwhile, the S&P 500 is treading water. The Nasdaq and the Russell 2000 are outperforming with 0.4% gains.

In terms of the S&P 500, it has also followed yesterday's trading pattern of seeing its best levels early, selling off, and then getting back into recovery mode. It is currently testing its best level of the day which, for the record, leaves it just below its 2013 closing high.

The market may feel like it is doing badly in 2014, but in truth it simply isn't doing anything. The latter disposition has been a point of frustration for some and there is a budding sense that an inflection point is due to be reached soon.

Netflix (NFLX 331.85, +3.14), which reports after the close today, carries the potential to be the spark that fuels a breakout, or a breakdown, in the S&P 500 given its outstanding performance in 2013 (+298%) and the valuation concerns that followed its stock higher -- concerns that also hang over the broader market.

1:00 pm: [BRIEFING.COM] At midday, the major averages trade in mixed fashion after enduring a sloppy start to the session. The Nasdaq (+0.4%), S&P 500 (+0.1%), and Russell 2000 (+0.5%) hover in positive territory while the Dow Jones Industrial Average (-0.2%) has yet to climb out of the red.

The price-weighted Dow lags as 21 of its 30 components register losses. However, out of the 21 decliners, only three display losses larger than 1.0%. Notably, the second-largest index member, IBM (IBM 181.74, -6.69), holds a loss of 3.5% after beating its Capital IQ earnings estimate by 13 cents on below-consensus revenue. Despite the bottom-line beat, the report has been scrutinized due to the company accounting for a lower tax rate than in previous quarters.

On the upside, another large index member, United Technologies (UTX 116.02, +1.03) trades higher by 0.9% after it too reported a bottom-line beat on below-consensus revenue.

Staying on the earnings theme, apparel retailers trade mixed after Coach (COH 48.95, -3.60) reported a bottom-line miss on lower-than-expected revenue. Furthermore, the company said it observed a 13.6% decline in North American comparable-store sales during the second quarter. Despite the mixed action among retailers, the discretionary sector (+0.2%) outperforms the broader market.

Elsewhere, the industrial (+0.2%) space trades just ahead of the broader market as transports outperform after rail operator Norfolk Southern (NSC 92.80, +4.09) reported better-than-expected results. The stock trades higher by 4.6% while the Dow Jones Transportation Average sports an advance of 0.7%, extending its January gain to 1.7%.

Also of note, the Nasdaq has received a measure of support from its top component, Apple (AAPL 555.70, +6.63), after investor Carl Icahn said, in a tweet, that he bought $500 million worth of shares over the past two weeks, increasing his stake to more than $3 billion. Mr. Icahn also reiterated that he would like to see the company increase its buyback program.

Treasuries hold modest losses with the 10-yr yield up two basis points at 2.86%.

Today's economic data was limited to the weekly MBA Mortgage Index, which rose 4.7% to follow last week's 11.9% increase.

12:30 pm: [BRIEFING.COM] The S&P 500 (+0.1%) has climbed back into the green with help from a handful of influential sectors. On that note, the industrial space has extended its lead to 0.3% while energy and discretionary shares follow not far behind.

The energy sector (+0.2%) outperforms while crude oil trades higher by 1.9% at $96.76 per barrel. Elsewhere, the discretionary sector (+0.2%) trades ahead of the broader market as homebuilders display strength. The iShares Dow Jones US Home Construction ETF (ITB 24.38, +0.33) sports an advance of 1.4% but remains down 1.7% in January.

11:55 am: [BRIEFING.COM] It continues to be a tale of two markets as the Nasdaq (+0.3%) hovers near its best level of the session while the Dow (-0.3%) and S&P 500 (-0.1%) remain near their lows. Strikingly, outside of materials (-0.8%) and telecom services (-0.7%), the remaining eight groups sport gains or losses that don't exceed 0.1%.

