All major indices are up today as the Street combs through the latest quarterly results. The S&P 500 broke above the 5,800 level helped by bank stocks.

The Invesco S&P 500 Equal Weight ETF (RSP) broke out and has begun to gallop hard.

The KBW Bank Index (BKX) helped lead the market higher today after favorable bank earnings reports were released this morning.

Market Movers and Themes

Financials (XLF) are the best performing sector this afternoon, followed by Industrials (XLI). There are only two sectors in the red Consumer Discretionary (XLY) and Technology (XLK).

Dallas Fed President Lorie Logan repeated her view for a “gradual” rate cut, emphasizing caution in cutting.

“It’s really important to look ahead as we chart this path toward neutral, and that we do so in a very gradual way to balance the risks that we have.”

Chicago Fed President Austan Goolsbee reiterated this gradual messaging as well.

"Over a 12-18 month period, I think we are going to gradually, whatever word you want to use, move to a steady state"

He also stated that inflation has cooled, and the labor market remains strong, rebuffing claims the economy is overheating and fueling the soft-landing narrative.

On the economic front, the Consumer Sentiment index declined to 68.9 from 70.1 in September, missing consensus of 71. Short term inflation expectations increased due to higher gas prices, while long term expectations slightly declined.

• 1-year inflation expectations 2.9% vs. 2.7% prior
• 5-10 year inflation expectations 3% vs. 3.1% prior.