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 @ $1,980.00 dollars or +19.80 points, Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $1,980.00 dollars

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

Trade Log: All of my trades were posted real-time in the timestamp ##TheStrategyLab chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=135&t=1918


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

##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) general volatility analysis involving WRB Analysis so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell and I do not have the time/energy/resources to manage a signal calling chat room. Access instructions for chat room @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

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

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

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=248&t=2530

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Market Context Summaries

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


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

Wall St. boosted by earnings, S&P posts best week in nearly two years

NEW YORK (Reuters) - U.S. stocks closed out their best week in nearly two years on Friday, helped by earnings from Microsoft and Procter & Gamble and as concerns eased over the possible spread of Ebola in the United States.

The S&P 500 (.SPX) was up 5.5 percent from its low on Oct. 15 and had its best weekly gain in nearly two years, boosted by solid corporate earnings reports.

News of the first case of Ebola diagnosed in New York City hit futures late on Thursday, but the markets shook off those concerns on Friday. A doctor being treated for Ebola in a New York City hospital is in stable condition, the city's health commissioner said, while the World Health Organization set out plans for speeding up development and deployment of experimental Ebola vaccines.

"I am encouraged by the fact that the market seems to be having a cooler head about the most recent Ebola news," said Steve Sosnick, equity risk manager at Timber Hill/Interactive Brokers. "It feels like a market that's trying to consolidate some very sharp moves."

Shares of Microsoft (MSFT.O) rose 2.5 percent to $46.13, after the company reported higher-than-expected quarterly revenue while keeping profit margins largely intact.

Fellow Dow component Procter & Gamble (PG.N) gained 2.3 percent to $85.16. The world's largest household products maker said it would split off its Duracell battery business into a separate company.

On the downside, Amazon (AMZN.O) plunged 8.3 percent to $287.06 and was the biggest drag on both the S&P 500 and Nasdaq 100 (.NDX) after the online retailer's sales projections for the crucial holiday quarter disappointed Wall Street and third-quarter results missed forecasts.

According to Thomson Reuters data through Friday morning, of 205 companies in the S&P 500 that have reported earnings, 69.8 percent have topped analysts' expectations, above the 63 percent rate since 1994. On the revenue side, 59.8 percent have beaten expectations, slightly below the 61 percent rate since 2002.

The Dow Jones industrial average (.DJI) rose 127.51 points, or 0.76 percent, to 16,805.41, the S&P 500 (.SPX) gained 13.76 points, or 0.71 percent, to 1,964.58 and the Nasdaq Composite (.IXIC) added 30.92 points, or 0.69 percent, to 4,483.72.

Advancing issues outnumbered declining ones on the NYSE by 1,905 to 1,150, for a 1.66-to-1 ratio on the upside; on the Nasdaq, 1,501 issues rose and 1,151 fell for a 1.30-to-1 ratio favoring advancers.

The benchmark S&P 500 index posted 38 new 52-week highs and two new lows; the Nasdaq Composite recorded 50 new highs and 48 new lows.

About 5.3 billion shares changed hands on U.S. exchanges, well below the 8.1 billion October average, according to BATS Global Markets.

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4:10 pm: [BRIEFING.COM] The major averages capped a strong week with a rally that sent the S&P 500 higher by 0.7%. The benchmark index gained 4.1% for the week while the Nasdaq Composite (+0.7%) extended its weekly advance to 5.3%.

Equity indices endured a shaky start with a handful of concerns factoring into the cautious posture in the early going:

Contagion concerns stemming from news that a New York doctor who exhibited Ebola-like symptoms yesterday tested positive for the disease
Disappointing economic data from China that revealed a 1.3% year-over-year drop in New Home Sales and featured monthly declines in all 70 cities, and
Below-consensus results from Amazon.com (AMZN 287.06, -26.12)

After spinning their wheels through the opening hour, the key indices were able to pull away from their flat lines with help from influential sectors. In addition, investor sentiment was boosted by news from the National Institute of Health indicating Dallas Presbyterian nurse Nina Pham has recovered from Ebola.

