Major indices are in the midst of a considerable pullback, as rotation out of Technology names is adding pressure. Outside the mega-cap universe, small and mid-caps are lower as well.

The magnificent seven are mostly moving lower. Amazon (AMZN) is the laggard following a German regulator ordering the company to stop imposing price control and ahead of earnings after the bell. Alphabet (GOOG/L) is also lagging due to an adverse reaction to earnings.

Only the defensive sectors of Utilities (XLU), Real Estate (XLRE), and Consumer Staples (XLP) are holding gains. Consumer Staples is getting a boost from a favorable reaction to The Hershey Company's (HSY) beat and raised guidance on earnings report. Utilities (XLU) are also getting an earnings boost from CMS Energy (CMS).

On the other side, Materials (XLB) holds the widest loss, facing some profit-taking after a strong week with plenty of earnings-related moves. Consumer Discretionary (XLY) is also lagging, led lower by retailers and poor earnings reactions, including Ralph Lauren (RL) and Oreilly Automotive (ORLY).

The Ten-Year Treasury Yield (TNX) is making notable move lower, down 6.5 basis point to 4.21% and breaking below its 200 day moving average.

Economic Data

The Challenger Gray and Christmas report saw 108,435 job cuts announced in January compared to 33,553 cuts announced in December. Transportation saw the highest number of job cuts, followed by technology, and healthcare. Amazon (AMZN) is contributing to many of the cuts in transportation and technology.

Meanwhile, the JOLTS report for December saw job opening fall by 386,000 to 6.542M, the lowest reading since September 2020, and below expectations of 7.2M. Notably, business services declined by 257K, retail trade fell by 195K, and finance and insurance lost 120K.

Job quits edged higher to 3.204M in December following 3.193M in November and marking the highest reading in 6 months. Quits rose in retail trade by 87K and information by 28K, while declined 151K in business services.

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