Investors rotated back into Technology and mega cap growth names yesterday.

The session was mixed with Materials outperforming and Utilities lagging.

Breadth was positive and up volume exceeded the down.  On the Nasdaq, however, there were more new 52 lows than high.

Portfolio Approach

There are no weighting changes to our Hotline Model Portfolio.

Today’s Session

The major indices are positive but well of the highs of this morning.  Johnson and Johnson (JNJ) is the latest company to announce it is splitting into two companies.  The news is helping to push the Dow higher.

On the economic front, the University of Michigan U.S. consumer sentiment preliminary read of 68.8 was the lowest level in 10 years, and well below expectations for 72.4 and October’s 71.7.

Inflation continues to weight on consumers and the inflation expectation for next year rose to 4.9 from 4.8, albeit the 5 year was unchanged, which speaks to the transitory nature of some of the inflation.

• Current conditions 73.2 from 77.7
• Expectations 62.8 from 67.9

The October JOLTS (job opening and turnover report) showed the job opening declined by 191,000 to 10.4 million jobs opening in October from September.  The number was a disappointment as expectations was for a decline to 10.3 million.  We will have more in the afternoon note.