U.S. equities are extending their rebound
U.S. equities are extending their rebound given a leg higher by relief trade on financials with the recovery of the Turkish lira easing some EM strains. Europe settled mostly lower after a mixed start, even as the euro continued to skid to lows near 1.1350. U.S. NFIB small business optimism hit a record high, while household debt rose for the 16th consecutive quarter. The Euro Stoxx 50 and German DAX were flat, while the UK FTSE 100 sank 0.4%. The major U.S. indices are 0.4-0.6% higher, however, with the small cap Russell 2000 over 1% higher, along with NASDAQ transports and Dow transports +1.2%. NASDAQ financials are 0.9% higher, along with an over 1% gain in the KBW bank index. Home improvement sector also was firmer after solid Home Depot earnings, which lifted Lowe's over 1% as well. Top gainers in the S&P 500 are Tapestry +13.2% and Advanced Auto Parts +7.7%, while deepest decliners were Microchip Technology -3.1% and Williams Companies -2.5%. VIX equity vol is 9.6% lower near 13.36.