The market is heading into the weekend perhaps seeking clarity more than a catalyst. There is a lot going on, and most of it centers on the nomination of Kevin Warsh to lead the Federal Reserve (more on this on Monday’s Payne’s Perspective).

The dollar rose today following the nomination and is adding heavy pressure to Gold and Silver. The dollar’s advance makes the precious metals more expensive for foreign buyers.

The weakness in software names continues, and it is bolstering the argument these names are getting cheap on an absolute and relative basis.

Consumer Staples (XLP) and Health Care (XLV) are catching a bid amid profit taking in large cap tech names.  Materials (XLB) is facing the widest loss, as gold and silver face a sharp retreat.

This morning’s PPI came hotter-than-expected with monthly PPI for December jumping 0.5% M/M, surpassing consensus of 0.2%. Core PPI was even more surprising, at 0.7% M/M, and pushing the annual core to 3.3% vs. 2.9% consensus.

The Chicago PMI for January rose to 54, crushing expectations of 44 and moving back into expansion. This is the highest reading since November 2023.

For now, the market remains on the back foot.