Money Is Finally Rotating Back Into Tech
Updates on ES, NQ, SPY, QQQ.
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Our View
Yesterday’s action wasn’t a complete surprise, given some of the historical action of the post-MLK Day action.
However, the big story of the day was that Goldman Sachs’ profit tumbled 66% to $1.33 billion in the fourth quarter, well below what Wall Street had expected. Morgan Stanley's earnings fell 40% to $2.2 billion, barely beating analysts’ expectations.
Goldman’s 6.5% tumble weighed on the Dow, which fell more than 1% on the day, while the rest of the indices were near flat.
As for today, we have the PPI report and retail sales report due up at 8:30 a.m. ET (results below). On the earnings front, nothing particular stands out until tomorrow (when we get PG, NFLX).
Our Lean — Update on CPI
The weakness in the Dow and YM pretty much overshadowed the ES and NQ — even though the latter two both closed higher.