Stocks mostly firmer, SPX off midday highs after breaching upside of narrow range - lead by Consumer Discretionary and Staples sectors for the second consecutive session. Currently, SPX eminis trade +12.25 (0.29%) at 4310.5; DJIA +249.91 (0.74%) at 34162.68; Nasdaq underperforming -23.9 (-0.2%) at 13103.95.
- Stocks ignored mixed data that weighed on Tsys earlier, held range even after positive earnings from Home Depot (HD) beat exp: $5.05 vs. $4.983 exp, and Walmart (WMT) beat: $1.77 vs. $1.626 exp.
- Meme-stock blitz: Consumer Discretionary sector lead by specialty retail with Bed Bath and Beyond (BBBY) surged over 85% to late morning high of 28.60 after trade halt called. Incidentally, Bath and Body Works (BBWI) gaining 5.71% in the first half.
- Additional retailer and high-tech earnings this wk: Target (TGT) early Wed: $0.725 est; Lowe's Group (LOW): $4.611 est; Tech: Cisco (CSCO): $0.816 est; Applied Materials (AMAT) $1.77 est early Thu.
- Technicals: SPX futures extend positive price sequence of higher highs and higher lows. Moving average conditions are in a bull mode set-up too. The focus is on 4306.50 next, the May 4 high and potentially 4400.00 further out. On the downside, initial firm support is at 4111.80, the 20-day EMA. The 50-day EMA intersects at 4044.28 - a key support.
- SPX leading/lagging sectors: As noted, Consumer Staples and Discretionary averaging +1.35%, Financials +0.87% Laggers: Information Technology (-0.35%), Health Care (-0.16%) and Real Estate (-0.05%).
- Dow Industrials Leaders/Laggers: Home Depot (HD) surge on strong earnings: +15.93 t 330.54, Walmart (WMT) +7.69 at 140.29, IBM +2.16 at 137.09. Laggers: Salesforce (CRM) -1.49 at 189.57, Visa (V) -1.14 at 215.28, Goldman Sachs (GS) -1.12 at 354.73.