Coincidentally, the health care sector (+1.4%) settled in the lead with significant support from Bristol-Myers (BMY 53.63, +1.13) and Shire (SHPG 194.49, +9.51). The two names posted respective gains of 2.2% and 5.1% in reaction to upbeat quarterly results while the iShares Nasdaq Biotechnology ETF (IBB 288.77, +5.15) jumped 1.8%.

Similar to health care, the remaining three countercyclical sectors ended ahead of the broader market with gains between 0.8% and 1.0%.

Meanwhile, the cyclical groups ended in mixed fashion with respect to the S&P 500. Financials (+0.9%) and industrials (+0.9%) outperformed, while consumer discretionary (-0.1%) and energy (-0.3%) lagged.

The consumer discretionary sector was pressured by an 8.3% loss in the shares of Amazon.com while also enduring weakness among carmakers. Ford (F 13.78, -0.62) lost 4.3% after surpassing bottom-line estimates on below-consensus revenue. On the flip side, media names and restaurant stocks displayed relative strength.

For its part, the energy sector stumbled in the morning amid weakness in crude oil. The energy component climbed off its worst level of the day, but still ended lower by 1.2% at $81.03/bbl.

Also of note, the technology sector (+0.8%) traded in-line with the market for the bulk of the session before joining the leaders in the afternoon. Dow component Microsoft (MSFT 46.13, +1.11) advanced 2.5% after beating earnings and revenue estimates while chipmakers drew strength from KLA-Tencor (KLAC 75.90, +4.90). The stock soared 6.9% in reaction to in-line results, combined with a special dividend of $16.50 and an increased buyback program. The broader PHLX Semiconductor Index rose 1.1%.

Treasuries ended flat after sliding from their overnight highs. The 10-yr yield ended at 2.27%.

Participation was roughly in-line with long-term averages as 700 million shares changed hands at the NYSE floor.

Economic data was limited to the New Home Sales report for September, which revealed a 0.2% increase to 467,000 from a revised rate of 466,000 (from 504,000). However, that was below the Briefing.com consensus, which expected a reading of 475,000. Most notably, the large downward revision to the August figures took away what had been the strongest monthly reading since May 2008.

Prices for new homes fell 4.0% year-over-year, which was the first such decline since April and the largest drop since a 7.7% tumble in January 2012.

Monday's data will be limited to the 10:00 ET release of the Pending Home Sales report for September (Briefing.com consensus 0.5%).

Nasdaq Composite +7.4% YTD
S&P 500 +6.3% YTD
Dow Jones Industrial Average +1.4% YTD
Russell 2000 -3.8% YTD

Week in Review: Stocks Rebound From Recent Slide

Equity indices finished the Monday session near their highs with the Nasdaq Composite (+1.4%) leading the way. The S&P 500 (+0.9%) settled a bit behind the tech-heavy index while the Dow Jones Industrial Average (+0.1%) struggled to turn positive. The price-weighted Dow spent the bulk of the session in the red as IBM (IBM) weighed. The stock fell 7.1% and surrendered its standing as the second-largest Dow component after reporting disappointing results that featured revenue declines across all key segments and all geographic regions in which the company operates. Despite IBM's miss, the technology sector kept pace with the broader market, thanks in part to the relative strength of Apple (AAPL). The top-weighted sector component jumped 2.1% ahead of its earnings report. Similarly, chipmakers contributed to the advance with the PHLX Semiconductor Index climbing 1.5%.

The market enjoyed another broad-based advance on Tuesday with the S&P 500 (+2.0%) posting its fourth consecutive gain. The benchmark index made its biggest jump in more than a year and recaptured its 200-day moving average (1906.95) while the Nasdaq Composite (+2.4%) outperformed throughout the session. Equities began on an upbeat note with a set of better than expected results contributing to the early strength. However, the futures market received a separate overnight boost from a Reuters report suggesting the European Central Bank will look to begin buying corporate bonds. That report was followed by headlines from the Financial Times indicating the ECB has no plans to implement the aforementioned buying program at this time. The denial did not stop European equities from ending on their highs while the U.S. market built on its early strength throughout the day. For the second day in a row, the Dow Jones Industrial Average (+1.3%) could not keep pace with the broader market, which was once again due in part to the relative weakness in the shares of IBM. The third-largest index component lost 3.5% while only two other Dow members finished in the red. To that point, Coca-Cola (KO) and McDonald's (MCD) registered respective losses of 6.0% and 0.6% in reaction to cautious guidance from both consumer companies.

