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Stocks Drift on ISM-Flagged Price Pressures

EQUITIES
  • Wall Street equity markets opened broadly flat, but slipped into negative territory ahead of the close following the acute price pressures evident in the January ISM manufacturing survey. The prices-paid subcomponent came in well ahead of expectations (76.1 vs. Exp. 67.0), bolstering the Fed's tightening bias this year.
  • The e-mini S&P oscillated either side of the 4500 handle, trading comfortably back above the 200-dma for the H2 contract at 4418.6.
  • Pre-market earnings were well digested, with a solid update from UPS driving the industrials sector higher (UPS added as much as 14%), while a lurch higher in profits for ExxonMobil put the energy sector at the top of the pile. Laggards included utilities and real estate.
  • After-market focus for corporates turns to reports from Alphabet, PayPal, Starbucks and General Motors, with Tuesday marking one of the busiest sessions of the week for the index. Full earnings schedule including EPS and revenue expectations found here: https://marketnews.com/mni-us-earnings-schedule-sp...

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