Equity Roundup: Tracking Tsys Lower, Energy Sector Outperforms

Stocks weaker but inching off midday lows, tracking similar bounce off lows in rates, Energy sector outperforming. Currently, SPX eminis trade -31.75 (-0.74%) at 4276; DJIA -168.5 (-0.49%) at 33983.62; Nasdaq -169.4 (-1.3%) at 12933.45.

• Stocks followed Tsys lower since overnight after UK CPI surged (+0.6% MoM; +10.1 YoY) triggered extended rate hike expectations into 2023 (hopes of rate cut in 2023 evaporating). Moves more related to modest squaring rather than considered consolidation / paradigm shift in longer expectation. Upcoming July FOMC minutes release at 1400ET hopefully provided more insight on forward guidance.
  
• Equity earnings: Stocks weaker (ESU2 -36.25 at 4271.5) part on extended rate hike pricing and after Target (TGT) earnings miss (irony) -$0.39 vs. $0.725 est. Meanwhile, Lowe's Group (LOW) beat: $4.67 vs $4.611 est; Analog Devices (ADI) beat: $2.52 vs. $2.442 est.
  
  • After the close: Synopsys (SNPS) $2.038 est; Cisco (CSCO) $0.816 est; Bath and Body Works (BBBI) $0.446 est.
• SPX leading/lagging sectors: As noted, Energy outperforms (+0.91%) lead by petroleum shares: Valero (VLO) +3.71%, ConocoPhillips (COP) +1.31%, Chevron (CVX) +1.18%, Exxon (XOM) +1.12%; Utilities (-0.13%) and Consumer Staples (-0.16%) follow. Laggers: Materials (-1.61%), Communication Services (-1.48%) w/ media/entertainment underperforming, followed by Consumer Discretionary (-1.29%).
• Dow Industrials Leaders/Laggers: Chevron (CVX) +1.84 at 158.25, Merck (MRK) +1.15 at 91.75, IBM +1.03 at 137.59, Apple (AAPL) +1.01 at 174.04. Laggers: Boeing (BA) -5.25 at 166.83, Visa (V) -3.86 at 213.28, 3M (MMM) -2.91 at 147.35.