U.S. equities stalled out and turned lower
U.S. equities stalled out and turned lower amid concerns about cell phone demand following disappointing forecasts from Apple supplier Taiwan Semi. Declines on Apple were also compounded by a Mizuho forecast of weakening iPhone 8 demand. Taiwan Semi sank over 4%, which bled into losses in the U.S. semiconductor sector. This offset some recent bullishness relating to the sharp rally in commodities and crude oil, which topped $69 bbl after Saudi sources said $80-100 bbl would be welcome. The RJ/CRB index is near its 52-week high of 208.18. The Dow is 92-points lower, S&P sank 12-points and NASDAQ is off 35-points into the open. Global trade was mixed, with Europe trading narrowly either side of unchanged, while in Asia a marginal 0.15% N-225 gain was eclipsed by a 1.4% surge on the HK Hang Seng and 1.2% rise on China's CSI 300. The firmer Philly Fed reading saw a big jump in prices, plunge in new orders and modest rise in employment. Meanwhile the 10-year TIPS inflation breakeven rate surged to 2.18%, highest since February, amid elevated commodities/oil and steel/aluminum sanctions, pressuring long yields higher. Alcoa earnings accordingly surged, driving its shares over 5% higher. On tap next are leading indicators and Fedspeak from Quarles and Mester.