Stocks are recovering some after their sharp losses yesterday and ahead of Georgia’s Senate runoff elections. The Dow Jones added 131 points; the S&P 500 advanced around 18 points; and the Nasdaq gained 79 points this afternoon.

Energy is the best sector in today’s session, as WTI crude hit $50. The rally came after OPEC+ announced voluntary oil cuts in February.

Utilities are underperforming and acting like there will be a red wave. Smart money is not loading up on the sector that should be the biggest winner under Biden and blue wave.

Breadth is decisively positive today, almost 3-1 on the NYSE, as companies making new 52-week highs are blowing away new lows.

ISM Manufacturing

The economic activity in the US manufacturing sector expanded in December to 60.7 from 57.5, beating expectations of 56.7.

• Price Paid Index 77.6 vs 65.7 consensus
• New Orders 67.9 vs 65.1 November
• Employment index 51.5 vs 48.4 November

Respondents were mostly bullish. Many reported sales were above pre-Covid 19 levels.