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Stocks Return Lower After Fearsome Late Monday Rally

EQUITIES
  • Wall Street opened lower and maintained losses through the London close, with markets trimming a sizeable portion of the fearsome rally seen late Monday. As was the case earlier in the week, tech and growth names led the weakness, with the NASDAQ underperforming both the S&P500 and Dow Jones.
  • As a result, tech and consumer discretionary names were at the bottom of the pile, while more defensive healthcare and financials names were better off.
  • The energy sector sits at the top of the sector breakdown, with a recovery in oil prices (in part due to the continued geopolitical unrest in eastern Europe) flattering margins and driving shares higher.
  • Earnings remain a key driver, with solid updates from Johnson & Johnson, American Express and IBM putting those respective shares at the top end of the S&P 500, with focus now turning to Microsoft after-market.

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