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Late Equity Roundup:  Utilities, Materials Sectors Underperform

US STOCKS
  • Stocks extending losses in late trade, risk appetite souring as short end rate markets project a higher chance of a rate hike before year end. Currently, S&P E-Mini futures are down 39 points (-0.88%) at 4370.5, Nasdaq down 104.9 points (-0.8%) at 13554.85, DJIA down 286.33 points (-0.85%) at 33518.44.
  • Laggers: Utilities and Materials sectors underperform, water and electricity providers weighing on the former: American Water Works -2.77%, Eversource -6.48%, PPL Corp -2.49%. Metals and mining shares weighing on Materials sector: Nucor -5.17%, Steel Dynamics -5.07% while Freeport-McMoRan Inc declined -3.63%.
  • Leaders: Information Technology and Energy sectors continued to outperform in late trade, semiconductor shares buoying the former: KLA Corp +3.64%, Broadcom +3.5%, Applied Materials +2.62%.
  • Meanwhile, oil and gas shares continued to trade firm despite crude reversing course to weaker (WTI -0.88 at 82.68): Diamondback Energy +1.97%, EOG Resources +1%, Hess Corp +0.8%.
  • Reminder, Q4 earnings cycle gets underway with several bank shares reporting tomorrow Friday: JP Morgan, Wells Fargo, Blackrock, PNC Financial and Citigroup expected.

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