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Equities Roundup: Industrials, Communication Services Outperforming

US STOCKS
  • Stocks are holding near steady to modestly higher at midday, little off first half highs as stocks recover nearly half the ground lost in Tuesday's post-CPI selloff. Mild risk on tone gained momentum overnight after UK CPI miss (tempered by EU IP strength notably in Ireland). Currently, the DJIA is down 2.63 points (-0.01%) at 38273.35, S&P E-Minis up 14.25 points (0.29%) at 4986, Nasdaq up 75.9 points (0.5%) at 15731.63.
  • Leading gainers: Industrials and Communication Services sectors outperformed in the first half, ground transportation shares buoyed the former: Uber +11.07% after announcing a $7B share buyback overnight, Old Dominion +1.47%, Norfolk Southern +1.24%. Media and entertainment shares supported the Communication Sector: Netflix +2.58%, Electronic Arts +1.88%, Meta +1.40%.
  • Laggers: Consumer Staples and Energy sectors underperformed in the first half, food and beverage shares weighed on the former: Kraft Heinz -6.30%, Campbell Soup -3.45%, JM Smucker -2.25%. Reversing prior session gains, Oil and gas shares weighed on the Energy sector: EQT Corp -4.41%, Williams Cos -3.80%, Valero -2.28%.
  • Looking ahead: corporate earnings expected after the close: American Water Works, Equinix, Rollins Inc, Occidental Petroleum, Albemarle Corp, Cisco Systems, TripAdvisor Inc, Altice USA Inc.

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