The major indices remain in the red today, but off the lows.  IBM (IBM) and Intel (INTC) earnings misses are weighing on the Dow.

Communication Services is the best performing sector. Apple (AAPL) received another price upgrade today, this time from Cowen & Co to $153 from $133, and the stock is trading up almost 1% in the session to $137.96.

Energy is once again the worst performing sector.  Oil is down today, as the EIA report for the week ending January 15 showed a build in the U.S. of 4.351 million barrels.  Concerns about further slowdowns due to Covid-19, especially in China, is adding pressure to the commodity. WTI is currently down 1% to $52.50 per barrel.

Decliners are leading advancers, but volume is mixed, with up volume exceeding down on the Nasdaq.  New high keeping pushing higher.

On the economic front, the hot housing market is showing no signs of letting up.  Existing home sales rose 0.7% in December to 6.76 million units, topping estimates for 6.55 million units. Unsold inventory is at its lowest level, with only a 1.9-month supply.  According to Lawrence Yun, Chief Economist at the National Association of Realtors, "This momentum is likely to carry into the new year, with more buyers expected to enter the market. Although mortgage rates are projected to increase, they will continue to hover near record lows at around 3%. Moreover, expect economic conditions to improve with additional stimulus forthcoming and vaccine distribution already underway.”  Existing home sales for full year 2020 was 5.64 million, the highest level since 2006.

Manufacturing activity picked up in January.  According to IHS Market Manufacturing PMI rose to 59.1 from December’s 58.3, topping estimates for 56.5. Factory activity expanded, with production and new orders hitting highs last since in 2014.  In addition, job creation was the best in 2 years.  Supply chain delays, shortages in raw materials, and stockpiling at good producers caused input prices to climb at the fastest pace since April 2018.   Despite being a bit softer, business confidence continued to be strong.  

Have a great weekend.  Be safe and stay well.