TheStrategyLab.com Price Action Trading Support Forum

The Market at 04:25PM ET
Dow: +213.59… | Nasdaq: +124.81… | S&P: +28.55…
NASDAQ Vol: 1.9 bln… Adv: 1995… Dec: 937…
NYSE Vol: 719.9 mln… Adv: 2140… Dec: 784…

Moving the Market

Geopolitical concerns wane as the first quarter earnings season heats up

Netflix (NFLX) soars after smashing subscriber growth estimates for the first quarter; helps push other FAANG names higher

Heavily-weighted financial sector underperforms; Goldman Sachs (GS) slides despite beating top and bottom line estimates for the first quarter

CBOE Volatility Index (VIX) drops to a five-week low (~15.50)

Sector Watch
Strong: Consumer Discretionary, Technology, Real Estate
Weak: Financials, Energy, Health Care, Consumer Staples, Telecom Services

04:25PM ET

[BRIEFING.COM] Stocks climbed for the second straight session on Tuesday, as investors turned their attention from geopolitical tensions to Q1 corporate earnings -- which have been largely upbeat thus far. The tech-heavy Nasdaq Composite was particularly strong, adding 1.7%, while the S&P 500 and the Dow finished with respective gains of 1.1% and 0.9%.

All three major indices closed above their 50-day moving averages -- which none of them had done since March 21 or earlier.

Big earnings names included Netflix (NFLX 336.06, +28.28), Goldman Sachs (GS 253.63, -4.25), Johnson & Johnson (JNJ 130.54, -1.22), and UnitedHealth (UNH 238.55, +8.23), all of which reported better-than-expected first quarter profits. Shares of Netflix soared 9.2% -- hitting a new all-time high -- after the streaming media giant crushed its subscriber growth estimates (+7.4 million actual vs +6.5 million estimates) and raised its guidance for Q2. UnitedHealth shares also advanced, adding 3.6%, while shares of Johnson & Johnson and Goldman Sachs declined 0.9% and 1.7%, respectively.

Goldman Sachs' performance was particular disheartening considering the company soundly beat both profit and revenue estimates for the first quarter. Financial giants JPMorgan Chase (JPM 110.21, 0.00), Wells Fargo (WFC 50.57, -0.23), Citigroup (C 69.74, -0.33), and Bank of America (BAC 30.04, +0.11) performed in a similar manner following their recent earnings beats, leaving some investors scratching their heads and others questioning the conviction behind of this recent equity rebound. The financial sector -- which typically holds a leadership position in broader market moves -- finished Tuesday at the bottom of the sector standings with a loss of 0.1%.

In addition to Goldman, another curve-flattening trade in the U.S. Treasury market weighed on the financial group. The yield on the benchmark 10-yr yield slid two basis points to 2.81%, while the yield on the 2-yr note climbed two basis points to 2.39%, cutting the 2s10s spread to 42 basis points. That's the lowest the 2s10s spread -- which points to the difference between what banks make on loans and what they pay on deposits -- has been since 2007 and represents a loss of 37 basis points since February 9.

However, the financial sector aside, Tuesday was a positive day on Wall Street, with advancing issues outpacing declining issues 2.7 to 1.

Netflix's upbeat earnings report helped push FAANG names higher -- Facebook (FB 168.66, +3.83), Apple (AAPL 178.24, +2.42), Amazon (AMZN 1503.83, +62.33), and Alphabet (GOOG 1074.16, +36.18) added between 1.4% and 4.3% -- which, in turn, helped push the consumer discretionary sector (+1.9%), which houses Amazon, and the technology sector (+2.0%), which houses the others, to the top of the sector standings. Tech giant Microsoft (MSFT 96.07, +1.90) also outperformed, adding 2.0%.

The CBOE Volatility Index (VIX) -- dubbed Wall Street's "fear gauge" -- dropped 10.0% on Tuesday to 14.89, which is its lowest level since early March. It's also worth noting that volume was relatively light on Tuesday, with just 720 million shares changing hands at the New York Stock Exchange; the 50-day moving average is 936 million.

Reviewing Tuesday's economic data, which included March Housing Starts and Building Permits and March Industrial Production and Capacity Utilization:

Housing starts increased to a seasonally adjusted annualized rate of 1.319 million units in March (Briefing.com consensus 1.268 million), up from a revised 1.295 million units in February (from 1.236 million). Building permits rose to a seasonally adjusted 1.354 million in March (Briefing.com consensus 1.315 million) from a revised 1.321 million in February (from 1.298 million).
The key takeaway from the report is that the monthly increases were driven entirely by multi-unit dwellings. Single-family starts were down 3.7% while single-family permits fell 5.5%, which is disappointing given the supply shortage of single-family homes.
Industrial Production increased 0.5% in March (Briefing.com consensus +0.3%), while the February reading was revised to +1.0% (from +0.9%). Meanwhile, Capacity Utilization ticked up to 78.0% (Briefing.com consensus 77.8%) from an unrevised reading of 77.7% in February.
The key takeaway from the report is that all three major industry groups played a part in driving the uptick in industrial production in March.

