Today’s session has been nice and orderly, so far.  The major indices are in the green currently but have been in and out of positive territory.  The NASDAQ is the best performing sector up .5%.

Seven of the 11 S&P 500 sectors are in the green.  Energy is the best performing sector. WTI crude is up 1.73% to $55.70 per barrel.  EIA data showed a decrease in U.S. oil inventories of 0.994 million barrels, marking the second week of declines.  Progress on the stimulus package is helping to support crude.  Plus, OPEC+ nations have indicated they believe that by June, inventories will fall below the five-year average.

The safe havens are lagging. 

Breadth is positive, and the up volume far exceeds the down, almost 5 to 1 on the NASDAQ. The new highs continue to gain momentum.

January ISM Services PMI rose to 58.7 from December’s 57.7, topping estimates for 56.8. This was the best read since February 2019.

Anthony Nieves, Chair of the ISM Services Business Survey Committee stated, "Respondents’ comments are more optimistic about business conditions and the economy. Various local and state-level COVID-19 restrictions continue to negatively impact companies and industries. Production capacity and logistics issues continue to cause supply chain challenges.”

While new orders expanded faster than expected, pricing pressure remained high.

-New orders stronger 61.8 vs 58.6

-Business activity and prices paid cooled but still expanding

-Employment stronger 55.2 vs 48.7

-New export orders contracting for 1st time since July 2020

-Pricing pressure 64.2 vs 64.4