The market had a clear runway but stumbled into the close yesterday.

The session wasn’t a disaster, but it was surprising to see momentum slow down.

What’s emerged this earnings season is the fact there isn’t a lot of organic revenue growth, which means stocks are being rewarded for management prowess. The most active names also revealed investors buying unloved Technology (XLK) names.

No Pricing Power

There is no pricing power in this inflation era, which means it is critical to dot those i’s and cross those t’s.

Inflation Surprises Changes How We Grade Management

According to Bloomberg, there has been a surge in higher inflation reads and many growth misses.

Execution

Walmart’s (WMT) execution, including faster deliveries, was handsomely rewarding. Of course, Walmart is very unique and perfectly positioned to use its footprint and legacy of management skills.

The damage in Material (XLB) names is alarming.

I’ll be closely watching Consumer Discretionary (XLY), as I have severe misgivings about most consumers' strengths (or lack thereof).