On Wednesday, investors will receive the weekly MBA Mortgage Applications Index and the Fed's Beige Book for March.

Nasdaq Composite: +5.5% YTD
Russell 2000: +2.9% YTD
S&P 500: +1.2% YTD
Dow Jones Industrial Average: +0.3% YTD

Dow: +213.59… | Nasdaq: +124.81… | S&P: +28.55…
NASDAQ Adv/Dec 1995/937. …NYSE Adv/Dec 2140/784.

03:35PM ET

[BRIEFING.COM] Commodities had a rather quiet session. The Bloomberg Commodity Index is roughly flat while the dollar index moved slightly higher.

Among energy, May WTI crude oil futures settled up $0.32 (+0.5%) at $66.50/barrel. EIA data will be released after the bell. May natural gas futures settled $0.01 lower at $2.74/MMBtu.

Looking at precious metals, June gold futures fell $0.70 (0.05) at $1350/oz while May silver futures rose $0.02 to $16.78/oz.

May copper futures settled $0.02 lower at $3.08/lb.
Dow: +264.89… | Nasdaq: +137.73… | S&P: +33.95…
NASDAQ Adv/Dec 1372/858. …NYSE Adv/Dec 2114/805.

03:00PM ET

[BRIEFING.COM] With one hour left in today's session, the Dow is up 0.9%, the S&P 500 is up 1.1%, and the Nasdaq is up 1.8%.

Ten S&P sectors are trading in the green, including consumer discretionary (+1.9%), industrials (+0.8%), energy (+0.6%), materials (+1.0%), technology (+2.2%), health care (+0.7%), consumer staples (+0.2%), utilities (+1.0%), telecom services (+0.1%), and real estate (+1.5%), while one is trading in the red -- financials (-0.2%).

Looking ahead to tonight's earnings, IBM (IBM 161.77, +3.87), United Continental (UAL 67.38, +0.07), and CSX (CSX 56.54, +0.14) are all scheduled to report following the closing bell.
Dow: +210.95… | Nasdaq: +125.99… | S&P: +27.93…
NASDAQ Adv/Dec 1367/1005. …NYSE Adv/Dec 2009/893.

02:30PM ET

[BRIEFING.COM] Equities are little changed since our last update.

Financials (-0.1%) are taking a step lower into the afternoon with the Regional Banking ETF (KRE 59.74, -0.89, -1.5%) slipping below 3-day support along the $60 level. Ahead of the bell tomorrow banking bellwethers Morgan Stanley (MS 52.96, -0.44, -0.8%) and U.S. Bancorp (USB 50.93, -0.47, -0.9%) are slated to release their first quarter results.

The results from MS and USB round out about a week of earnings from blue chip banking names. Earlier in March, Wells Fargo (WFC 50.69, -0.10, -0.2%), JPMorgan Chase (JPM 110.21, flat), Citigroup (C 69.73, -0.34, -0.5%), and Bank of America (BAC 29.99, +0.06, +0.2%) all reported strong earnings due in part to lower corporate tax rates enjoyed under the Trump administration's recent tax overhaul.
Dow: +216.67… | Nasdaq: +122.65… | S&P: +27.57…
NASDAQ Adv/Dec 1372/1022. …NYSE Adv/Dec 1991/910.

02:00PM ET

[BRIEFING.COM] The major averages are still comfortably within their daily ranges, boasting gains better than 0.9% across the board.

Following a Reuters report, shares of defense names Boeing (BA 336.31, +4.54, +1.4%), Northrop Grumman (NOC 353.23, +1.48, +0.4%), Lockheed Martin (LMT 348.61, +2.91, +0.8%), and General Dynamics (GD 220.79, +2.39, +1.1%) move higher. The report detailed President Donald Trump's personal intervention on behalf of Boeing in a deal which had stalled between the defense contractor and Kuwait.

The report also discussed the Trump administration's initiative to "Buy American." What the initiative would entail is essentially cutting red tape to free up a broader range of weapons while also hastening the rate of approval for certain NATO members.
Dow: +222.71… | Nasdaq: +121.86… | S&P: +26.87…
NASDAQ Adv/Dec 1506/962. …NYSE Adv/Dec 2046/861.

01:35PM ET

[BRIEFING.COM] The major U.S. indices have seen some increased volatility in recent trading but continue to sport strong gains at this time, as the tech sector leads stocks higher this Tuesday.

A look inside the Dow Jones Industrial Average shows that General Electric (GE 13.80, +0.47), UnitedHealth Group (UNH 236.85, +6.53), & Cisco (CSCO 44.52, +1.22) are outperforming. UnitedHealth is one of the Dow's top gainers after the company reported better than expected first quarter results and lifted their 2018 outlook.

Conversely, Goldman Sachs (GS 253.45, -4.43) is the worst-performing Dow component as shares see a sell-the-news reaction to this mornings blowout first quarter results.

For the week, the DJIA is currently up 1.75%.
Dow: +192.37… | Nasdaq: +118.06… | S&P: +26.07…
NASDAQ Adv/Dec 1515/995. …NYSE Adv/Dec 2034/847.

