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Equities Roundup: Airlines, Banks Outperforming

US STOCKS
  • Stocks are holding to a narrow range at midday, a few dollars either side of steady as markets await the latest FOMC policy announcement this afternoon. Currently, S&P E-Minis trades down 2.25 points (-0.04%) at 5239.5, Nasdaq down 9.5 points (-0.1%) at 16157.15, DJIA up 16.25 points (0.04%) at 39124.93.
  • Leading Gainers: Industrials and Financial sectors outperformed, with airline stocks supporting the former: American Airlines gained 2.84% after a UBS upgrade, followed by Delta +2.65% and United +2.55%. Bank shares buoyed the Financial sector: Fifth Third +1.21%, US Bancorp, USB and M&T Bancorp all +1.15%, while KeyCorp gained 1.0%.
  • Laggers: Health Care and Energy sectors underperformed in the first half, pharmaceutical and biotech shares weighed on the former: Moderna -2.52%, AbbVie and Zoetis -1.24%, Danaher -1.20%. Oil and gas stocks traded weaker as crude prices remained under pressure at midday (WTI -1.70 at 81.77): Hess -1.75%, Chevron -1.26%, Diamondback Energy -1.0%.
  • The trend condition in S&P E-Minis remains bullish. Recent fresh cycle highs, reinforce current conditions and note that price action continues to highlight the fact that corrections remain shallow. This is an important bullish signal, reflecting positive market sentiment. Support to watch is 5175.27 the 20-day EMA. A clear break of this EMA would open 5065.11, the 50-day EMA. Sights are on 5300.00 next.

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