US STOCKS: Late Equities Roundup: Paring Longs Ahead Thursday's Heavy Data

• Relatively quiet start to the week with London out for annual bank holiday. Treasuries opened weaker - scaling back a fair portion of Friday's post-Chair Powell speech in Jackson Hole that left the door open to a possible rate cut at the next FOMC annc on September 17.
• NEC director Kevin Hassett (potential Fed Chair candidate) tells CNBC that Chair Powell's Jackson Hole speech showed a Fed that is "late" to cut but that Powell's presentation was "sound" and "data driven".
• Treasury futures maintained losses after higher than expected new home sales - but climbed back to mildly weaker levels on the open. After the bell, Se'25 10Y contract trades -6.5 at 111-30 vs. 111-27.5 low. Support around the 50-day EMA, at 111-13. A clear break of this average would expose support at 110-23+, the Aug 1 low.
• The June reading of 652k (seasonally-adjusted, annualized) was better than the 630k Bloomberg consensus, but actually represented a slight fall (-0.6%) on the month due to a sizeable upward revision to June to 656k (from 627k).
• July's building permits were revised up in the final reading to 1,362k (annualized, seasonally-adjusted), vs 1,354k in the initial estimate. That got the data a little closer to the 1,386k consensus estimate going into the initial reading last week, though either way it is a pullback from 1,393k in June (a 2.2% fall vs the 2.8% initially recorded).
• US$ continued to climb in late trade, recovering appr half of Friday's decline. Today's move said to be EUR related after the French confidence vote call earlier. The Bbg $ index: BBDXY +5.94 at 1207.43 vs. 1201.02 low.

SOFR & Treasury options looked mixed on net late Monday, SOFR Calls mixed while Treasury options saw decent buying in Oct 10y calls. Underlying had pared appr half of Friday's post-Powell speech support by late morning - inched off lows during the second half. Projected rate cuts contract slightly vs. early morning (*) levels: Sep'25 at -20.8bp (-21.2bp), Oct'25 at -33.9bp (-34.1bp), Dec'25 at -52.9bp (-53.0bp), Jan'26 at -65.6bp (-65.9bp).

• SOFR Options:
  • -10,000 SFRH6 96.50/97.25 call spds 13.0 over 95.75 puts vs. 96.445/0.38%
  • 3,000 SFRU5 95.75/95.81/95.87 put flys, 0.5 vs. 95.875/0.05%
  • -5,000 SFRM6 96.75/97.00 call spds w/ 96.50/97.00/97.50 call flys, 17.5 total
  • -4,000 SFRZ6 96.25 puts, 20.0 vs. 96.925/0.32%
  • -5,000 SFRZ5 95.75/95.81 put spds, 0.5
  • +2,000 SFRZ5 95.75/95.87/96.00 call flys, 2.0 ref 96.20
  • +4,000 SFRV5 96.93 calls, 1.0 ref 96.20
  • +5,000 SFRV5 96.43/96.50 call spds, 1.0 ref 96.23/0.05%
  • +4,000 0QH6 97.25/97.50/97.75 call trees, .25
  • +4,000 SFRZ5 95.68/95.81/95.87/96.00 2x2x1x1 put condors, 1.25 ref 96.21
  • -16,000 2QU5 97.0 calls, 4.4
  • -1,000 SFRU5 95.87/95.93 straddle strip, 18.5
  • +10,000 SFRU5 96.06/96.31 call spds, 1.0
  • +5,000 SFRU5 95.81/95.93/96.06 2x3x1 put flys, 1.25
  • +2,500 SFRU5 95.87/95.93/96.00/96.03 call condor, 2.5
  • 6,000 SFRU5 95.87 calls 5.75 last
  • +4,000 SFRV5 96.06/96.18 put spds vs. 96.43 calls, 1.0 net ref 96.21.5
  • +7,600 SFRV5 96.25/96.37 call spds, 3.5 ref 96.22
• Treasury Options:
  • 3,000 TYZ5 113/114.5 1x2 call spds ref 111-29.5
  • 3,700 USZ5 107 puts, 25 ref 114-05
  • +25,000 TYV5 113.5 calls, 15 vs. 112-00.5/0.19%
  • +2,500 TYX5 109.5 puts, 11
  • 2,000 USX5 109/112 put spds
  • over -5,700 TYV5 110 puts, 5-6 last
  • over 3,700 TYV5 113 calls, 23 last
  • +1,500 wk5 TY 111/111.5/111.75/112 broken put condors, 4 ref 112-04.5, exp Fri
  • 2,000 FVX5 108/108.25/108.75 put trees, 0.0 ref 109-05

• Stocks held near steady in SPX eminis to mixed in late Monday trade, the DJIA underperforming as markets (rates, currency and equities) unwound a portion of Friday's post-Chair Powell related rally.
• After climbing to new record high last Friday (45,757.84), the DJIA trades currently down 281.62 points (-0.62%) at 45350.5, S&P E-Minis down 12.5 points (-0.19%) at 6470.75, Nasdaq up 21.1 points (0.1%) at 21518.51.
• Health Care and Consumer Staples sectors underperformed in late trade, Pharmaceutical stocks weighed on the Health Care sector: Dexcom -6.37%, Moderna -4.90%, Align Technology -3.04%, Regeneron Pharmaceuticals -2.74% and Pfizer -2.61%. Highlight laggers in the staples sector included: Keurig Dr Pepper -10.03%, Estee Lauder Cos -2.85%, Constellation Brands -2.11% and Molson Coors Beverage -2.08%.
• On the positive side, tech stocks continued to lead gainers in late trade: Western Digital +3.51%, Seagate Technology Holdings +3.22%, NVIDIA and Super Micro Computer both +1.89% (Nvidia reports after Wednesday's close). Meanwhile, Interactive media and entertainment shares were buoyed Communication Services:  Netflix +1.71%, Alphabet +1.54%, Take-Two Interactive Software +1.40% and Electronic Arts +0.70%.