US STOCKS: Late Equity Roundup: Real Estate Edges Past Consumer Discretionary
Stock indexes hold modest gains in late trade - near middle of session range after extending lows for the week overnight, Real-Estate sector edging past Consumer Discretionary in the second half. Currently, SPX eminis trade +14.75 (0.36%) at 4145.25; DJIA +79.52 (0.24%) at 32990.25; Nasdaq +70.5 (0.6%) at 12452.11.
- Notable earnings annc's after today's close: Salesforce.com (CRM) $1.028 est and Nvidia (NVDA) $0.532 est, Dell late Thursday $1.636 est.
- SPX leading/lagging sectors: Real Estate outperformed in the second half (+0.81%) lead by Iron Mountain (IRM) +2.33%, Duke Realty (DRE) +1.96%, Prologis (PLD) +1.89%. Consumer Discretionary close behind (+0.61%) as consumer durables outpaced autos. Laggers: Materials (-0.04%), Utilities (+0.12%) and Information Tech (+0.15%) semiconductor share weighing on the latter.
- Dow Industrials Leaders/Laggers: Salesforce.Com (CRM) +4.50 at 180.50, Boeing (BA) +2.55 at 162.62, Disney (DIS) +2.02 at 116.88. Laggers: seeing some profit taking after strong rally Tuesday, Caterpillar (CAT) -3.62 at 193.59, IBM -1.61 at 133.13 and Dow Inc (DOW) -1.46 at 54.16.
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US: White House Press Conference Beginning Shortly
White House Press Secretary Karine Jean-Pierre and COVID Response Coordinator Dr. Ashish Jha are shortly due to give a press conference.
- Livestream: https://www.youtube.com/watch?v=16Bw2sEwWNc&featur...
- Dr Jha will provide an update on the health of President Biden and may give further information about steps the administration is taking to deal with the increasing risk presented by Monkeypox.
US TSYS: Partial Retracement Of Last Week’s Recession-Focused Rally
- Treasuries have more closely followed the risk-on moves implied in FX rather than falling equities, where tech companies appear to weigh on performance with Nasdaq seeing larger declines than SPX.
- Accelerated cheapening in the front-end, despite a brief pause for a solid 2Y auction stopping through 0.6bps with reasonable internals, has seen parallel shift higher in the yield curve (2YY +6.3bps, 10YY +6.6bps) from the early session bear steepening as both breakevens and real yields increase.
- That only sees a partial reversal of Friday’s rally, with yields still some 20bps below mid-last week levels before growth indicators started to roll heavily.
- Plenty of growth-related triggers tomorrow, with a heavy earnings week (50% of S&P market cap) beginning in earnest, the Richmond Fed manufacturing and Conf. Board consumer surveys plus the $46B 5Y auction.
EURJPY TECHS: Bearish Focus
- RES 4: 144.28 High Jun 28 and key resistance
- RES 3: 143.85 High Jun 29
- RES 2: 142.37 High Jul 5
- RES 1: 142.19 2.0% 10-dma envelope
- PRICE: 139.68 @ 16:38 BST Jul 25
- SUP 1: 138.72 Intraday low
- SUP 2: 137.99/36.87 Low Jul 14 / Low Jul 8 and the bear trigger
- SUP 3: 136.25 Low May 30
- SUP 4: 135.40 76.4% retracement of the May 12 - Jun 28 climb
EURJPY traded higher last week, but also found firm resistance at 142.32 on Jul 21. The pullback signals the end of a corrective recovery between Jul 8 - 21. A continuation lower would expose 136.87, Jul 8 low and a bear trigger. Clearance of this level would strengthen bearish conditions. For bulls, a move above 142.32 would instead suggest scope for a climb towards key resistance at 144.28, the Jun 28 high.