The stock market ended the midweek session on a lower note, causing the S&P 500 (-0.7%) to snap its four-day winning streak. The benchmark index slumped into the red during afternoon action while the Dow Jones Industrial Average (-0.9%) underperformed once again. Stocks displayed modest gains in the early going, but that advance took place despite the lack of concerted leadership. The underperformance of several influential sectors weighed on the market and led to a midsession retreat. Five of six cyclical sectors ended behind the broader market with energy (-1.7%) showing the largest decline. The growth-sensitive sector displayed intraday strength, but slumped in the afternoon amid weakness in crude oil. The energy component spent the morning near its flat line, but plunged in the afternoon to end lower by 2.4% at $80.49/bbl. Greenback strength acted as a bit of a headwind with the Dollar Index (85.75, +0.45) rising 0.5%.

Equities finished the Thursday session with solid gains. The Russell 2000 (+1.8%) led the way while the S&P 500 settled higher by 1.2% with eight sectors in the green. The key indices surged at the start of the trading day after the overnight session featured upbeat economic data from overseas. On that note, Manufacturing PMI readings from China, Japan, and the Eurozone surpassed estimates, but the headline figures masked some weakness below the surface. For instance, China's HSBC Manufacturing PMI (50.4; expected 50.3) came in ahead of estimates, but the output and employment indices contracted. Additionally, a set of better than expected quarterly results from several large cap names also provided a measure of support.

3:35 pm: [BRIEFING.COM]

Energy futures displayed weakness again today, but recovered some before the session ended
WTI crude oil ran back above $81/barrel, closing -$1.02 to $81.03/barrel
Natural gas recovered all of its losses, coming back from $3.56/MMBtu
Gold and silver rose very modestly on the day, while copper ended flat
Grains lost some ground today (corn, wheat, soybeans)

2:55 pm: [BRIEFING.COM] The S&P 500 (+0.6%) sits on its best level of the day with one hour remaining in the final session of the week.

Investors received the first heavy batch of Q3 earnings over the course of this week with another full slate scheduled for next week. On Monday morning, Merck (MRK 57.24, +0.61) and Seagate (STX 58.02, +1.51) will headline the list of reporting companies while the afternoon will feature results from Amgen (AMGN 146.43, -0.82), Cliffs Natural Resources (CLF 9.36, +0.57), and Buffalo Wild Wings (BWLD 134.86, +5.86).

2:30 pm: [BRIEFING.COM] The S&P 500 (+0.5%) has returned into the neighborhood of its early afternoon high while the Russell 2000 sits right on its flat line.

This week was very quiet on the economic front, but a few more economic reports will be released next week. Monday's data will be limited to the 10:00 ET release of the Pending Home Sales report for September, while the October Consumer Confidence Index will be released on Tuesday at 10:00 ET.

On Wednesday afternoon, investors will receive the latest policy directive from the FOMC, which is expected to call for a $15 billion taper that will effectively end the asset purchasing program. For more insight on the end of QE, take a look at this week's The Big Picture column that was published on Briefing.com earlier today.

1:55 pm: [BRIEFING.COM] The major averages continue holding gains with the S&P 500 higher by 0.4%. Today's advance puts the benchmark index on track to finish the week higher by 3.9%. Furthermore, that sharp rally has narrowed the S&P 500's October loss to 0.6% with just one more week remaining in the month.

Although the benchmark index has enjoyed a strong week, the tech-heavy Nasdaq has fared even better. The index is higher by 5.0% this week, which has trimmed its October loss to 0.5%.

All ten sectors are on course to register weekly gains with health care in the lead. The countercyclical group has surged 6.3% this week. On the flip side, the telecom services sector has only added 0.6% since last Friday.

1:25 pm: [BRIEFING.COM] Early buying efforts have faded in early-afternoon trading, knocking the indices back from session highs reached around 12:20 p.m. ET.

All things considered, the stock market has performed admirably today, responding stronger it seems to an NIH report that Dallas nurse Nina Pham is free of the Ebola virus than to a report that a New York doctor tested positive for Ebola. Ms. Pham's recovery is a tangible marker that the virus can be treated successfully and has thus helped keep in check contagion concerns that were running wild a few weeks ago.