The industrial sector (+0.1%) is the top performing group as transports outperform after Norfolk Southern (NSC 93.59, +4.88) beat on earnings and revenue. The stock trades higher by 5.6% while the Dow Jones Transportation Average trades up 0.8% as 18 of its 20 components register gains. Including today's advance, the transportation average is higher by 1.8% so far in January.

11:30 am: [BRIEFING.COM] Equity indices remain mixed with the Nasdaq (+0.2%) maintaining its lead. The tech-heavy index was poised to join the Dow (-0.4%) and S&P 500 (-0.1%) in the red, but received a boost from shares of Apple (AAPL 555.62, +6.55) after activist investor Carl Icahn said, in a tweet, that he bought $500 million worth of shares over the past two weeks, increasing his stake to more than $3 billion. Mr. Icahn also reiterated that he would like to see the company increase its buyback program. Following the comments, Apple trades higher by 1.2%.

Interestingly, the recent spike in Apple was well-timed as it coincided with a retreat in biotechnology, which provided a measure of support to the Nasdaq during the first hour of action.

11:00 am: [BRIEFING.COM] Cautious action continues with the Nasdaq (+0.1%) and S&P 500 (+0.1%) trading little changed. Meanwhile, the Dow (-0.4%) has dropped to a fresh low.

The price-weighted index lags as 19 of its 30 components hover in the red. IBM (IBM 181.66, -6.77) remains the weakest member while three more components-Intel (INTC 25.22, -0.37), JPMorgan Chase (JPM 57.51, -0.66), and Verizon (VZ 47.20, -0.50)-trade with losses of 1.0% or more.

On the upside, Disney (DIS 75.08, +0.88) is the leading index member, trading higher by 1.2%.

Also of note, there has been an increase in demand for downside protection as the CBOE Volatility Index (VIX 13.02, +0.15) trades higher by 1.2%.

10:30 am: [BRIEFING.COM] Commodities are mixed again this morning with metals mostly in the red and energy higher.

Metals are all lower this morning, excluding platinum futures, and are mostly showing modest losses. Overnight on the LME, aluminum futures fell 2.2% at $1795/ton. Feb gold has been selling off a little here and is now -0.3% at $1238.30/oz, while Mar silver is -0.2% at $19.83/oz.

In energy, WTI crude oil, brent crude oil, RBOB gasoline and heating oil futures are all trading higher. U.S. WTI crude has been in positive territory all day so far and just hit a new HoD. Mar crude is now +1.3% at $96.17/barrel.

Feb natural gas futures rallied this morning on an unfavorable weather outlook and is now +4.1% at $4.61/MMBtu.

10:00 am: [BRIEFING.COM] Recent action saw the S&P 500 briefly join the Dow (-0.2%) in the red while the Nasdaq (+0.2%) continues to hold a modest gain. The tech-heavy index is being held up by chipmakers and biotechnology. The PHLX Semiconductor Index trades higher by 0.3% after Texas Instruments (TXN 44.28, +0.43) reported in-line earnings on better-than-expected revenue. Elsewhere, the iShares Nasdaq Biotechnology ETF (IBB 252.89, +0.90) trades up 0.4%.

Even though the major averages trade mixed, participants have not shown much demand for volatility protection as the CBOE Volatility Index (VIX 12.83, -0.04) holds a modest loss of 0.3%.

9:45 am: [BRIEFING.COM] As expected, the stock market began the trading day on a mixed note. The Nasdaq and S&P 500 opened in the green before returning near their flat lines. Meanwhile, the underperformance of IBM (IBM 181.53, -6.90) has kept the Dow (-0.2%) below its unchanged level during the opening minutes.

With regard to sector standing, five groups hold modest early gains with energy (+0.3%) in the lead. On the downside, consumer discretionary (-0.1%), materials (-0.3%), and technology (-0.2%) lag.

Treasuries hover just above their overnight lows with the 10-yr yield up two basis points at 2.85%.