01:05PM ET

[BRIEFING.COM] The equity market is up big for the second day in a row as investors take in another upbeat batch of first quarter earnings. The tech-heavy Nasdaq Composite is the strongest of the three major indices, up 1.7%, while the S&P 500 and the Dow Jones Industrial Average hold gains of around 1.0% apiece. The S&P 500 is trading above its 50-day moving average (2686) for the first time since mid-March.

Shares of Netflix (NFLX 336.80, +29.03) have spiked 9.4% after the streaming media giant smashed subscriber growth estimates for the first quarter, adding a total of 7.41 million subscribers vs estimates of 6.5 million. In addition, Netflix reported slightly better-than-expected Q1 earnings and raised its profit guidance for Q2. Fellow FAANG shares Facebook (FB 168.21, +3.38), Apple (AAPL 178.16, +2.33), Amazon (AMZN 1485.94, +44.44), and Alphabet (GOOG 1069.83, +31.89) are also higher, sporting gains between 1.3% and 3.1%.

Accordingly, the consumer discretionary sector -- which houses Amazon -- and the technology sector -- which houses the rest of the aforementioned names -- are trading atop today's sector standings with gains of 1.7% and 1.9%, respectively. However, the financial space (+0.4%) is struggling to keep pace as Goldman Sachs (GS 253.83, -4.05) weighs; shares of the investment bank are down 1.6% even though the company soundly beat earnings and revenue estimates for the first quarter this morning.

Within the health care sector (+0.7%), Johnson & Johnson (JNJ 130.01, -1.76) is also down following a Q1 earnings and revenue beat, losing 1.4%, but UnitedHealth (UNH 236.91, +6.59) has managed to jump 2.9% on some better-than-expected first quarter profits. Meanwhile, biotechs are strong today, evidenced by the 2.2% increase in the iShares Nasdaq Biotechnology ETF (IBB 107.50, +2.26), which is trading at a three-week high.

In total, 10 of 11 S&P sectors are trading in the green, with gains ranging from 0.2% to 1.9%. The consumer staples sector is the worst-performing group, hovering a tick below its flat line, while the energy sector also underperforms amid a small decline in the price of crude oil; WTI crude futures are down 0.1% at $66.14 per barrel. The American Petroleum Institute will deliver its weekly crude inventory report this afternoon at 4:30 PM ET.

Outside of equities, the Treasury market is mixed this afternoon, with the benchmark 10-yr yield down one basis point at 2.82% and the 2-yr yield up two basis points at 2.39%. The 2s10s spread is now down to 43 basis points, which is its lowest level since 2007. Separately, the COBE Volatility Index (VIX) has dropped 8.0% to 15.23, which is its lowest level in five weeks.

Reviewing Tuesday's economic data, which included March Housing Starts and Building Permits and March Industrial Production and Capacity Utilization:

Housing starts increased to a seasonally adjusted annualized rate of 1.319 million units in March (Briefing.com consensus 1.268 million), up from a revised 1.295 million units in February (from 1.236 million). Building permits rose to a seasonally adjusted 1.354 million in March (Briefing.com consensus 1.315 million) from a revised 1.321 million in February (from 1.298 million).
The key takeaway from the report is that the monthly increases were driven entirely by multi-unit dwellings. Single-family starts were down 3.7% while single-family permits fell 5.5%, which is disappointing given the supply shortage of single-family homes.
Industrial Production increased 0.5% in March (Briefing.com consensus +0.3%), while the February reading was revised to +1.0% (from +0.9%). Meanwhile, Capacity Utilization ticked up to 78.0% (Briefing.com consensus 77.8%) from an unrevised reading of 77.7% in February.
The key takeaway from the report is that all three major industry groups played a part in driving the uptick in industrial production in March.

Dow: +210.76… | Nasdaq: +117.06… | S&P: +26.95…
NASDAQ Adv/Dec 1622/926. …NYSE Adv/Dec 2084/796.

12:30PM ET

[BRIEFING.COM] The major averages have not shifted much since the last update; the S&P 500 is still up a little more than 1.0%.

Financials are struggling to keep pace with the broader market this morning as Goldman Sachs (GS 255.22, -2.66) weighs; the investment bank has dropped 1.0% despite reporting much better-than-expected earnings and revenues for the first quarter this morning. The S&P 500's financial sector is up a relatively weak 0.6%.

In Europe, the major bourses finished Tuesday on a higher note, with Germany's DAX (+1.6%) leading the charge.
Dow: +261.24… | Nasdaq: +126.26… | S&P: +29.87…
NASDAQ Adv/Dec 1779/822. …NYSE Adv/Dec 2144/732.

12:00PM ET

[BRIEFING.COM] Equity indices continue to drift at session highs, sporting gains between 1.0% and 1.6%.

