TGIF - After hitting a new high yesterday, the S&P 500 is taking a cautious approach as it heads into the weekend. Yields remains the story, and after another tepid CPI yesterday, the PPI today showed that prices are rising (+2.8% y/y versus estimates of +2.7%). That has not moved towards the consumer, but at some point it will. With it’s animosity towards higher yields, Tech is underperforming once again, but Banks have been slowly giving up their gains (only +1.1% vs +2.1% at it’s high), and Utilities have moved into the top spot. Can’t really remember when they’ve done that recently, so tough to read into the XLU move! Next week investors will hear from the FOMC (Wednesday), and also get the latest from Retails Sales (estimates are -0.7% m/m). That latter datapoint is for February, so maybe too soon for stimulus checks to impact.
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