Major indices are heading higher today with the Nasdaq Composite leading, up 1.34%. The S&P 500 and Nasdaq Composite attempting to rebound from five consecutive losses.

Fed Barking said earlier, in his prepared remarks on the 2025 outlook, that the economy remains in a good place. Moreover, he sees inflation approaching the Fed’s 2% target, but noted there is still more work to do.

*BARKIN: MUST SEE INF. AT 2% OR WEAKENING IN DEMAND TO CUT RATES

*BARKIN: LABOR MARKET AT A HEALTHY, NORMAL LEVEL

*BARKIN: SEE SIGNIFICANT PRESSURE FROM CONSUMERS ON PRICES

The Ten-Year Treasury yield (TNX) remains quiet at 4.575% following the better-than-expected ISM Manufacturing PMI (more below).

All sectors are in the green with Utilities (XLU) in the lead as Biden loosens rules for hydrogen subsidies that will provide subsidies not just to solar and wind, but also existing nuclear plants. The laggard is Materials (XLB), albeit it is still up by 0.32%.

Oil is continuing to rise as OPEC+ considers extending production cuts in 2025 and further Iranian sanctions are discussed.

On the economic front, the ISM Manufacturing PMI rose 0.9 points from the prior month to 49.3 in December, above expectations of 48.4.

Other notable Points:

• New Orders came in at 52.5 in December from 50.4 in November, recording the strongest level of demand for new goods in 11 months.
• Production expanded to 50.3.
• ISM Manufacturing Prices rose to 52.5 in December from 50.3 in November.

Market breadth is looking solid with advancers surpassing decliners by a nearly 3-to-1 margin at the NYSE and a 2-to-1 margin at the Nasdaq.

Have a great weekend.