Separately, the ECB will release the results from its bank stress tests on Sunday. The potential for increased volatility after they are published, and the recognition that the major indices have logged big percentage gains this week, might be factoring into decisions to take some money of the table going into the weekend.

Strikingly, the CBOE Volatility Index (16.73, +0.20) and the 10-yr note (+4/32) are up right now along with stock prices.


12:55 pm: [BRIEFING.COM] The major averages hold modest midday gains with the S&P 500 higher by 0.3% while the Nasdaq (+0.2%) follows right behind.

The first half of the Friday session has consisted of a shaky start that was followed by a rally to fresh highs. Overnight news contributed to a cautious open with China reporting another decline in New Home Prices and separate headlines indicating the New York doctor who was rushed to a hospital with Ebola-like symptoms tested positive for the disease. On a related note, the National Institute of Health said Dallas Presbyterian nurse Nina Pham has recovered from Ebola.

During the past 45 minutes, the S&P 500 marked a session high just north of its 100-day average (1961.81) and currently trades within four points of that level.

Eight sectors hold midday gains while the two decliners-consumer discretionary (-0.4%) and energy (-0.6%)-have narrowed their early losses. The energy sector was down in excess of 1.0% during the opening hour with crude factoring into the weakness. Similar to the sector, oil has climbed off its low, but remains down 1.1% at $81.18/bbl.

For its part, the consumer discretionary sector has been pressured by disappointing results from Amazon.com (AMZN 288.16, -25.00). The stock trades lower by 7.9% and has contributed to the underperformance of the Nasdaq.

However, the tech-heavy index has been able to overcome the bulk of the weakness with help from chipmakers and biotechnology. The PHLX Semiconductor Index has added 0.9% while the technology sector trades in-line with the S&P 500. KLA-Tencor (KLAC 75.62, +4.62) has been a standout in the microchip space after reporting in-line results, combined with a special dividend of $16.50 and an increased buyback program.

Elsewhere, the iShares Nasdaq Biotechnology ETF (IBB 286.68, +3.06) is higher by 1.1% while the health care sector (+0.9%) leads following upbeat results from Bristol-Myers (BMY 53.48, +0.98) and Shire (SHPG 195.00, +10.02).

Treasuries hold slim gains after slipping from their highs. The 10-yr yield is lower by one basis point at 2.26%.

Economic data was limited to the New Home Sales report for September, which revealed a 0.2% increase to 467,000 from a revised rate of 466,000 (from 504,000). However, that was below the Briefing.com consensus, which expected a reading of 475,000. Most notably, the large downward revision to the August figures took away what had been the strongest monthly reading since May 2008.

Prices for new homes fell 4.0% year-over-year, which was the first such decline since April and the largest drop since a 7.7% tumble in January 2012

12:30 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.5% while the Nasdaq Composite (+0.4%) follows right behind.

The Nasdaq has trailed the benchmark index since the opening bell due to a 7.5% decline in the shares of Amazon.com (AMZN 289.80, -23.38) after the online retailer reported disappointing results.

For the most part, Amazon.com's weakness has been masked by strength in high-beta areas like chipmakers and biotechnology. The PHLX Semiconductor Index is higher by 1.1% with all but five index components showing gains. Meanwhile, the iShares Nasdaq Biotechnology ETF (IBB 287.54, +3.92) trades up 1.4%.

11:55 am: [BRIEFING.COM] The Dow (+0.5%), Nasdaq (+0.4%), and S&P 500 (+0.5%) have extended to fresh highs while the Russell 2000 (-0.1%) remains in negative territory.

The price-weighted Dow could not keep pace with the S&P 500 during the first three sessions of the week, but the index has traded in-line or ahead of the benchmark index since yesterday. Today, only five components hover in the red with losses of no more than 0.4%. Payment processor Visa (V 213.38, -0.90) is the weakest performer while seven index members show gains of at least 1.0%. Procter & Gamble (PG 85.73, +2.50) has provided a measure of support, trading higher by 3.0% after reporting in-line results and reaffirming its guidance.

Also of note, Treasuries have surrendered all of their gains, sending the benchmark yield back to unchanged on the session (2.27%).

