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Late Equity Roundup: Stocks Weaker as Tsy Yields Surge Post 30Y Sale

US STOCKS
  • Stocks had sold off in reaction to a jump in Treasury yields following a poorly subscribed 30Y bond auction - are holding just above session lows in late trade.
  • Currently, S&P E-Mini future are down 36 points (-0.82%) at 4365.25, Nasdaq down 112.6 points (-0.8%) at 13542.47, DJIA down 239.67 points (-0.7%) at 33884.05.
  • Initial support for Eminis is still well below: 4257.75/4122.25 (Low Nov 3 / Low Oct 27 and the bear trigger). Initial technical resistance of 4430.50 (High Oct 12) followed by 4435.50 (trendline resistance drawn from the Jul 27 high).
  • Laggers: Pharmaceutical and biotech shares continued to weigh on the Health Care sector: Eli Lilly -4.51%, Gilead -3.9%, IQVIA Holdings -3.78%. Meanwhile, auto makers continued to weigh on the Consumer Discretionary sector: namely Tesla -6.15% (US Pres Biden said this morning he supports UAW efforts to unionize at Tesla and Toyota), while Ford and GM trade -2.8% and -2.21% lower respectively.
  • Leaders: Energy and Information Technology stocks outperformed in late trade, energy and equipment servicers buoyed the former: Baker Hughes +0.96%, Halliburton +0.64%, Schlumberger +0.51%. Meanwhile, semiconductor shares helped the IT sector: Micron +3.0%, Nvidia +1.97%, Lam Research +1.88%.
  • Reminder: corporate earnings after the close: Mettler-Toledo International, Illumina Inc and Wynn Resorts Ltd.

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