Equity Roundup: Bull Cycle Resumes, Techs Strong

Stocks trading firmer, holding to narrow band near highs over the hour. Currently, SPX eminis trade +37.75 (0.94%) at 4062; DJIA +296.32 (0.92%) at 32493.69; Nasdaq +69.1 (0.6%) at 12101.74. Initial support on rates pricing in less aggressive rate hike expectations after U.S. GDP contracted by 0.9% in the second quarter, far below analyst expectations for a 0.4% gain.

• SPX technicals: Wednesday's rally confirms a resumption of the current bull cycle and signals potential for a climb towards 4145.75, the Jun 9 high. The next key resistance is at 4204.75, the May 31 high. On the downside, initial support has been defined at 3913.25, the Jul 26 low. A break below this level would highlight a possible early bearish reversal signal.
• Midmorning pullback on a few earning's misses/profit taking: Overstock (OSTK) miss: $0.17 vs. $0.277 est, Stanley Black-Decker (SWK) miss: $1.77 vs. $2.126 est, T Rowe Price (TROW) $1.79 vs. $2.145 est. Sources cite moves in DAX (+115.73 at 13282.11) and carry-over rally in Microsoft for current rally in SPX.
• Earnings after the close: Apple (AAPL) $1.158 est, Olin Group (OLN) $2.539% est, Intel (INTC) $0.693 est, Amazon (AMZN) $0.137 est.
• SPX leading/lagging sectors: Real Estate (+3.23%) lead by Equinix (EQIX) +8.66%, Utilities (+2.82%), and Industrials (+1.62%). Laggers: Communication Services receding after Wed's strong gains (-1.47%) with cable and satellite names underperforming (Charter -8.30%, Comcast -8.74%, Dish -3.9%), followed by Energy sector (-0.09%).
• Dow Industrials Leaders/Laggers: Honeywell (HON) +6.04, carry-over bid for Microsoft (MSFT) +5.43 to 274.16, United Health (UNH) +5.38 at 539.99. Laggers: Continued weakness for Travelers (TRC) -4.05 at 154.91, Amgen (AMGN) -1.91 at 249.81, Merck (MRK) -1.07 at 90.14