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Equities Roundup: Real Estate, Communication Services Lead Rally

  • Stocks are trading mildly higher after midday, near the middle of the session range, a relatively quiet start to the week with London out for a bank holiday. Currently, S&P E-Mini futures are up 28.75 points (0.65%) at 4442.75, Nasdaq up 110.5 points (0.8%) at 13700.4, DJIA up 237.5 points (0.69%) at 34585.55.
  • Leading gainers: Real Estate, Communication Services and Materials sectors outperformed Monday, management and development shares supporting the former with CBRE Group +1.6%, CoStar Group +.95%.
  • Media and entertainment shares led Communication Services with Warner Bros +2.7%, Charter Communication +2.56%, Paramount +1.2%. Meanwhile Materials led by metals and mining shares: Newmont +1.9%, Freeport McMoRan +1.5%.
  • Laggers: Utilities, Health Care and Consumer Discretionary lagged the modest week opener rally. Gas companies weighed on Utilities sector: ATO -1.05%, CMS Energy -1.8%. Health Care: Pharmaceuticals lagged equipment and services: JNJ -1.52%, Merck -1.1% and Bristol Myers -0.95%. Tesla receded 0.7% after making strong gains late last week.
  • Technicals: A sharp sell-off on Aug 24 in the E-mini S&P contract reinforces a bearish theme and signals the end of the Aug 18 - 24 corrective bounce. Short-term gains are considered corrective and attention is on support at 4350.00, the Aug 18 low and bear trigger. A break would confirm a resumption of the current bear cycle. Resistance to watch is 4504.75 - the base of a bull channel, drawn from the Mar 13 low - that was breached on Aug 16.

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