US STOCKS: Late Equities Roundup: Overbought Tech Sector Concerns Cool
- Stocks have recovered from the prior session's sell-off Wednesday, back to or near late Monday levels. Currently, the DJIA trades up 258.93 points (0.55%) at 47342.77, S&P E-Minis up 48.25 points (0.71%) at 6850.75, Nasdaq up 264.4 points (1.1%) at 23620.13.
- Information Technology sector shares led gainers on the day, rebounding after opinions of the tech sector tied to AI has been overbought dissipated: Seagate Technology +12.62%, Micron Technology +8.69%, Western Digital +7.88%, First Solar +6.30% and Teradyne +6.26%.
- Communication Services and Consumer Discretionary sector shares followed: Match Group +6.69%, Paramount Skydance +2.83%, Charter Communications +2.33% and Meta Platforms +2.22% buoyed the Communication sector while the Discretionary sector was supported by Lululemon Athletica +5.12%, Wynn Resorts +4.17%, Marriott International +4.00%, Ford Motor +3.64% and Tesla +3.53%.
- Second half declines were led by a mix of Consumer Staples, Health Care and Utilities: Zimmer Biomet Holdings -14.38%, Live Nation Entertainment -7.95%, Charles River Laboratories -7.82%, Humana -7.63%, Axon Enterprise -7.61% and Archer-Daniels-Midland -4.81%.
- Earnings expected after today's close include: Albemarle Corp, McKesson Corp, Fortinet Inc, APA Corp, Duolingo Inc, Lucid Group Inc, DoorDash Inc, Snap Inc, AppLovin Corp, Robinhood Market, Lyft Inc, Enovix Corp, QUALCOMM Inc, Dutch Bros Inc and Fair Isaac Corp.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EURJPY TECHS: Primary Uptrend Accelerates
- RES 4: 178.94 1.236 proj of the Jul 31 - Sep 29 - Oct 2 price swing
- RES 3: 177.67 1.000 proj of the Jul 31 - Sep 29 - Oct 2 price swing
- RES 2: 177.00 Round number resistance
- RES 1: 176.25 Intraday high
- PRICE: 175.73 @ 16:30 BST Oct 6
- SUP 1: 173.92 Intraday low
- SUP 2: 172.27 Low Oct 2 and key support
- SUP 3: 171.12 Low Aug 28
- SUP 4: 170.62 Low Aug 6
The trend in EURJPY is unchanged, it remains bullish. Today’s strong start to this week’s session reinforces current conditions. The cross has cleared resistance at 175.13, the Sep 29 high, to confirm a resumption of the primary uptrend. This maintains the bullish sequence of higher highs and higher lows and opens the 177.00 handle next. On the downside, key short-term support has been defined at 172.27, the Oct 2 low.
BONDS: EGBs-GILTS CASH CLOSE: Curves Steepen Amid French Political Uncertainty
Long-end yields rose across EGB and Gilt curves, with OATs underperforming on renewed political/fiscal concern.
- The surprise resignation of Prime Minister Lecornu saw OAT spreads widen sharply, with President Macron giving his now ex-PM 48 hours to hold final discussions with political parties to see whether the ongoing budget impasse can be overcome.
- Other semi-core and periphery EGB spreads widened, but more modestly, and closed below session wides.
- More broadly, global curves steepened after longer-end JGBs underperformed following the election of a new Japanese PM overnight.
- On the day, the German curve twist steepened, while the UK's bear steepened.
- In data, Eurozone retail sales extended their recent tepid trend in August, while underlying Spanish industrial production momentum remains constructive despite two consecutive monthly falls.
- Tuesday's calendar includes German factory orders, and appearances by ECB's Nagel and Lagarde.
Closing Yields / 10-Yr EGB Spreads To Germany
- Germany: The 2-Yr yield is down 1.2bps at 2.007%, 5-Yr is up 0.3bps at 2.305%, 10-Yr is up 2.1bps at 2.719%, and 30-Yr is up 2.9bps at 3.296%.
- UK: The 2-Yr yield is up 2.6bps at 3.992%, 5-Yr is up 3.5bps at 4.153%, 10-Yr is up 4.6bps at 4.736%, and 30-Yr is up 5.4bps at 5.555%.
- Italian BTP spread up 0.8bps at 82.1bps / French OAT up 3.8bps at 85.1bps
USDJPY TECHS: Gaps Higher
- RES 4: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
- RES 3: 151.21 High Mar 28
- RES 2: 150.92 High Aug 1 and a key resistance
- RES 1: 150.48 High Oct 6
- PRICE: 150.07 @ 16:28 BST Oct 6
- SUP 1: 149.05 Intraday low
- SUP 2: 147.86 20-day EMA
- SUP 3: 146.53 Trendline support drawn from the Apr 22 low
- SUP 4: 145.49 Low Sept 17
USDJPY has started the week on a strong bullish note, gapping higher. Monday’s rally has resulted in a breach of resistance at 149.96, the Sep 26 high and a key short-term resistance. This paves the way for a test of the key medium-term resistance at 150.92, the Aug 1 high. A break of this hurdle would confirm a resumption of the bull leg that started Apr 22. Monday’s intraday low at 149.05 is the first support.
