Factory orders slipped 1.6% after increasing 1.7% in December but beating consensus of a decline of 1.8%. A plunge in demand for civilian aircraft caused the drop; however, an increase in machinery and other products indicate that manufacturing could be regaining its footing.

Eight of eleven S&P 500 sectors are higher on the session, with Materials (XLB) stumbling hard. Information Technology (XLK) is at the top of the list, powered by semiconductors, which continue to come on strong. High Beta stocks are faring well once again.

Interestingly, breadth is negative in the NYSE and Nasdaq with more decliners than advancers.

The rally is losing steam as investors eye Powell’s testimony tomorrow.