The consumer staples sector (-0.1%) has slipped into negative territory in recent trading. PepsiCo (PEP 108.57, -1.34) is leading the group lower, dropping 1.3%, after analysts at Goldman downgraded shares to 'Sell' from 'Neutral' this morning. Meanwhile, CVS Health (CVS 66.56, +0.46) has extended its Monday rally, adding 0.7%, following news that Amazon (AMZN 1478.63, +37.52) has shelved plans to sell and distribute pharmaceutical products to hospitals.

Elsewhere, the CBOE Volatility Index (VIX 15.49, -1.07) has dropped 6.5% today, hitting a fresh five-week low.
Dow: +246.18… | Nasdaq: +112.50… | S&P: +27.53…
NASDAQ Adv/Dec 1806/804. …NYSE Adv/Dec 2138/733.

11:30AM ET

[BRIEFING.COM] Stocks continue ticking higher, pushing the S&P 500 1.1% above its Monday close.

All 11 S&P 500 sectors are trading in the green, including financials (+0.6%), consumer discretionary (+1.7%), industrials (+1.1%), energy (+0.3%), materials (+1.1%), technology (+1.9%), health care (+0.7%), consumer staples (+0.1%), utilities (+0.9%), telecom services (+0.5%), and real estate (+1.7%).

In the bond market, U.S. Treasuries are mixed, with the 2-yr note showing relative weakness; the yield on the 2-yr Treasury note is up three basis points at 2.40%, while the yield on the benchmark 10-yr Treasury note is flat at 2.83%.
Dow: +272.14… | Nasdaq: +118.37… | S&P: +30.10…
NASDAQ Adv/Dec 1890/774. …NYSE Adv/Dec 2176/672.

11:00AM ET

[BRIEFING.COM] The S&P 500, the Dow, and the Nasdaq are hovering at session highs, sporting gains between 1.0% and 1.4%. The tech-heavy Nasdaq shows relative strength as tech shares outperform.

Netflix (NFLX 331.74, +23.99) is leading the technology sector (+1.6%) higher, rallying 7.8%, after impressing investors with its subscriber growth for the first quarter. Meanwhile, mega caps Apple (AAPL 177.74, +1.92), Facebook (FB 167.46, +2.63), and Alphabet (GOOG 1065.12, +27.14) are sporting gains between 1.1% and 2.7%.

Over in the consumer discretionary sector (+1.6%), another FAANG name -- Amazon (AMZN 1477.47, +35.97) -- is also outperforming with a gain of 2.5%. Today's advance has put AMZN shares right at their 50-day simple moving average (1481).
Dow: +263.20… | Nasdaq: +98.50… | S&P: +26.87…
NASDAQ Adv/Dec 1951/744. …NYSE Adv/Dec 2138/672.

10:35AM ET
[BRIEFING.COM]

Commodities are beginning the day lower
Overall, commodities, as measured by the Bloomberg Commodity Index, are currently -0.2% at 88.9040
Dollar index is currently +0.3% at 89.38
Looking at energy...
May WTI crude oil futures are now +$0.10 at $66.23/barrel
In other energy, May natural gas is -0.01 at $2.74/MMBtu
Moving on to metals...
June gold is currently -$6.70 at $1344.00/oz, while May silver is -$0.01 at $16.67/oz
May copper is now -$0.02 at $3.07/lb

Dow: +211.59… | Nasdaq: +81.11… | S&P: +21.18…
NASDAQ Adv/Dec 1917/744. …NYSE Adv/Dec 2044/713.

10:00AM ET

[BRIEFING.COM] Stocks are still solidly higher this morning, with the S&P 500 up 0.8%.

Goldman Sachs (GS 257.47, -0.46, -0.2%) has slipped into negative territory in recent trading despite crushing first quarter earnings and revenue estimates. However, the heavily-weighted financial sector (+0.8%) has held up well despite Goldman's underperformance, keeping in line with the broader market.

Meanwhile, Netflix (NFLX 326.39, +18.64) is up 6.1%, extending its 2018 gain to 70.0%, after smashing estimates for subscriber growth last quarter, reporting a net increase of 7.41 million subscribers vs estimates of 6.50 million.
Dow: +244.33… | Nasdaq: +78.61… | S&P: +22.01…
NASDAQ Adv/Dec 1882/860. …NYSE Adv/Dec 1947/738.

09:40AM ET

[BRIEFING.COM] The major averages are trading higher this morning, sporting gains between 0.6% and 0.9%.

Most sectors are trading in the green, with consumer discretionary (+1.1%) and information technology (+0.9%) leading the charge. The energy sector (-0.2%), however, is down, moving in tandem with the price of crude oil; WTI crude futures are down 0.8% at $65.67 per barrel.
Dow: +206.43… | Nasdaq: +63.16… | S&P: +16.80…
NASDAQ Adv/Dec 1831/866. …NYSE Adv/Dec 1780/805.

09:18AM ET
[BRIEFING.COM] S&P futures vs fair value: +21.30. Nasdaq futures vs fair value: +74.80.

The equity market is on course for a solidly higher open, as the S&P 500 futures trade 21 points, or 0.8%, above fair value.

