Major indices are moving higher while the Volatility Index (VIX), or fear Index, is moving sharply lower, as anxiety subsides.

Magnificent Seven names are all higher, with Tesla (TSLA) rebounding into the lead after Elon Musk highlighted their AI chip business and capabilities.

Eight sectors are moving higher, with growth sectors, such as Technology (XLK) and Consumer Discretionary (XLY), leading the pack. Meanwhile, the defensive sector of Consumer Staples (XLP) is the laggard as investors rotate.

Notably, Health Care (XLV) is also getting a boost. This comes after reports that Trump is preparing to roll out a new Affordable Care Act framework, including a 2-year extension of Obamacare subsidies. The plan is expected to include income caps at about 700% of the federal poverty line, require minimum premium payments, fund cost-sharing reductions, and allow enrollees to redirect part of their tax credit into a savings account when choosing a lower-premium plan.

The Dallas Fed’s General Business Activity Index fell to -10.4 in November from -5 last month.

Notable Points:

• Outlook Index fell 6 points to -6.3
• Outlook Uncertainty Index fell 7 points to 15.7
• Employment Index was flat at 1.2
• Raw Material Prices Index advanced 2 points to 35.3
• Finished Goods Prices Index increased 3.1 points to 10.8
• Wages Index was flat at 15.4
• Manufacturing production rose 15 points to 20.5
• New orders went up 6.5 points to 4.8
• Shipments Index increased 9 points to 15.1

Regarding the special survey questions, respondents saw operating margins decrease over the last 6 months; however, they are expecting an increase in operating margins over the next 6 months.