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Equities Update: Weaker, Off Lows Following January CPI Rise

US STOCKS
  • Stocks remain weaker, but are gradually climbing off lows ahead midday. Broad based risk-off followed after higher than expected January CPI data weighed on stocks and rates as hopes of rate cuts this year withered. Currently, the DJIA is down 436.35 points (-1.12%) at 38359.49, S&P E-Minis down 59 points (-1.17%) at 4981.75, Nasdaq down 210.7 points (-1.3%) at 15730.87.
  • Laggers: Real Estate and Utilities sectors underperformed in the first half, estate management shares weighed on the former: CBRE Group -3.59%, CoStar Group -2.64%. Independent power and water companies weighed on the Utilities sector: AES Corp -5.75%, American Water Works -3.1%.
  • Leading gainers: Health Care and Energy sectors outperformed in the first half, equipment and services companies buoyed the former: McKesson +1.865. Molina Healthcare +1.19%, Dexcom +1.17%. Oil and gas shares supported the Energy sector early Tuesday: Phillips-66 +0.87%, Marathon Petroleum +0.53% while Targa Resources gained 0.34%.
  • Looking ahead: corporate earnings expected after the close: Welltower Inc, Robinhood Markets, GoDaddy Inc, AIG, Airbnb, MGM Resorts, Zillow, Lyft, Topgolf Callaway.

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