Netflix (NFLX 330.00, +22.22) is leading the post-earnings advancers this morning, up 7.1%, after smashing estimates for subscriber growth last quarter, beating earnings estimates, and issuing upbeat guidance. Goldman Sachs (GS 260.61, +2.73), Johnson & Johnson (JNJ 133.05, +1.29), and UnitedHealth (UNH 236.09, +5.77) are also trading higher, up between 1.0% and 2.5%, after beating Q1 profit estimates; Goldman Sachs and Johnson & Johnson also beat sales estimates.

Investors received several pieces of data this morning, including March Industrial Production and Capacity Utilization, which were just released. Industrial Production increased 0.5% in March (Briefing.com consensus +0.3%), while the February reading was revised to +1.0% (from +0.9%). Meanwhile, Capacity Utilization ticked up to 78.0% (Briefing.com consensus 77.8%) from an unrevised reading of 77.7% in February.

Separately, Housing starts increased to a seasonally adjusted annualized rate of 1.319 million units in March (Briefing.com consensus 1.268 million), down from a revised 1.295 million units in February (from 1.236 million). Building permits rose to a seasonally adjusted 1.354 million in March (Briefing.com consensus 1.315 million) from a revised 1.321 million in February (from 1.298 million).

Meanwhile, U.S. Treasuries are modestly lower this morning, pushing the benchmark 10-yr yield up one basis point to 2.84%, WTI crude futures are down 0.5% at $65.86 per barrel, and the U.S. Dollar Index is up 0.2% at 89.28.

08:50AM ET
[BRIEFING.COM] S&P futures vs fair value: +20.00. Nasdaq futures vs fair value: +75.30.

The S&P 500 futures are trading 20 points, or 0.8%, above fair value.

Equity indices in the Asia-Pacific region remained on the mixed side of things in Tuesday's trading, with Chinese markets continuing their underperformance. The Shanghai Composite dropped 1.4%, registering its fourth straight decline on the heels of a mixed batch of economic data that included an in-line 6.8% year-over-year increase in Q1 GDP. A Wall Street Journal article highlighting the possibility of the U.S. imposing more trade restrictions on technology firms weighed on sentiment, as did the news of the U.S. banning U.S. suppliers from doing business with ZTE Corp. Separately, minutes from the Reserve Bank of Australia meeting suggested the next rate move, when it happens, is more likely to be up than down; the Hong Kong Monetary Authority is said to have bought Hong Kong dollars to keep the currency within its trading band; Reuters reports China is planning to lift foreign ownership restrictions on auto ventures within four years; and there are reports suggesting North Korea and South Korea are talking about declaring an official end to their war.

In economic data:
China's Q1 GDP +1.4% quarter-over-quarter (expected +1.5%; prior +1.6%); +6.8% year-over-year (expected +6.8%; prior +6.8%)
China's March industrial production +6.0% year-over-year (expected +6.4%; prior +7.2%)
China's March retail sales +10.1% year-over-year (expected +9.7%; prior +9.7%)
China's March fixed asset investment +7.5% year-over-year (expected +7.7%; prior +7.9%)
Japan's February industrial production 0.0% month-over-month (expected +4.0%; prior +4.1%); February capacity utilization +1.3% month-over-month (expected -0.3%; prior -3.8%)

---Equity Markets---

Japan's Nikkei gained 0.06% in a mixed day of trading action. Chiyoda Corp (+5.3%) led all gainers and was followed by Familymart (+3.9%), Meiji Holdings (+3.3%), Toho (+3.2%), and Showa Denko (+2.0%). The biggest losers were Shinsei Bank (-3.0%), Mitsubishi Estate (-2.8%), Kyowa Hakko Kirin (-2.7%), Tokuyama Corp (-2.1%), and Fuji Electric (-2.1%).
Hong Kong's Hang Seng declined 0.8%, finishing near its lows for the session. The majority of its components closed with a loss. Sunny Optical Technology, AAC Technologies, China Mengniu Dairy, Geely Automobile, and Country Garden Holdings fell between 2.4% and 5.8%. The Bank of E Asia, Sands China, Hang Seng Bank, and CNOOC provided some offsettig support with gains between 1.6% and 1.9%.
China's Shanghai Composite lost 1.4% and also went out near its lows for the session, trading poorly following a mixed batch of economic data and press reports highlighting the possibility of the U.S. imposing more trade restrictions on technology firms. Mining and basic materials stocks were among the notable laggards. Eagle Mining (-8.9%), China Molybdenum (-6.3%), and China Hainan Rubber Industry Group (-5.4%) were big losers among the more actively-traded stocks.
India's Sensex added 0.3% and ended near its highs for the day. Power Grid (+2.9%), NTPC (+2.0%), Hindustan Unilever (+1.8%), ICICI Bank (+1.5%), and ITC (+1.2%) topped the list of winners. AXIS Bank (-1.8%), Sun Pharmaceutical Industries (-1.3%), and Adani (-1.2%) brought up the rear.

Major European indices are trading with a positive bias, supported by Wall Street's positive showing on Monday and some headlines contributing to a belief the ECB isn't in a rush to abandon its accommodative policy stance. To that end, ECB chief economist Praet acknowledged an ample degree of policy stimulus is still necessary while Germany's ZEW Economic Sentiment Index for April checked in much weaker than expected, with trade concerns reportedly acting as a key drag.

