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Late Equities Roundup: Paring Gains Ahead Data Risk, Earnings

US STOCKS
  • Stocks are mixed in late trade, trimming gains after S&P eminis are made new contract highs (4933.25) earlier. Middle East tensions a potential factor for the late risk unwinds, but traders point out crude remains bid (WTI +.60 at 74.97).
  • Stocks had pared gains after this morning's larger than expected flash PMI gains for January tempered projected rate cuts. Paring risk ahead Thursday's Q4 GDP estimate, followed by consumer spending and PCE deflators on Friday is plausible.
  • Currently, S&P E-Mini futures are up 12.5 points (0.26%) at 4906.75, Nasdaq up 88.1 points (0.6%) at 15512.85, DJIA down 28.23 points (-0.07%) at 37874.72.
  • Leading gainers: Communication Services sector continued to outperform, media and entertainment shares leading: Netflix +11.59% (off highs) after better than expected rise in new service contracts. Distant second and third place: Meta +1.78%, Google +1.4%. AI demand continued to buoy chip stocks and IT sector: Advanced Micro Devices +5.15%, Applied Materials +4.98%, while Nvidia gained 3.75%.
  • Laggers: Materials and Utility sectors underperformed in late trade, chemical stocks weighed on the former: Dupont de Nemours -12.68% after weak output spurred a downgrade from BMO. Eastman Chemical -2.63%, Celanese Corp -2.01%. Independent power and water providers weighed on the Utility sector: American Water Works -3.36%, Sempra -1.58%, AES -1.60%.
  • Looking ahead: several earnings announcements expected after the close: IBM, Seagate, Lam Research, Tesla, Raymond James and Crown Castle.

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