Rotation out of Tech Stocks Weighs on the Broader Market

Economic Indicators - Initial weekly unemployment claims are expected to increase by 3,000 to 212,000 [1] - The University of Michigan Jan consumer sentiment index is expected to fall by 1.4 to 55.0 [1] - US MBA mortgage applications fell by 8.9% in the week ended January 30, with the purchase mortgage sub-index down by 14.4% and the refinancing sub-index down by 4.7% [1] Treasury and Government Funding - Next week's quarterly refunding will total $125 billion in sales of T-notes and T-bonds, with auction sizes expected to remain unchanged for the next several quarters [2] - Market sentiment improved following the end of the partial US government shutdown, with funding for the Department of Homeland Security through February 13 and the rest of the government funded through September 30 [2] Stock Market Performance - Stock indexes are mixed, with the Nasdaq 100 falling to a 2-week low due to investor rotation out of high-flying chipmakers and AI-infrastructure stocks [4] - The S&P 500 Index is down by 0.11%, while the Dow Jones Industrials Index is up by 0.69% and the Nasdaq 100 Index is down by 1.05% [5] Earnings Reports - Q4 earnings season is in full swing, with 80% of the 195 S&P 500 companies that have reported beating expectations [6] - S&P earnings growth is expected to climb by 8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [6] - Super Micro Computer is up more than 13% after forecasting Q3 net sales well above expectations, while Advanced Micro Devices is down more than 15% after a weak Q1 sales forecast [4][15] Company-Specific Movements - Eli Lilly is up more than 10% after reporting Q4 revenue of $19.29 billion, stronger than the consensus of $18.01 billion [16] - Boston Scientific is down more than 15% after forecasting full-year adjusted EPS below consensus [13][14] - Silicon Laboratories is up more than 49% after agreeing to be acquired by Texas Instruments for $7.5 billion [15]