It is a choppy session and somewhat expected following yesterday’s strong move. The S&P 500 is testing its short-term resistance and its 50-day moving average.

The ten-year treasury yield (TNX) is continuing to trend lower, down 3.6 basis points and approaching the 4.6% level.

Only Consumer Discretionary (XLY) and Communication Services (SLC) are in the red. Utilities (XLU) are the frontrunner, up 1.95%.

The Philadelphia Fed Manufacturing index came in stronger than expected. The strong number was driven by the massive increase in new orders +42.9 vs. -3.6 in December. Notably, inventories increased to 11.7 vs. -3.8, which could be due to tariff uncertainty.

The six-month business conditions index also rose to 46.3 in January from 33.8.

The Philly Fed employment index also shot up by 7 points to 11.9 in January from 4.8, which indicates increased hiring activity.

The NAHB/Wells Fargo Housing Market Index rose to 47 in January driven by higher present sales and buyers’ traffic. Builders remain optimistic, but wary of raising mortgage rates and tariffs.