Concern Behind the Smiles… New all-time highs can usually cover up for a lot, but even with the SPX, Nasdaq, NDX, and Russell 2k all still in the running for a fresh one today, things still haven’t felt quite right of late. Of course some of that is simply investors being distracted as they watch in shock and horror (and a little jealousy) at the moves that being manufactured by the Reddit/Retail army, but more than that it seems the market is waiting for a signal to inform where to go next after entering this latest period of Rotation hesitation. Earnings season should provide more than enough tangible guidance (fundamentals have to matter some time, right?) but even with a number of companies reporting this morning, it still feels like the market is waiting to see what the “Big Guns” have to say, beginning with Microsoft (MSFT +1.6%) after the bell. That’s left most indices drifting around their flatlines in nervous anticipation, with the S&P sector table displaying a bit of a defensive tilt. That means Food Retail and Real Estate have been hovering near the top, along with more FAAMG-related Media (Is TWTR +4% because they banned the My Pillow guy?) and Software. Cap Goods are mildly negative amid an earnings tug-of-war between winners (GE +5%, MMM +3%, and RTX +4%) and the less fortunate (ROK -4%, LMT -3%, and PCAR -2%.) Telcos are lower as Verizon (VZ -3%) reporting a cut fiber cable in Brooklyn has resulted internet outages on the East Coast (luckily all of the Redburn WFH crew still up and running). Energy is the biggest laggard despite Crude remaining fairly steady.
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