In economic data:
Eurozone's ZEW Economic Sentiment 1.9 (expected 7.3; prior 13.4)
Germany's April ZEW Economic Sentiment -8.2 (expected -0.8; prior 5.1)
Italy's March CPI +0.3% month-over-month (expected +0.4%; prior +0.4%); +0.8% year-over-year (expected +0.9%; prior +0.9%)
Italy's February trade balance $3.104 billion (expected $2.230 billion; prior -$0.092 billion)
UK's February unemployment rate 4.2% (expected 4.3%; prior 4.3%); 3M/3M employment change 55.0K (expected 55.0K; prior 168.0K)
UK's February average earnings index plus bonus +2.8% (expected +3.0%; prior +2.8%)
UK's March claimant count change 11.6K (expected 13.3K; prior 15.1K)

---Equity Markets---

Germany's DAX is up 1.0%, led by gains in Linde (+2.4%), Bayer (+1.9%), Continental AG (+1.6%), Fresenius ST (+1.2%), and RWE AG (+1.7%). Only one stock is down at this time -- Merck (-0.8%).
France's CAC is up 0.6%, underpinned by leadership from Publicis Groupe (+2.3%), Peugeot (+2.3%), Carrefour (+1.0%), and AXA (+1.3%). A handful of components are trading lower, but none with a loss of more than 1.0%. Vivendi is the biggest loser, down 0.9%.
UK's FTSE is up 0.2%. Associated British Foods, Travis Perkins, WPP, GKN, and Next are up between 1.7% and 4.0%. Reckitt Benckiser, Rolls Royce, and Capita are the biggest laggards, sporting losses between 1.0% and 3.3%.


08:34AM ET
[BRIEFING.COM] S&P futures vs fair value: +20.00. Nasdaq futures vs fair value: +72.80.

The S&P 500 futures are trading 20 points, or 0.8%, above fair value.

Just in, Housing starts increased to a seasonally adjusted annualized rate of 1.319 million units in March (Briefing.com consensus 1.268 million), down from a revised 1.295 million units in February (from 1.236 million). Building permits rose to a seasonally adjusted 1.354 million in March (Briefing.com consensus 1.315 million) from a revised 1.321 million in February (from 1.298 million).

07:56AM ET
[BRIEFING.COM] S&P futures vs fair value: +17.50. Nasdaq futures vs fair value: +64.50.

The stock market kicked off the week on a positive note yesterday and looks ready to continue rallying this morning, as investors shift their attention away from geopolitics to first quarter earnings. The S&P 500 futures are currently trading 18 points, or 0.7%, above fair value.

Shares of Netflix (NFLX 329.45, +21.67) have surged 7.0% in pre-market trading after the streaming media company smashed estimates for subscriber growth in the first quarter, reporting a net increase of 7.41 million subscribers vs estimates of 6.50 million. First quarter earnings were slightly better than expected for Netflix, and the company raised its profit guidance for Q2.

Dow components Goldman Sachs (GS 260.90, +3.02), Johnson & Johnson (JNJ 132.93, +1.17), and UnitedHealth (UNH 235.00, +4.68) are also in focus after reporting their first quarter earnings, all of which came in better than expected. Shares of the three companies are up between 0.9% and 2.0% in pre-market trading.

Looking ahead, IBM (IBM 158.90, +1.01), United Continental (UAL 68.00, +0.69), and CSX (CSX 56.41, 0.00) will report following today's closing bell.

Outside of the equity market, U.S. Treasuries are a tick lower this morning, pushing yields higher across the curve; the benchmark 10-yr yield is up one basis point at 2.84%. Meanwhile, the U.S. Dollar Index is flat at 89.16 and WTI crude futures are also flat, hovering at $66.25 per barrel.

Investors will receive several pieces of economic data this morning, including March Housing Starts (Briefing.com consensus 1268K) and Building Permits (Briefing.com consensus 1315K) -- which will be released at 8:30 AM ET -- and March Industrial Production (Briefing.com consensus +0.3%) and Capacity Utilization (Briefing.com consensus 77.8%) -- which will cross the wires at 9:15 AM ET.

In U.S. corporate news:

