Yesterday was tough sledding all session long as rotation picks up ahead of Nvidia’s (NVDA) financial release tomorrow.

The hot buzzword is ‘value,’ which was the best-performing factor across-the-board for style boxes.

Small Soldiers & Other Non-Growth Warriors

The S&P 500 Growth began slipping after Alphabet’s (GOOGL) earnings report. But for all the noise about equal weight, small-caps, and value growth continue to hang in there. Undoubtedly, it’s more vulnerable now, which feeds on itself.

Moreover, the high Beta nature of these stocks has a greater impact on down days. But 2% up days feel good, while 2% down days feel like the end of the world.

Rotation masked the fact that most of the S&P 500 traded higher.

Now, 77% of companies in the S&P 500 are trading above their 50-day moving average.

Let Them Eat Dinner Sausage

The Dallas Fed Manufacturing Survey was released yesterday. The headline score was -9.7, better than the consensus of -16.0 and an improvement from July's -17.5.

Production improved, but new orders and capacity utilization were lower. Moreover, prices paid for raw materials continue to rise. Wages and benefits were a bright spot, but employment and hours were both negative.

The report has been negative each month since May 2022, which might explain why demand is picking up for ‘dinner sausage.’ In the state famous for "beef, it's what's for dinner,” folks are adjusting.

Today’s Session

We are waiting on the consumer confidence read at 10:00 AM ET, other than that there isn’t a lot going on this morning. 

Additional economic data today.