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Equity Roundup: Banks Weaker; Earnings Resume Next Week

US STOCKS
Equity indexes held moderately weaker, near midday lows on relatively narrow session ranges as markets continued to digest Wednesday evening's March FOMC minutes release. Two items of note to keep mind of:
    • 1) Bank shares taking a beating as global sanctions against Russia for war in Ukraine -- may be weighing on large global systemically important banks (GSIBS) as many start writing off Russia. Yield curve collapses into inversion (recession flag despite modest overall bounce this week) playing havoc on holdings.
    • 2) Upcoming earnings season arrives next week with prospect of unwelcome news due to point #1.
  • Meanwhile, S&P eminis currently trading -19.25 (-0.43%) at 4456.25 vs. 4448.50 session low -- above key support of 4444.5: 50-day EMA. A clear break would strengthen a bearish case and allow for a deeper pullback that would open 4425.96 initially, a Fibonacci retracement.
  • On the flipside, a resumption of gains and an ability to remain above the 50-day EMA would be seen as a bullish development.
  • Meanwhile, Dow Industrials currently trade -122.87 (-0.36%) at 34373.54, Nasdaq -138.5 (-1%) at 13750.16.
  • SPX leading/lagging sectors: Health Care sector (+1.57%) lead by pharmaceutical names, Consumer Staples up second (+0.99%)
  • Laggers: Communication Services (-1.95) with media & entertainment underperforming telecomm names. Consumer Discretionary (-1.44%) as autos underperformed.
  • Dow Industrials Leaders/Laggers: United Health (UNF) surged +5.54 to 537.29, outpacing some larger pharmaceutical names: PG (+2.3 at 159.13), MRK (+2.26 at 253.73), JNJ +0.31at 182.54). Banks widely underperformed: GS (-6.56 at 309.70), JPM (-2.14 at 129.35).

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