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Equities Roundup: Paring Early Gains, Earnings Cycle Accelerating

US STOCKS
  • Stocks are trading modestly higher for the most part after midday, Nasdaq shares off midday highs to marginally weaker at the moment. Currently, Nasdaq is down 24.4 points (-0.2%) at 14329.09, S&P E-Mini Future are up 2.75 points (0.06%) at 4590.25, DJIA up 94.88 points (0.27%) at 35045.93.
  • Leading gainers: Real Estate, Utilities and Consumer Staples. Real Estate shares buoyed by Office, Health Care and Specialized REITs while Food and Beverage shares helped Consumer staples on the day, Constellation Brand shares up 5.6%.
  • Laggers: Materials, Information Technology and Industrials. Miners weighed on Materials: Steel Dynamics -3.5%, Nucor -2.55%. Software and Services weighed on IT Sector, profit taking in Microsoft after strong gains Tue, MSFT currently -1.75%.
  • Technicals for SPX Eminis: Moving averages continue to underpin the underlying bull trend, with envelope resistance sitting just above the Wednesday high at 4601.70. The bull channel top has been breached, underscoring the momentum shift in this week’s rally and making the 4631.00 upside level a more realistic prospect in the near-term. Nonetheless, the RSI has now tipped into overbought territory, signalling a slowing of the uptrend could dominate to alleviate the condition over the coming few sessions. Any corrective pullback would initially target the 20-day EMA at 4482.32 for support.
  • Earnings after today's close: Zions Bancorp, Discover, Netflix, IBM, Alcoa, Crown Castle, Equifax, Tesla, United Airlines. Early Thursday sees earnings from Fifth Third, J&J, KeyCorp, Travelers, Newmont, Freeport-McMoRan, Abbott Labs, AA, Philip Morris, Blackstone and Capital One.

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