Netflix (NFLX 329.45, +21.67): +7.0% after smashing subscriber growth estimates for the first quarter. The company also beat Q1 earnings estimates and raised its guidance.
Goldman Sachs (GS 260.90, +3.02): +1.2% after crushing first quarter earnings and revenue estimates.
Johnson & Johnson (JNJ 132.93, +1.17): +0.9% after reporting better-than-expected earnings and revenues for Q1 and raising its sales guidance for FY18.
UnitedHealth (UNH 235.00, +4.68): +2.0% after beating Q1 earnings estimates.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region remained on the mixed side of things in Tuesday's trading, with Chinese markets continuing their underperformance. Japan's Nikkei +0.1%, Hong Kong's Hang Seng -0.8%, China's Shanghai Composite -1.4%, India's Sensex +0.3%.
In economic data:
China's Q1 GDP +1.4% quarter-over-quarter (expected +1.5%; prior +1.6%); +6.8% year-over-year (expected +6.8%; prior +6.8%)
China's March industrial production +6.0% year-over-year (expected +6.4%; prior +7.2%)
China's March retail sales +10.1% year-over-year (expected +9.7%; prior +9.7%)
China's March fixed asset investment +7.5% year-over-year (expected +7.7%; prior +7.9%)
Japan's February industrial production 0.0% month-over-month (expected +4.0%; prior +4.1%); February capacity utilization +1.3% month-over-month (expected -0.3%; prior -3.8%)
In news:
A Wall Street Journal article highlighting the possibility of the U.S. imposing more trade restrictions on technology firms weighed on sentiment, as did the news of the U.S. banning U.S. suppliers from doing business with ZTE Corp.
Minutes from the Reserve Bank of Australia meeting suggested the next rate move, when it happens, is more likely to be up than down.
The Hong Kong Monetary Authority is said to have bought Hong Kong dollars to keep the currency within its trading band.
Reuters reports China is planning to lift foreign ownership restrictions on auto ventures within four years.
There are reports suggesting North Korea and South Korea are talking about declaring an official end to their war.

Major European indices are trading with a positive bias, supported by Wall Street's positive showing on Monday and some headlines contributing to a belief the ECB isn't in a rush to abandon its accommodative policy stance. Germany's DAX +0.8%, France's CAC +0.4%, UK's FTSE +0.2%.
In economic data:
Eurozone's ZEW Economic Sentiment 1.9 (expected 7.3; prior 13.4)
Germany's April ZEW Economic Sentiment -8.2 (expected -0.8; prior 5.1)
Italy's March CPI +0.3% month-over-month (expected +0.4%; prior +0.4%); +0.8% year-over-year (expected +0.9%; prior +0.9%)
Italy's February trade balance $3.104 billion (expected $2.230 billion; prior -$0.092 billion)
UK's February unemployment rate 4.2% (expected 4.3%; prior 4.3%); 3M/3M employment change 55.0K (expected 55.0K; prior 168.0K)
UK's February average earnings index plus bonus +2.8% (expected +3.0%; prior +2.8%)
UK's March claimant count change 11.6K (expected 13.3K; prior 15.1K)
In news:
ECB chief economist Praet acknowledged an ample degree of policy stimulus is still necessary while Germany's ZEW Economic Sentiment Index for April checked in much weaker than expected, with trade concerns reportedly acting as a key drag.

07:31AM ET
[BRIEFING.COM] S&P futures vs fair value: +15.80. Nasdaq futures vs fair value: +59.00.

06:56AM ET
[BRIEFING.COM] S&P futures vs fair value: +17.80. Nasdaq futures vs fair value: +62.50.

06:56AM ET
[BRIEFING.COM] Nikkei...21848...+12.10...+0.10%. Hang Seng...30063...-252.80...-0.80%.

06:56AM ET
[BRIEFING.COM] FTSE...7214.63...+16.40...+0.20%. DAX...12499.07...+107.70...+0.90%.

04:30PM ET

[BRIEFING.COM] Investors breathed a sigh of relief on Monday, pushing stocks solidly higher, after a U.S.-led strike on Syria over the weekend turned out to be less dramatic than many had feared.

The S&P 500 finished higher by 0.8% at 2677.84 after getting rejected at its 50-day moving average (2687). The Dow Jones Industrial Average and the Nasdaq Composite also finished a step below their 50-day moving averages, adding 0.9% and 0.7%, respectively.

U.S., U.K., and French forces carried out a much-anticipated missile attack against the Syrian government late Friday, targeting three sites associated with the production of chemical weapons following a suspected poison gas attack against the rebel-held town of Douma on April 7. Russian President Vladimir Putin -- who supports the Syrian government -- condemned the attack, saying additional strikes could invite chaos in global affairs, but made no mention of a military response to this particular incident -- giving the impression that it's now in the rear-view mirror.

That realization proved to be a positive for the equity market, but didn't bode so well for crude oil, which surged more than 8.0% last week on the bet that heightened tensions in the oil-rich Middle East would lead to a slowdown in production; West Texas Intermediate crude futures slid 1.6% to $66.18 per barrel. However, the energy sector, which typically moves in tandem with the price of crude oil, rallied 1.0%.

All 11 S&P sectors finished Monday in positive territory, with gains ranging from 0.4% to 1.5%. Lightly-weighted groups populated the top and bottom of the sector standings, with telecom services (+1.5%), utilities (+1.4%), and materials (+1.4%) closing at the top, and real estate (+0.4%) closing at the bottom. The heavily-weighted financial space (+0.5%) was the second-worst performer.