11:25 am: [BRIEFING.COM] The S&P 500 (+0.3%) continues holding a modest gain with eight sectors trading in positive territory.

The health care sector (+1.0%) has shown significant strength since the early going thanks to better than expected earnings from Bristol-Myers (BMY 53.92, +1.42) and Shire (SHPG 195.68, +10.70). Meanwhile, the iShares Nasdaq Biotechnology ETF (IBB 287.66, +4.04) trades up 1.4% and is on track for its third consecutive gain that has placed it at a fresh all-time high.

Similarly, the remaining three countercyclical groups-consumer staples (+0.6%), telecom services (+0.9%), and utilities (+0.7%)-all trade ahead of the broader market.

Elsewhere, Treasuries have retreated to their lows with the 10-yr yield at 2.27 (-1 bp).

10:55 am: [BRIEFING.COM] The Dow, Nasdaq, and S&P 500 continue holding slim gains of no more than 0.3% while the Russell 2000 (-0.1%) lags.

Equity indices rallied at the start, but were pressured from their early highs by significant weakness in the energy sector (-1.2%). The cyclical group opened among the laggards and was in the midst of a rebound when renewed selling in crude oil pressured the sector to a fresh low. The energy component is lower by 2.0% at $80.47/bbl.

Energy notwithstanding, the discretionary sector (-0.3%) also continues weighing on the broader market while other influential sectors are mixed. Financials (+0.5%), health care (+0.9%), and technology (+0.3%) outperform while industrials trade in-line with the S&P 500.

10:35 am: [BRIEFING.COM]

Oil prices are taking a hit again today
WTI crude oil (U.S. benchmark) just hit another new low for the day at $80.43/barrel
WTI Dec crude now trades at $80.57/barrel, down 1.9%.
Brent crude (international benchmark) is at -1.4% at $85.64/barrel, also near its low for the day
Energy futures are in the red overall today (oil, nat gas, heating oil, RBOB gasoline)
Nov nat gas is currently -1.6% at $3.56/MMBtu, heating oil -1.6% at $2.45/gallon, RBOB -1.3% at $2.14/gallon
Copper is flat this morning, while precious metals are showing some gains
Dec gold is +0.3% at $1232.20/oz, Dec silver +0.7% at $17.28/oz

10:00 am: [BRIEFING.COM] The S&P 500 (+0.1%) has slipped back near its flat line while the Nasdaq Composite (+0.2%) trades a little ahead.

Just released, new home sales in September hit an annualized rate of 467,000, which was up from the revised August rate of 466,000 (from 504,000), but worse than the rate of 475,000 that had been broadly expected by the Briefing.com consensus.

9:40 am: [BRIEFING.COM] The S&P 500 began the Friday session near its flat line, but has pulled away from that level and now trades higher by 0.3%.

The consumer discretionary sector (-0.5%) weighs due to a 7.4% loss in the shares of Amazon.com (AMZN 289.28, -23.88), which reported disappointing results.

Elsewhere, the energy sector (-0.3%) lags amid weakness in crude oil. The energy component has surrendered 1.4% and currently trades at $80.93/bbl.

On the upside, the health care sector (+0.8%) leads with help from Shire (SHPG 194.88, +9.90). The drug maker has added 5.4% in reaction to upbeat results. Elsewhere, the tech sector (+0.4%) has received support from Microsoft (MSFT 45.80, +0.78). The Dow component is higher by 1.7% after beating earnings and revenue estimates.

The New Home Sales report (Briefing.com consensus 475,000) will be released at 10:00 ET.

9:13 am: [BRIEFING.COM] S&P futures vs fair value: -0.10. Nasdaq futures vs fair value: -1.50. The stock market is on track for a flat open with the S&P 500 futures trading within a point of fair value. Index futures dipped last evening after Amazon.com (AMZN 283.75, -29.43) reported disappointing results for the third quarter and then extended their retreat when it was reported that the doctor who was rushed to a New York hospital with Ebola-like symptoms tested positive for the disease.

Index futures have been able to pull away from their lows, but disappointing economic data has contributed to the cautious posture. On that note, China reported a 1.3% year-over-year decline in New Home Prices with all 70 cities showing monthly retreats.

