Major indices are firmly lower across the board, with gains seen at the open quickly evaporating. The small and mid-caps represented in the Russell 2000 are lagging. The Volatility, or Fear, Index (VIX) broke above the 20 level.

Most magnificent seven stocks are lower, with Apple (AAPL) as the laggard of the pack, after reports that some new Siri features will be delayed. Alphabet (GOOG/L) is the best performing of the pack, after announcing an upgrade to Gemini 3 Deep Think.

The more defensive-oriented sectors are exhibiting relative strength. Utilities (XLU) are in the lead and getting a boost from several favorable earnings reports, including Exelon (EXC), Ameren (AEE), and American Electric Power Company (AEP).

Meanwhile, Financials (XLF) are lagging with bank and brokerage stocks, leading the sector lower. The AI disruption fears continue, following the recent launch of Altruist’s AI powered tax planning tools. Technology (XLK) is also lagging, with Cisco (CSCO) contributing to the move lower after the company reported earnings that beat on top and bottom lines, but missed margin expectations, in part due to higher memory costs.

The AI disruption theme is also making its way to the trucking industry. In addition, the segment has also been broadsided by the Department of Transportation’s final rule to stop unqualified workers from obtaining licenses to drive commercial trucks and buses.

The Ten-Year treasury yield (TNX) is down 4.9 basis points to 4.123 and continuing below its 50 moving average.

Economic Data

Existing home sales fell 8.4% M/M in January following a 4.4% rise in December. This marks the largest drop since February 2022.

Initial Jobless Claims for the week ending on February 7^th fell to 227K from 232K in the prior week, surpassing estimates of 222K. Furthermore, Continuing Jobless Claims for the week ending on January 31^st rose to 1862K from 1841K and above consensus of 1850K.

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