Calm on the Surface… Granted things are looking a bit more exciting this afternoon as equities are finding their footing, but this morning’s choppy trading around the unchanged mark might’ve suggested there’s not much going on for the market to digest. An ongoing (second) impeachment vote, several Fed speakers making comments, President-elect Biden scheduled to reveal details of his stimulus plan tomorrow: these are things investors have grown accustomed to coping with coolly. Still the S&P intraday chart masks the underlying churn, as markets are seeing a bit of a reversal of the reflation/rotation trade that’s been in focus recently. Tech has wrestled back a spot at the top of the sector charts (NYFANG +1.2%) along with more defensives Utilities / Real Estate, while Intel (INTC +7.6%) is chipping in to help Semis after replacing its CEO with VMWare (VMW -7.2%) CEO Pat Gelsinger. Target (TGT -0.9%) also a splash this morning announcing a holiday sales blowout, but with expectations already so high the news received little reward (though XRT +0.2% is pushing for yet another ATH). On the flipside it’s the value/cyclical sectors that have popped recently that are lagging today: Banks, Materials, Autos bring up the rear.
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