Equity Roundup: Off Post Data Lows

Stocks have recovered from post-CPI sell-off (ESM2 3950.25 low)are see-sawing back near late overnight highs of 4049.00 at 4015.0. Incidentally, Tsys futures rebounding as bonds appear to be discounting the inflation data, short end anchored as additional three 50bp rate hikes gets baked in. Nevertheless, analysts anticipate inflation softening in the coming months.

• Technicals for SPX eminis: S&P E-Minis remain vulnerable following last week’s sharp reversal in ESM2 from 4303.00 (May 4 high) and Mon’s move lower that resulted in a breach of support at 4056.00 (May 2 low).
• A clear break of this support confirms a resumption of the underlying downtrend and opens 3892.98 next, a Fibonacci projection. On the upside, key resistance has been defined at 4303.50, the Apr 26/28 high.
• Earnings cycle starting to wind down, Walt Disney (DIS) and Rivian Automotive (RIVN) after the close.
• SPX leading/lagging sectors: Energy sector continues to outperform (+3.77%) sd energy and equipment servicing names outpace O&G consumables. Materials and Utilities both around +1.93%.
• Laggers: Consumer Discretionary (-0.81%) and Information Technology (-0.71%) weighed by hardware makers.
• Meanwhile, Dow Industrials currently trades +227.17 points (0.71%) at 32386.46, Nasdaq -59.9 points (-0.5%) at 11677.28.
• Dow Industrials Leaders/Laggers: United Health Care surge (UNH) +12.05 at 500.06, Chevron (CVX) +6.187 at 166.96 and Caterpillar (CAT) +5.58 at 208.57. Laggers: Microsoft (MSFT (-3.05 at 266.45) and Home Depot (HD) continues to sag -2.10 at 289.06.