Equity Roundup, Weaker post-CPI, Comm Services, IT Underperforming

Stock indexes hugging session lows after higher than expected Aug CPI read triggered reversal off modest early session gains. Currently, Communication Services, Information Technology and Consumer Discretionary sectors underperforming, SPX eminis trade -124.75 (-3.02%) at 4005.25; DJIA -869.81 (-2.69%) at 31515.72; Nasdaq -471.4 (-3.8%) at 11796.38.

• Today's strong reversal in S&P E-Minis threatens recent recovery. A continuation lower would expose the key short-term support at 3900.00, Sep 7 low and a bear trigger. A break of this level would strengthen a bearish case and signal scope for deeper pullback. Today’s high of 4175.00 represents an important near-term resistance. A break is required to resume bullish activity.
• SPX leading/lagging sectors: Utilities (-1.13%) and Energy sectors outperforming (-1.62%) Baker Hughes (BKR) -0.94% and Diamondback Energy (FABG) -1.12%. Laggers: Communication Services heavy (-4.14%) media/entertainment weighed by META (-7.59%), Netflix (NFLX) -6.24%, DISH (-5.97%); Information Technology not far behind (-3.91%) with semiconductor and hardware makers weaker.
• Dow Industrials Leaders/Laggers: Verizon (VZ) -0.49% at 42.27, Walgreens Boots (WBA) -0.95 at 35.68, Coke (KO) -1.03a t 61.47. Laggers: Home Depot (HD) -14.27 at 283.27, United Health (UNH) -13.31 at 517.94, Goldman Sachs (GS) -11.57 at 331.01