Equities Roundup: Off Early Lows, Bank Shares Outperforming

Stocks have recovered from midmorning lows, near middle of narrow range. S&P E-Mini Future currently up 2.75 points (0.07%) at 4141; Nasdaq up 40.7 points (0.3%) at 12325.02; DJIA down 2.32 points (-0.01%) at 33298.79.

• Stocks had ignored this morning's weaker than expected Empire Mfg index (-31.8 (cons -4.0) in May from +10.8) and generally hawkish comments from Atlanta Fed Bostic (nonvoter) on sticky inflation. Stocks extended lows after the bell, apparently fixated on downbeat assessment from House sp McCarthy over the debt ceiling.
• Leading laggers: Utilities, Consumer Staples and Health Care sectors underperformed while Financials, industrials and Energy shares outperformed.
• From a technical point of view S&P E-minis remain in consolidation mode and continue to trade above the 50-day EMA, which intersects at 4107.61.
  
• An extension higher would refocus attention on key resistance and the bull trigger at 4206.25, the May 1 high. A break of this level would confirm a resumption of the bull trend that started Mar 13.
• Key support has been defined at 4062.25, the May 4 low. A move through this support would instead highlight a bearish threat.