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Equities Roundup: Utilities, Energy and Materials Underperforming

US STOCKS
  • Stocks are are inching lower at midday, DJIA underperforming: down 245.03 points (-0.73%) at 33263.99, S&P E-Mini Future down 23.5 points (-0.54%) at 4302, Nasdaq up 20.5 points (0.2%) at 13239.62.
  • Laggers: Utilities, Energy and Materials sectors underperforming, independent power and electricity providers weighing on the former: NextEra -9.5%, PG&E -6.25%, AES -6.15%. Oil and gas providers weighed on the Energy sector: Marathon Oil -4.56%, EQT -4%, APA Corp -3.9%. Meanwhile, metal and mining shares weighed on Materials with gold trading weaker (-16.64 at 1831.99): Newmont -4.3%, Freeport-McMoran -2.55%.
  • Leaders: Communication Services and Information Technology outperformed, media and entertainment share buoyed the former: Live Nation +2.25%, Google +2%, Meta +1.5%. Meanwhile, software and semiconductor stocks helped support IT sector again: Nvidia +2.66%, Lam Research +1.17%, Applied Materials +1%.
  • Technicals: A bear cycle in S&P E-minis remains in play and the contract is trading closer to its recent lows. The recent break of support at 4397.75, the Aug 18 low, reinforced bearish conditions and signals scope for a continuation lower. Sights are on 4242.15, a Fibonacci retracement point. Initial firm resistance is 4467.07, the 50-day EMA. Ahead of the 50-day average is resistance at 4399.00, the Sep 22 high, and 4425.05, the 20-day EMA.

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