There have been 44 record-high closes this year, but the market doesn’t feel remotely bullish. Conversely, it doesn’t feel particularly bearish, either.

The problem is there is no oomph or follow-through, even though most bias arrows point north.

Three sectors finished the session higher yesterday, but a few stocks offset what could have been an ugly session.

Moreover, short-term breadth should be much better, and more than 46% of names on the S&P 500 should be changing hands above their 20-day moving average. The rally is starting to feel “janky.”

Everything Feels “Janky”

Yesterday, in an interview, Atlanta Fed President Raphael Bostic said the latest inflation data was "janky," or exhibiting the kind of choppiness he has long anticipated. Ironically, I think it's not just inflation data but primarily government data.

Even mind-boggling proclamations from Wall Street's favorite CEOs are being dismissed as “janky.”

Maybe Some of the Slides were “Janky?”

Maybe it wasn’t the pace of Artificial Intelligence (AI) growth that was unbelievable, but the chips Advanced Micro Devices (AMD) shared with the audience. What good is being in a sizzling market without the products that make it sizzle?

I do not know enough about the nitty-gritty of the latest AMD chips, but I read there were some dubious presentations, which is why that stock was slammed as NVDA continued to soar. It will be interesting to see if AMD can right the ship in today’s session.

Big Banks at the Plate

Big banks kick off earnings season today. The KBW Bank Index (BKX) is on the launch pad and wants to break out. 

Conversely, a significant gap could be filled quickly with a series of companies missing the consensus.

Today’s Session

This morning, a slew of bank earnings was released. There were, for the most part, no negative surprises.

JPM:

Revenue: $43.32 billion (Est. $41.63 billion)

Earnings: $4.32 (Est. $4.01)

Investment Banking Fees: +31% (Est. +16%)

Net Interest Income (NII): $23.5 billion (Est. $22.33 billion)

WFC:

Revenue: $20.37 billion (Est. $20.41)

Earnings: $1.52 (Est. $1.28)

NII: $11.69 billion (Est. $11.88 billion)

Total Deposit Average: $1.34 trillion (Est. $1.35 trillion)

Producer Price

On a year-over-year basis, Producer Prices were higher than consensus.

• Headline: 1.8% vs Est. 1.6%
• Core: 2.8% vs Est. 2.6%

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