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Equities Roundup: MSFT Acquisition of Activision Goes Forward

  • Despite data risk tied to Wed's CPI inflation measure, stocks are extending moderate session highs heading into noon, DJIA is currently up 238.22 points (0.7%) at 34182.16, S&P E-Mini Future up 18 points (0.41%) at 4462, Nasdaq up 41.1 points (0.3%) at 13727.02.
  • Leading gainers: Energy, Communication Services and Industrials are outperforming, the former on the back of strong crude prices (WTI +1.70 at 74.69). Equipment and Servicer shares leading w/ Haliburton + 3.2%, Schlumberger +2.15% and Baker Hughes +1.70%.
  • Media and Entertainment shares buoying Communication Services with Activision +10% as courts allow Microsoft acquisition to go forward -- barring FTC injunction. Other leading gainers: Electronic Arts +4.55%, Paramount Global +3.40% and Omnicom Grp +2.75%.
  • Laggers: Information Technology and Consumer Staples underperformed, semiconductor shares weighing on IT: Applied Materials -4.5%, KLA Corp -3.1%, Advanced Micro Devices -3.0%. As to Consumer Staples, household products lagged and personal..
  • The technical/bull theme in S&P E-minis bull theme remains intact. Attention is on the first support 4415.05, the 20-day EMA. Clearance of this level would strengthen a bearish threat and expose 4368.50, the Jun 26 low and a key support. The bull trigger is at 4498.00, the Jun 16 high. A clear breach of this level would confirm a resumption of the uptrend and open 4532.08, a Fibonacci projection.

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