Major indices are all in the green, albeit down from session highs. This comes as geopolitical tensions following Trump’s comments at Davos continue. Notably, small caps in the Russell 2000 continue to outperform.

Seven sectors are moving higher. Energy (XLE) is out in the lead as natural gas prices surge by over 20%, driven by expectations of colder weather. Materials (XLB) is the runner up, with steel names giving the sector a boost. On the flip side, Consumer Staples (XLP) is the laggard and being led lower by Kraft Heinz (KHC), after Berkshire Hathaway (BRK.B/A) indicated it may sell its 27.5% stake in the company in a prospectus filed with the SEC.

Trump made appeals to purchase Greenland and indicated force would not be used during his speech at Davos. However, the Danish foreign minister quickly turned down this proposal. Furthermore, the European Parliament halted its work on approving and implementing the US-EU trade deal agreed upon in July.

In other news, Supreme Court justices indicated they were unlikely to grant the Trump administration’s request to lift the prior ruling and immediately fire Fed Cook, while her legal challenge continues to play out.

Economic Data

Pending home sales fell by 9.3% M/M in December following a 3.3% increase in November and coming in below expectations of a 0.3% decline. This is the largest decline since April 2020.