Meanwhile in Europe, the European Central Bank is scheduled to release the results of its stress test on Sunday, but a recent Bloomberg TV report suggested 25 banks are on course to fail the test.

On the earnings front, results from companies not named Amazon.com have been mostly better than expected. To that point, Ford Motor (F 14.54, +0.14), Shire (SHPG 193.05, +8.07), Microsoft (MSFT 47.08, +2.06), and UPS (UPS 102.75, +2.27) are on track to register early gains after beating earnings estimates.

Treasuries hold modest gains with the 10-yr yield down one basis point at 2.26%.

9:01 am: [BRIEFING.COM] S&P futures vs fair value: -0.60. Nasdaq futures vs fair value: -1.00. The S&P 500 futures trade within a point of fair value.

Asian markets ended mostly lower

In economic data:
China's House Prices fell 1.3% year-over-year (previous 0.5%)
South Korea's GDP rose 0.9% quarter-over-quarter, as expected, while the year-over-year reading increased 3.2% (consensus 3.3%; previous 3.5%)
New Zealand's trade deficit widened to $1.35 billion from $472 million (expected deficit of $700 million)
Singapore's Industrial Production fell 3.3% month-over-month (consensus -0.8%; previous -0.4%) while the year-over-year reading declined 1.2% (expected 0.1%; prior 4.0%)

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Japan's Nikkei gained 1.0% and outperformed the region amid broad strength. Growth-sensitive names led with Toho Zinc, Kubota, and Sumitomo Osaka Cement up between 2.7% and 5.6%.
Hong Kong's Hang Seng shed 0.1%, lagging amid weakness in property developers. China Resources Land, Henderson Land Development, and China Overseas Land surrendered between 0.9% and 1.7%.
China's Shanghai Composite ended flat. Great Wall Motor tumbled 6.7% while China Television Media gained 9.3%.
India's Sensex remained closed for Diwali.

Major European indices trade mostly lower with Germany's DAX (-0.6%) showing the largest loss. The European Central Bank is expected to release the results of its stress test on Sunday around 4 AM ET with Vitor Constancio's follow up press conference scheduled 30 minutes after the release. To that point, a recent report from Bloomberg TV indicated ECB draft documents showed 25 banks are set to fail the test while ten are 'in negotiations.'

Economic data was limited:
Germany's GfK Consumer Climate ticked up to 8.5 from 8.4 (expected 8.0)
Great Britain's Q3 GDP rose 0.7% quarter-over-quarter and 3.0% year-over-year. Both figures matched expectations. Separately, Index of Services increased 0.8% (consensus 0.9%; previous 1.0%)
Italy's Consumer Confidence slipped to 101.4 from 101.9 (expected 101.5) while Retail Sales fell 3.1% year-over-year (forecast -0.9%; prior -1.7%)
Spain's PPI slipped 0.3% year-over-year (expected 0.0%; previous -0.6%)

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Germany's DAX is lower by 0.6% with chemical manufacturers on the defensive. BASF and K+S hold respective losses of 4.0% and 1.6%. On the upside, Deutsche Telekom is higher by 2.3%.
In France, the CAC trades down 0.6% with Kering showing the largest loss. The stock has surrendered 4.4% after its Gucci brand saw a 1.6% decline in sales. Orange outperforms with a gain of 1.3%.
Great Britain's FTSE has given up 0.5% with energy names pressuring the index. BP and Tullow Oil are lower by 1.3% and 2.0%, respectively. Shire outperforms with a gain of 3.1% after reporting upbeat earnings.

8:26 am: [BRIEFING.COM] S&P futures vs fair value: -1.10. Nasdaq futures vs fair value: -6.80. U.S. equity futures continue hovering in the red while Treasuries sit just below their highs with the 10-yr yield down three basis points at 2.24%.

The benchmark yield has climbed steadily over the past three days, but the current standing suggests a pullback may take place today. Treasuries strengthened overnight after the doctor in New York who was suspected of having Ebola tested positive for the disease. Furthermore, disappointing housing data from China (House Prices -1.3% year-over-year) has also contributed to the defensive trade.

