The changing leadership in Artificial Intelligence (AI) was on full display on Friday. While it hurts the overall averages, it pushes back on the notion that the AI trade is over. The housing recovery also gained momentum.

Factors

Midcaps appear to be the jackpot on a slot machine. The S&P 400 Mid Cap (MID) Index is breaking out nicely.

Momentum Flips

On the other hand, midcaps are often accompanied by momentum stocks, which can surprise investors when they turn lower. Individually, some of these names took big hits on Friday, so make sure you can handle high Beta risks right now.

After the Jobs Report

There is a sense of foreboding in the air. I delve into detail about the historic angst over the missed jobs report and tomorrow’s annual jobs revision in Payne’s Perspective.

Today’s Session

It’s a quiet morning with futures in the green, along with crude oil, gold, and crypto. The only economic report today is the NY Fed’s Survey of Consumer, with the focus on inflation expectations.

 The main focus this week will be on Wednesday’s PPI and Thursday’s CPI reports