Equity Roundup: Knock-On Effect Energy Inflation

Stocks extending session lows after midday, prospect of higher rates tied to EU energy price surge weighing on stocks (notably auto shares, retailing and services) and short FI markets Monday. Currently, SPX eminis trade -81.75 (-1.93%) at 4149.75; DJIA -560.99 (-1.66%) at 33146.1; Nasdaq -288.2 (-2.3%) at 12417.28.

• Technicals: S&P E-Minis outlook remains bullish, however, a corrective cycle suggests scope for a pullback near-term. This will allow an overbought reading in momentum studies to unwind - attention is on the 20-day EMA at 4164.93. A breach of this EMA would signal scope for a deeper pullback, potentially exposing the 50-day EMA, at 4078.40. Key resistance and the bull trigger is at 4327.50, the Aug 16 high.
• Equity earnings cycle nearly complete, still some notable announcements next week: Nvidia (NVDA) late Wednesday $508 est, Dell late Thursday $1.636 est.
• SPX leading/lagging sectors: Energy sector mildly weaker (-055%) buoyed by energy/technology company Baker Hughes (BKR) +1.67%, Marathon (MRO) +1.02%, Schlumberger (SLB) +0.54% and Diamondback Energy (FANG) +0.55%. Consumer Staples (-1.01) and Health Care follow (-1.06%). Laggers: Consumer Discretionary (-2.54%), Consumer Services (-2.34% and Information Technology -2.34%
• Dow Industrials Leaders/Laggers: Procter $ Gamble (PG) -0.11 at 149.62, Verizon (VZ) -0.17 at 44.25, Merck (MRK) -0.56 at 91.52. Laggers: Microsoft (MSFT) -7.45 at 278.74, Salesforce (CRM) -7.10 at 176.70, Home Depot (HD) -6.40 at 314.92.