US TSYS: Late SOFR/Treasury Option Roundup: SOFR Calls Leading

• Stocks are extending lows in late Wednesday trade, retreating after Fed Chairman Powell's outlook discussion at the Chicago Economics Club, risk-off tone gathering momentum as Powell warns inflation may be more persistent due to tariffs, exacerbated by policy uncertainty.
• Currently, the DJIA trades down down 862 points (-2.14%) at 39519.82, S&P E-Minis down 161.25 points (-2.97%) at 5268.25, Nasdaq down 700.1 points (-4.2%) at 16126.69.
• Information Technology and Consumer Discretionary sector shares continued to underperform in late trade, semiconductor makers weighed by Pres Trump's curbs: NVIDIA -10.04%, Advanced Micro Devices -9.33%, Palantir Technologies -8.56%, KLA -7.06% and ON Semiconductor -6.69%.
• Autos and broadline retailers weighed on the Consumer Discretionary sector: Tesla -6.48%, CarMax -5.54%, Amazon.com -4.19% and Williams-Sonoma -4.01%. Elsewhere, MGM Resorts fell 4.64%.
• The Energy sector continued to outperform in late trade, leading oil and gas shares include APA +3.46%, Diamondback Energy +2.73%, Devon Energy +2.59%, Occidental Petroleum +2.25%, Coterra Energy +1.94% and Marathon Petroleum +1.87%.
• Reminder: earnings expected after the close: Liberty Energy, Rexford Industrial, CSX Corp, Alcoa Corp and Kinder Morgan. Thursday's earning's calendar includes: KeyCorp, American Express, DR Horton Inc, Charles Schwab, Marsh & McLennan, Truist Financial Corp, UnitedHealth Group, Blackstone, Ally Financial, State Street and Netflix Inc.

• RES 4: 165.43 High Nov 8        
• RES 3: 164.90 High Dec 30 ‘24 and a key medium-term resistance   
• RES 2: 164.55 High Jan 7
• RES 1: 163.55/164.19 High Apr 14 / High Mar 18 and the bull trigger 
• PRICE: 162.19 @ 16:06 GMT Apr 16 
• SUP 1: 161.05/158.30 50-day EMA / Low Apr 7 and key support   
• SUP 2: 157.02 76.4% retracement of the Feb 28 - Mar 18 bull cycle  
• SUP 3: 155.60 Low Low Mar 4  
• SUP 4: 154.80 Low Low Feb 28  

Short-term weakness in EURJPY appears corrective and trend conditions remain bullish. Key short-term support has been defined at 158.30, the low on Apr 7. A break of this level is required to signal scope for a deeper retracement. This would open 157.02, a Fibonacci retracement. For bulls, a resumption of gains would expose 164.19, the Mar 18 high and the bull trigger. Clearance of this hurdle would resume the uptrend.     

Tsy 5Y TIPS auction moved to 1130ET as Thursday sees an early pit close (1300ET) - Globex closes normal time while markets closed Friday for Easter Holiday

• US Data/Speaker Calendar (prior, estimate)
• 17-Apr 0830 Initial Jobless Claims (223k, 225k)
• 17-Apr 0830 Continuing Claims (1.850M, 1.870M)
• 17-Apr 0830 Housing Starts (1.501M, 1.420M), MoM (11.2%, -5.4%)
• 17-Apr 0830 Building Permits (1.459M, 1.450M), MoM (-1.0%, -0.6%)
• 17-Apr 0830 Philadelphia Fed Business Outlook (12.5, 2.0)
• 17-Apr 1130 US Tsy $85B 4W, $75B 8W bill auctions
• 17-Apr 1130 US Tsy $25B 5Y TIPS (91282CNB3)
• 17-Apr 1145 Feb Gov Barr fireside chat on cyber risks (text, Q&A)