It is an encouraging session with major indices attracting buyers throughout, rebounding after yesterday’s sell off. The dust seems to have settled for S&P 500, which broke above its 50-day moving average.

Mega-cap stocks are playing an important role in today’s action.

Ahead of tomorrow’s FOMC meeting, the ten-year yield (TNX) is up 4.7 basis points to 4.575%.

Three out of eleven sectors are in the green, with Technology (XLK) rebounding into the lead. Utilities (XLU) is the clear laggard as yields rise.

The Fear & Greed Index has edged back into Neutral territory.

Economic Data

The USA House Price Index rose by 0.3% m/m in November, slower than the 0.5% m/m increase in October and slightly above estimates of a 0.2% increase.

The Dallas Fed Services Index eased to 7.4 in January, from 10.8 in December.

The January Richmond Fed Manufacturing Index rose to -4, from -10 in December.

Conference Board Consumer Confidence echoes what we saw in University of Michigan Consumer Sentiment. The index fell in January to 104.1, from 109.5 in December. Inflation expectations rose, while views of the labor market were dim.

Atlanta Fed GDP Now for Q4’24 rose to +3.2% q/q, from +3.0% last week. Inventories is still the only component with a negative contribution.