Major indicies are heading higher driven by several favorable earnings reports, the PPI report, and a drop in yields.

What the CPI did for yields yesterday, it has now been undone by the PPI. Yields erased yesterday’s gain with the 10-year yield now at 4.53%.

The leading sector is Materials (XLB), led higher by the packaging company Smurfit WestRock (SW), rebounding following its poor fourth quarter results. The only sector in the red is Industrials (XLI), led lower by airline and defense companies.

In addition to PPI, both Initial and Continuing Jobless Claims came down in the first week of February below the consensus.

Today’s 30-year treasury auction was an ugly one. The 30-year bonds sold today were worth $31.9 billion, had a Bid to Cover of 2.33, and a high yield of 4.748%.