9:15 am: [BRIEFING.COM] S&P futures vs fair value: +1.30. Nasdaq futures vs fair value: +5.20. The major averages are expected to follow Tuesday's mixed finish with a mixed open. The S&P 500 futures hover one point above fair value while Dow futures trade just below their flat line as IBM (IBM 180.63, -7.80) weighs.

Big Blue holds a pre-market loss of 4.1% after announcing a bottom-line beat on worse-than-expected revenue. Although the company reported above-consensus earnings, the beat was due in part to a lower tax rate. Another large Dow component, United Technologies (UTX 115.00, +0.01), also reported a bottom-line beat on worse-than-expected revenue, but the stock trades little changed.

In other earnings of note, Norfolk Southern (NSC 90.75, +2.04) beat on earnings and revenue while Coach (COH 48.49, -4.06) missed on both metrics and said North American comparable-store sales fell 13.6% during the second quarter. The results are expected to weigh on other retailers.

Treasuries hold modest losses with the 10-yr yield up one basis point at 2.85%.

8:57 am: [BRIEFING.COM] S&P futures vs fair value: +1.30. Nasdaq futures vs fair value: +5.20. The S&P 500 futures have inched back above their flat line.

Markets across Asia ended mostly higher, buoyed by strength in Chinese equities. The Bank of Japan kept its policy stance unchanged while maintaining its inflation target at 2.0% and reiterating it still expects annualized growth of 2.7%. Elsewhere, the Bank of Thailand opined overnight and surprised many by holding its key rate steady at 2.25% (2.00% expected). Australia saw an improved Westpac Consumer Sentiment (-1.7% actual versus -4.8% expected) and hotter than expected readings for both CPI (0.8% quarter-over-quarter versus 0.5% expected) and trimmed mean CPI (0.9% actual versus 0.6% expected).

Japan's Nikkei added 0.2%, seeing little reaction to the BoJ. Steel stocks were strong after Tokyo Steel posted its first profit in three quarters. Shares ended the day up 5.0%.
Hong Kong's Hang Seng edged up 0.2% for a second session. Financials remained in favor as Industrial & Commercial Bank of China and China Construction Bank added 1.5% and 1.3%, respectively.
China's Shanghai Composite jumped 2.2%, seeing solid gains for a second day as traders gobbled up shares on the hopes the People's Bank of China would inject more liquidity into the system. As a result, property developers saw significant gains as China Vanke climbed 5.5% and Gemdale rallied 4.9%.

Core European indices hover just below their flat lines while markets in Italy (-0.8%) and Spain (-0.9%) lag. Investors received several economic data points as Great Britain's Claimant Count declined 24,000 (-35,000 expected, -34,300 last) while the Unemployment rate fell to 7.1% from 7.4% (7.3% consensus), putting it just 0.1% above the BoE's threshold for policy tightening. Separately, Public Sector Net Borrowing rose GBP10.40 billion (GBP12.30 billion expected, GBP15.10 billion last) and Average Earnings + Bonus increased 0.9% (1.0% forecast, 0.9% last). Elsewhere, Spain's trade deficit widened to EUR1.76 billion from EUR1.36 billion (deficit of EUR0.50 billion expected) and Swiss ZEW Expectations ticked down to 36.4 from 39.4 (44.0 consensus).

France's CAC trades flat. Consumer names Danone and L'Oreal hold respective gains of 1.8% and 1.2% while producers of basic materials lag. Lafarge is lower by 2.0% and Vallourec holds a loss of 1.4%.
Great Britain's FTSE is lower by 0.1% as financials lag. Royal Bank of Scotland and RSA Insurance Group are both down near 3.0%.
In Germany, the DAX holds a loss of 0.1% as banks lag while utilities outperform. Allianz, Deutsche Bank, and Muenchener Re are all down between 0.6% and 1.9%. On the upside, E.ON is higher by 0.9% and RWE trades up 3.0%.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: +1.00. U.S. equity futures hover just below their flat lines with the Dow futures seeing the largest decline (-0.2%) as IBM (IBM 182.20, -6.23) weighs.

