US STOCKS: Late Equities Roundup: Dow Holds Weaker, Defense Stocks Pressed Late
Jan-07 20:07
- Stocks remain mixed Wednesday, the DJIA weaker in late trade after extending to a new record high on the open (49,621.43). Currently, the DJIA trades down 338.36 points (-0.68%) at 49121.09, S&P E-Mini Futures down 5 points (-0.07%) at 6983, Nasdaq up 112.8 points (0.5%) at 23660.15.
- Defense stocks reversed support, some gapping lower after Pres Trump warned defense contractors and the industry as a whole that executives should be prevented from making more than $5M annually, while the sector should be barred from allowing dividends and share buybacks.
- "All United State Defense Contractors, and the Defense Industry as a whole, BEWARE: While we make the best Military Equipment in the World (No other Country is even close!), Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment. This situation will no longer be allowed or tolerated!," Trump posted on his social media platform.
- While GE and Boeing trades steady after the headlines, others retreated: Raytheon Technologies Corporation (RTX) -1.01%, Lockheed Martin Corporation (LMT) -2.97%, General Dynamics Corporation (GD) -2.45%, Northrop Grumman Corporation (NOC) -3.25%.
- Additional underperformers included Utilities and Materials sector shares in the first half. Weighing on the former: Vistra Corp -8.19%, NRG Energy -6.44%, Constellation Energy -4.71%, PG&E Corp -3.28% and Dominion Energy -2.68%.
- Meanwhile, CF Industries Holdings -2.88%, CRH -4.03%, LyondellBasell Industries -2.79%, Steel Dynamics -2.53% and Dow Inc -2.51% weighed on the Materials sector.
- On the positive side mix of Technology and Health Care sector shares continued to lead advances: Intel Corp +6.82%, Crowdstrike Holdings +5.62%, Palo Alto Networks +4.93%, Incyte Corp +3.77%, Regeneron Pharmaceuticals +3.62%, Eli Lilly & Co +3.13%, Synopsys Inc +3.06% and Bristol-Myers Squibb +3.00%.
- While the IT sector led overall gains, there were some significant declines noted on a handful of semiconductor makers: Skyworks Solutions -10.94%, First Solar -9.89%, Western Digital -7.64%, Seagate Technology -5.78% and Monolithic Power Systems -5.24%.
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EURJPY TECHS: Bull Flag
Dec-08 20:00
- RES 4: 184.34 2.236 proj of the Jul 31 - Sep 29 - Oct 2 price swing
- RES 3: 183.90 Bull channel top drawn from the Feb 28 low
- RES 2: 183.07 2.000 proj of the Jul 31 - Sep 29 - Oct 2 price swing
- RES 1: 182.01 High Nov 20 and the bull trigger
- PRICE: 181.27 @ 16:44 GMT Dec 8
- SUP 1: 180.17 20-day EMA
- SUP 2: 178.98/178.18 Low Nov 14 / 50-day EMA
- SUP 3: 177.15 Low Nov 10
- SUP 4: 175.87 Bull channel support drawn from the Feb 28 low
EURJPY is in consolidation mode and the latest pause in the trend appears to be a flag formation - a trend continuation signal that reinforces the bull theme. Moving average studies are in a bull-mode position, highlighting a dominant uptrend. A continuation of the trend would signal scope for a climb towards 184.00, the top of a bull channel drawn from the Feb 28 low. First key support lies at 180.17, the 20-day EMA.
US TSY FUTURES: BLOCK: Mar'26 30Y Ultra-Bond Sale
Dec-08 19:42
- -1,500 WNH6 118-08, sell through 118-09 post time at 1432:26ET, DV01 $272,500.
- The 30Y Ultra contract trades 118-08 last (-13)
US TSY OPTIONS: Feb'26 10Y Ratio Put Spread
Dec-08 19:34
- 11,187 TYG6 110.5/112.5 3x2 put spds, 109 net ref 112-10