7:56 am: [BRIEFING.COM] S&P futures vs fair value: -5.10. Nasdaq futures vs fair value: -13.80. U.S. equity futures trade modestly lower amid cautious action overseas. The S&P 500 futures hover five points below fair value after spending the night in negative territory. Last evening, futures began feeling pressure after Amazon.com (AMZN 282.70, -30.48) reported disappointing results for the quarter and lowered its guidance. Index futures took another leg lower a little later when it was reported that the New York doctor who was hospitalized yesterday with symptoms of Ebola does indeed have the disease.

It is worth mentioning that the overnight pullback took place after a big surge earlier in the week that has the S&P 500 entering the Friday session with a week-to-date gain of 3.4%. Meanwhile, the tech-heavy Nasdaq has added 4.6% since last Friday.

Treasuries hover near their highs with the 10-yr yield down three basis points at 2.24%.

In U.S. corporate news of note:

Ford Motor (F 14.40, 0.00): flat after beating bottom-line estimates on light revenue.
Juniper Networks (JNPR 20.74, +0.42): +2.1% after its one-cent beat overshadowed below-consensus guidance for the current quarter.
KLA-Tencor (KLAC 78.88, +7.88): +11.1% following its revenue beat and the announcement of a leveraged capital return plan.
Microsoft (MSFT 46.30, +1.28): +2.8% after beating earnings and revenue estimates.
Pandora Media (P 21.36, -1.76): -7.6% despite reporting a one-cent beat.
Procter & Gamble (PG 84.51, +1.28): +1.5% in reaction to in-line results.
Shire (SHPG 192.82, +7.84): +4.2% after reporting better than expected revenue.

Economic data will be limited to the New Home Sales report (Briefing.com consensus 475,000), which will be released at 10:00 ET.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei +1.0%, Hong Kong's Hang Seng -0.1%, and China's Shanghai Composite closed flat
In economic data:
China's House Prices fell 1.3% year-over-year (previous 0.5%)
South Korea's GDP rose 0.9% quarter-over-quarter, as expected, while the year-over-year reading increased 3.2% (consensus 3.3%; previous 3.5%)
New Zealand's trade deficit widened to $1.35 billion from $472 million (expected deficit of $700 million)
Singapore's Industrial Production fell 3.3% month-over-month (consensus -0.8%; previous -0.4%) while the year-over-year reading declined 1.2% (expected 0.1%; prior 4.0%)
In news:
Concerns regarding China's housing market returned to the forefront after the latest housing report revealed month-over-month declines in price in all 70 cities. On a year-over-year basis, only 10 out of 70 cities reported an increase.

Major European indices trade mostly lower. Great Britain's FTSE -0.4%, Germany's DAX -0.6%, and France's CAC -0.6%. Elsewhere, Italy's MIB +0.1% and Spain's IBEX -0.1%
Economic data was limited:
Germany's GfK Consumer Climate ticked up to 8.5 from 8.4 (expected 8.0)
Great Britain's Q3 GDP rose 0.7% quarter-over-quarter and 3.0% year-over-year. Both figures matched expectations. Separately, Index of Services increased 0.8% (consensus 0.9%; previous 1.0%)
Italy's Consumer Confidence slipped to 101.4 from 101.9 (expected 101.5) while Retail Sales fell 3.1% year-over-year (forecast -0.9%; prior -1.7%)
Spain's PPI slipped 0.3% year-over-year (expected 0.0%; previous -0.6%)
Among news of note:
The European Central Bank is expected to release the results of its stress test on Sunday around 4 AM ET with Vitor Constancio's follow up press conference scheduled 30 minutes after the release.

7:00 am: [BRIEFING.COM] S&P futures vs fair value: -4.50. Nasdaq futures vs fair value: -13.00.

7:00 am: [BRIEFING.COM] Nikkei...15,291.64...+152.70...+1.00%. Hang Seng...23,302.20...-31.00...-0.10%.

7:00 am: [BRIEFING.COM] FTSE...6,396.60...-22.50...-0.40%. DAX...9,013.91...-33.60...-0.40%.

Dollar Pares Gain Before Fed on New York Ebola Case

By Rachel Evans Oct 24, 2014 5:06 PM GMT-0400

The dollar pared its first weekly gain in three weeks against a basket of peers on concern the spread of the Ebola virus may weigh on the economy before the Federal Reserve’s policy meeting.