In corporate news, drug retailers CVS Health (CVS 66.10, +2.67) and Walgreens Boot Alliance (WBA 66.22, +2.40) rallied 4.2% and 3.8%, respectively, following a CNBC report that internet retail giant Amazon (AMZN 1441.50, +10.71) has shelved plans to sell and distribute pharmaceutical products to hospitals. Separately, Merck (MRK 58.65, +1.48) and Bristol-Myers (BMY 54.08, -4.57) both reported better-than-expected clinical trial results for their respective cancer treatments, but Merck surpassed expectations even more so than Bristol. Merck shares jumped 2.6%, while Bristol shares tumbled 7.8%.

On the earnings front, Bank of America (BAC 29.93, +0.13) struggled early after reporting above-consensus first quarter earnings ahead of Monday's opening bell, but eventually finished up 0.4%. Financial peer Charles Schwab (SCHW 53.08, +2.04) soared 4.0% after also beating bottom-line estimates for Q1. Moving to transports, JB Hunt (JBHT 119.75, +6.98) jumped 6.2% after beating both earnings and revenues estimates for the first quarter, helping to fuel a broad transport rally; the Dow Jones Transportation Average finished Monday higher by 2.3%.

In the bond market, U.S. Treasuries ended Monday slightly lower, which was a minor victory in light of the larger losses posted overnight. The 2-yr yield flirted with 2.40% before closing flat at 2.37%, while the benchmark 10-yr yield flirted with 2.87% before closing with a one basis point gain at 2.83%.

Reviewing Monday's economic data, which included Retail Sales for March, the Empire State Manufacturing Survey for April, Business Inventories for February, and the NAHB Housing Market Index for April:

March retail sales increased 0.6% (Briefing.com consensus +0.4%). The prior month's reading was left unrevised at -0.1%. Excluding autos, retail sales increased 0.2%, as expected. The prior month's increased was left unrevised at 0.2%.
The key takeaway from the report is that March stopped a streak of three consecutive monthly declines in retail sales, although it also demonstrates that consumers continue to show some restraint in discretionary spending.
The Empire Manufacturing Survey for April declined to 15.8 (Briefing.com consensus 20.0) from the prior month's unrevised reading of 22.5.
Business Inventories increased 0.6% in February (Briefing.com consensus +0.6%). The January reading was left unrevised at +0.6%.
The key takeaway from the report is that inventory growth outpaced sales growth, as inventories increased for manufacturers (+0.3%), retailers (+0.4%), and merchant wholesalers (+1.0%).
The NAHB Housing Market Index for April decreased to 69 (Briefing.com consensus 70) from an unrevised reading of 70 in March.

On Tuesday, investors will receive March Housing Starts (Briefing.com consensus 1268K) and Building Permits (Briefing.com consensus 1315K) at 8:30 AM ET and March Industrial Production (Briefing.com consensus +0.3%) and Capacity Utilization (Briefing.com consensus 77.8%) at 9:15 AM ET.

Nasdaq Composite: +3.7% YTD
Russell 2000: +1.8% YTD
S&P 500: +0.2% YTD
Dow Jones Industrial Average: -0.6% YTD

Dow: +212.90… | Nasdaq: +49.63… | S&P: +21.54…
NASDAQ Adv/Dec 1184/1009. …NYSE Adv/Dec 2134/808.

Special thanks to Bloomberg, Briefing, Reuters and Yahoo! Finance for their market summaries. Also, thank you for the review of TheStrategyLab performance record...hopefully the links and data will be useful for you.

Price Action Trading @ http://www.thestrategylab.com/price-action-trading.htm

Trade Strategies via Volatility Analysis @ http://www.thestrategylab.com/VolatilityTrading.htm

Rebuttal to Emmett Moore via TheStrategyLab.com Review @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=84&t=3167

The Strategy Lab: Valforex - The Manipulative Review Scam @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=84&t=3676

TheStrategyLab Review @ http://www.thestrategylab.com/thestrategylab-reviews.htm

Advance WRB Analysis Tutorial Chapters 4 - 12 @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm

Disclaimer: Today's trading performance is not an indication of my future performance and not an indication of the future performance for any trader that decides to learn/apply WRB Analysis. The risk of loss can be substantial. Therefore, you must carefully consider if trading is suitable for you within the context of your financial condition. TheStrategyLab.com is an education and research site. The resources on this site are provided for informational purposes only and should not be used to replace professional educational and professional research because we are retail traders only. TheStrategyLab.com does not accept liability for your use of the website and its resources.

We make no guarantees of success and your level of success is dependent upon other factors including your skill as a trader, knowledge, financial condition, market conditions and other factors. Trading is stressful and you should always consult a doctor in all matters relating to physical and mental health of you & your family because trading can impact beyond your financial condition regardless if you're a profitable or losing trader. Also, you can read our full disclaimer statement @ http://www.thestrategylab.com/Disclaimer.htm

Best Regards,
M.A. Perry
Online user name wrbtrader (more info about me) @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=127&t=850 & http://www.thestrategylab.com/wrbtrader.htm
TheStrategyLab Price Action Trading (no indicators)
Trader and Founder of WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader @ http://stocktwits.com/wrbtrader

http://www.thestrategylab.com
Phone: +1 708 572-4885
TheStrategyLab Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
wrbanalysis@gmail.com