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Equities Roundup: Chip Makers Support IT Rebound

US STOCKS
  • Stocks indexes are making modest gains after the cash open, renewed support for semiconductor stocks behind the latest support in S&P E-Mini futures up 18.75 points (0.43%) at 4401.5, Nasdaq up 126.4 points (1%) at 13418.1. Dow weaker at the moment after posting gains earlier, DJIA down down 3.16 points (-0.01%) at 34505.09.
  • Leading gainers: Information Technology, Consumer Discretionary and Energy sectors are outperforming in early trade. Chip stocks buoying IT and outperforming software/hardware makers. Leaders include Palo Alto Networks +14.15%, Nvidia +2.55%, Fortinet +2%.
  • Autos lead Consumer Discretionary with Tesla bouncing +2.9% after trading weaker last Friday, parts maker Aptiv +1.65%, BorgWarner +1.05%, Ford +.65%. Energy sector supported more by equipment and services: Schlumberger +1.05%, Halliburton +.6%, Baker Hughes +.35%.
  • Laggers: Utilities, Real Estate and Consumer Staples underperforming, electric and multi-utility shares weighing on the former: Dominion -.55%, Duke Energy -.5%, AES -.4%. Office and hotel/resort Real Estate Investment Trust shares weighed on Real Estate: Alexandria R/E Equities -.95%, Boston Properties -.8%, Host Hotels -.2%.
  • Technicals: A bearish theme in the E-mini S&P contract remains intact and Friday’s sell-off reinforces this theme. Last week’s extension lower resulted in a break of the 50-day EMA and the contract breached channel support drawn from the Mar 13 low. 4368.50, the Jun 26 low, was breached Friday and attention turns to 4344.28, a Fibonacci retracement. Initial firm resistance to watch is at the 50-day EMA - at 4455.92.

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