The yen halted a six-day drop against the dollar after a doctor tested positive for the disease in New York, boosting haven demand. The Bloomberg Dollar Spot Index slipped from almost its highest in more than two weeks as the Fed prepares to meet Oct. 28-29. The euro rallied as a draft report indicated four of five euro-area banks are set to pass a European Central Bank stress test. Brazil’s real soared.

“Every new shock creates a panic for a few days and then it subsides,” Greg Anderson, head of global foreign-exchange strategy in New York at Bank of Montreal, said in a phone interview. “I don’t expect to see a lot further dollar appreciation this year, but I think this is a real good sign of what’s going to happen next year -- a major dollar rally, reminiscent of the late 90s.”

The Bloomberg Dollar Spot Index, which measures the greenback against 10 major peers, lost 0.2 percent to 1,068.16 as of 5 p.m. New York time, paring the gauge’s first weekly gain since the period ending Oct. 3 to 0.4 percent. The measure touched 1,070.57 yesterday, the highest since Oct. 7.

The yen strengthened 0.1 percent to 108.16 per dollar after depreciating to 108.35 yesterday, the weakest level since Oct. 8. Japan’s currency slipped 0.1 percent to 137.04 per euro. The dollar fell 0.2 percent to $1.2671 per euro.

The dollar soared from 1997 to 1999 amid the dot-com boom, gaining against all but the yen among 16 major peers, adding 5.6 percent versus the pound, 17 percent against the Australian dollar and 42 percent versus Brazil’s real.

Dollar Bets

Hedge funds and other large speculators trimmed bets on the dollar versus eight of its major peers from a record high this week. The difference in the number of wagers on a gain compared with those on a drop -- net longs -- was 329,955 on Oct. 21, from 331,464 a week earlier, according to data from the Washington-based Commodity Futures Trading Commission.

Russia’s ruble led losses versus the dollar on the week, dropping 2.8 percent to push its plunge this year to 23 percent. South Africa’s rand added 1.4 percent to pace gainers.

The real led gains today, advancing 1.1 percent, as a poll on this weekend’s presidential election putting Aecio Neves ahead of incumbent Dilma Rousseff revived speculation that a new government will restore economic growth.

The euro rose for the first time in four days as a draft communique showed 105 banks are on track to pass the ECB’s bank health check, with 25 failing. The final results are published on Oct. 26.

Ebola’s Toll

The dollar dropped versus the yen as the International Monetary Fund this week cut its forecast for economic growth in sub-Saharan Africa this year to 5 percent from 5.5 percent, due in part to “economic spillovers starting to materialize” from the Ebola outbreak.

Ebola has infected almost 10,000 people this year, mostly in Sierra Leone, Guinea and Liberia, killing about 4,900. The ill New York doctor had recently returned from aid work in Guinea.

“The Ebola situation certainly doesn’t help and that certainly explains the yen’s rebound,” said Joe Manimbo, a market analyst in Washington at Western Union Business Solutions, a unit of Western Union Co. “But overall the market is just positioning cautiously ahead of the Fed decision next week.”

Fed Meeting

The dollar rose against most of its peers this week after a consumer price index added more than expected, moving the Fed closer to its target of 2 percent inflation.

New home sales in the U.S. rose 0.2 percent to a 467,000 annualized pace from a 466,000 rate in August that was 7.5 percent weaker than previously estimated, Commerce Department data showed today in Washington. The median forecast of 75 economists surveyed by Bloomberg called for the pace to decelerate to 470,000.

The central bank meets next week to consider monetary policy, which has seen rates held at zero to 0.25 percent since 2008. The Fed is expected to end its stimulatory program of bond purchases, known as quantitative easing, this month.

“We saw a little bit of a pullback in the dollar and a little bit of a reduction in risk appetite as a result of the Ebola story,” Omer Esiner, chief market analyst at the currency brokerage Commonwealth Foreign Exchange Inc. in Washington, said in a phone interview. “Next week we’re going to likely shift our focus back on to more fundamental stories, with the Fed probably going to headline next week’s economic calendar.”

To contact the reporter on this story: Rachel Evans in New York at revans43@bloomberg.net

To contact the editors responsible for this story: Dave Liedtka at dliedtka@bloomberg.net Kenneth Pringle, Greg Storey

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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