US STOCKS: Late Equity Roundup, IT, Materials, Communication Services Leading
Stocks continue to extend late session highs, Information Technology, Materials and Communication Services sectors outperforming. SPX eminis trade +54 (1.28%) at 4264.25; DJIA +304.71 (0.91%) at 33642.13; Nasdaq +206.8 (1.6%) at 12987.16.
- Modest buying outweighed sellers following deflationary data: Import (-1.4%)/Export (-13.3%) prices come out weaker than expected, UMich sentiment gains and mixed/less hawkish comments from Richmond Fed Barkin on CNBC in the first half.
- SPX leading/lagging sectors: As noted, Information Technology sector +1.62%, lead by semiconductor and hardware makers, Materials (+1.51%) lead by Albemarle (ALB) +5.0%, and Communication Services +1.33% w/ Dish Network (DISH) +3.12% and Disney (DIS) +2.54% after 50% profit surge anncd midweek. Laggers: Energy (+0.09%), Consumer Staples (+0.48%) and Industrials (+0.89%).
- Dow Industrials Leaders/Laggers: United Health (UNH) +8.02 at 540.88, Microsoft (MSFT) +3.02 at 290.04, Apple (AAPL) +2.88 at 171.37, McDonalds (MCD) + 2.40 at 261.68. Laggers: Chevron (CVX) off lows at 158.65 -0.97, Johnson and Johnson (JNJ) -0.90 at 166.24, Verizon (VZ) +0.28 at 45.06.
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US: Senate Committee Hearing On Energy Prices Beginning Shortly
The Senate Energy and Natural Resources Committee hearing "on pathways to lower energy prices" is due to begin shortly.
- Livestream of the hearing here: https://www.energy.senate.gov/hearings/2022/7/ener...
- The Rhodium Group issued this statement on twitter: "Partner John Larsen will provide expert testimony in a Senate Committee on Energy and Natural Resources subcommittee hearing on pathways to lower energy prices."
- Larsen is expected to push for accelerated permitting for Class VI wells and a raft of tax credits and incentives to be included in the new reconciliation package being negotiated by Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin (D-WV).
- In April, following the Russian invasion of Ukraine, the Rhodium Group estimated that the policies outlined above could cut domestic natural gas consumption by twice the amount the Biden administration committed to export to Europe.
- Ben Cahill, John Larsen, And Joseph Majkut wrote in April: "Senate Democrats could use the existing budget reconciliation framework to pass the most important climate policies from Build Back Better, paired with new measures to boost short-term energy security."
US TSY OPTIONS: Late 10Y Put Spds
Late session put trade picks up:
- +7,300 TYQ 114.5/115.5 put spds, 10, ref 118-27.5
USDJPY TECHS: Northbound
- RES 4: 140.00 Psychological round number
- RES 3: 139.48 1.00 proj of the Jun 16 - 22 - 23
- RES 2: 138.56 1.618 proj of the Feb 24 - Mar 28 - 31 price swing
- RES 1: 137.87/138.00 High Jul 13 / Round number resistance
- PRICE: 137.31 @ 16:21 BST Jul 13
- SUP 1: 135.37/134.27 20-day EMA / Low Jun 23
- SUP 2: 133.30 Bull channel base from the Mar 4 low
- SUP 3: 131.50 Low Jun 16 and a key support
- SUP 4: 130.00 Round number support
USDJPY remains bullish. Wednesday’s fresh cycle high confirms a resumption of the primary uptrend and signals scope for an extension higher. The move higher also highlights the fact that corrections remain shallow, reinforcing underlying bullish conditions. The focus is on the 138.00 handle and 138.56 further out, a Fibonacci projection. Firm short-term support lies at 134.27, the Jun 23 low.
