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Late Equities Roundup: Strong Gains  Around, DJIA Crush May Highs

US STOCKS
  • Despite briefly revisiting the lows for the week after this morning's data, stocks surged to new cycle highs as the PPI details were deemed more mixed than the initial hawkish reaction warranted.
  • S&P Eminis marked a new high of 5,708.25, while the DJIA blew past the prior high of 40,065.18 set on May 20 to 40,244.94 in the second half. While the Nasdaq traded strong, the index was still off Thursday morning's cycle high of 18,661.46.
  • Currently, the DJIA is up 444.46 points (1.12%) at 40198.6, S&P E-Minis up 62.75 points (1.11%) at 5703.25, Nasdaq up 252.7 points (1.4%) at 18538.42.
  • Information Technology and Consumer Discretionary sectors continued to lead gainers in the second half, semiconductor makers recovering from Thursday's profit taking: Enphase +6.86%, ON Semiconductor +5.09%, Intel +4.93%, Monolithic Power +4.73%. Auto makers continued to buoy the Consumer Discretionary sector: Ford +5.09% outpacing Tesla +3.99%, while GM gained 2.61%.
  • Conversely, Communication Services and Energy sectors continued to lag in late trade, interactive media and entertainment pared midweek support with Paramount -2.56%, Meta -1.79%, News Corp -0.54%. Oil & Gas shares weighed on the Energy sector: Diamondback Energy -1.46%, ConocoPhillips -0.61%, Marathon Petroleum -0.49%.
  • Meanwhile, banks kicked off the latest earnings cycle this morning, mixed results for Wells Fargo -6.0%, JP Morgan -1.21% and Citigroup -1.55%, while Bank of NY Mellon surged 3.29%.
  • Next week sees Blackrock and Goldman Sachs on Monday; Bank of America, Charles Schwab, State Street and Morgan Stanley on Tuesday; Citizens Financial, US Bancorp, Discover Financial and Ally Financial on Wednesday; KeyCorp, M&T Bank and Blackstone on Thursday; Fifth Third, Regions Financial, Comerica, American Express and Huntington next Friday.

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