The second-largest Dow component holds a pre-market loss of 3.4% after beating its Capital IQ earnings estimate by 13 cents on below-consensus revenue. Despite the bottom-line beat, the report has been scrutinized due to the company accounting for a lower tax rate than in previous quarters.

In other earnings news, the retail sector may be tested again after Coach (COH 49.50, -3.05) reported a bottom-line miss on lower-than-expected revenue. Furthermore, the company said it observed a 13.6% decline in North American comparable-store sales during the second quarter.

7:59 am: [BRIEFING.COM] S&P futures vs fair value: -1.40. Nasdaq futures vs fair value: -2.00. U.S. equity futures trade little changed amid cautious overseas action. The S&P 500 futures hover one point below fair value.

Reviewing overnight developments:

Asian markets ended higher. Japan's Nikkei +0.2%, Hong Kong's Hang Seng +0.2%, and China's Shanghai Composite +2.2%.
Economic data was limited:
The Bank of Japan made no changes to its policy stance, holding its key interest rate unchanged at 0-0.10%, as expected. Separately, the All Industries Activity Index ticked up 0.3% month-over-month (0.4% forecast, -0.4% last).
Australia's CPI rose 0.8% quarter-over-quarter (0.5% consensus, 1.2% prior) while the annualized reading rose 2.7% (2.5% forecast, 2.2% last). Also of note, trimmed mean CPI rose 0.9% quarter-over-quarter (0.6% forecast, 0.6% last).
In news:
In Australia, the hotter-than-expected CPI reading reduced the likelihood of a rate cut at the upcoming February meeting, per the swaps market.

Major European indices hover in the red. Great Britain's FTSE -0.1%, Germany's DAX -0.1%, and France's CAC -0.1%. Elsewhere, Italy's MIB -0.5% and Spain's IBEX -0.7%.
Investors received several economic data points:
Great Britain's Claimant Count declined 24,000 (-35,000 expected, -34,300 last) while the Unemployment rate fell to 7.1% from 7.4% (7.3% consensus). Separately, Public Sector Net Borrowing rose GBP10.40 billion (GBP12.30 billion expected, GBP15.10 billion last) and Average Earnings + Bonus increased 0.9% (1.0% forecast, 0.9% last).
Spain's trade deficit widened to EUR1.76 billion from EUR1.36 billion (deficit of EUR0.50 billion expected).
Swiss ZEW Expectations ticked down to 36.4 from 39.4 (44.0 consensus).
Among news of note:
After the reported decline, Britain's unemployment stands just 0.1% above the Bank of England's threshold for policy tightening.

In U.S. corporate news:

Coach (COH 48.58, -3.97): -7.6% following its bottom-line miss on worse-than-expected revenue.
Cree (CREE 64.40, +1.57): +2.5% after beating on earnings.
IBM (IBM 182.30, -6.13): -3.3% after reporting a bottom-line beat on below-consensus revenue. It should be noted the earnings beat was partly due to the company accounting for a lower tax rate than in previous quarters.
Texas Instruments (TXN 43.85, 0.00): announced in-line earnings on above-consensus revenue.
United Technologies (UTX 114.30, -0.69): -0.6% after reporting a bottom-line beat on below-consensus revenue.

The weekly MBA Mortgage Index rose 4.7% to follow last week's 11.9% increase.

6:21 am: [BRIEFING.COM] S&P futures vs fair value: -2.50. Nasdaq futures vs fair value: -4.50.

6:21 am: [BRIEFING.COM] Nikkei...15820.96...+25.00...+0.20%. Hang Seng...23082.25...+49.10...+0.20%.

6:21 am: [BRIEFING.COM] FTSE...6822.54...-11.70...-0.20%. DAX...9677.92...-50.30...-0.50%.

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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