Stocks Off Highs After Jan. Philly Fed Survey

Stocks off their highs as the January Philly Fed survey came in below expectations; more importantly, the prices paid component (an indicator of inflation) rose from 47.9 to 54.3. Above 50 indicates expansion.

Momentum weakens. It is not unusual to have a dip in the middle of January (we had one last year), and we are in the second day of a modest decline.

Technicians have been expecting this for weeks, since 1) bullishness remains high, and 2) with the exception of a couple weeks in November, we have gone nowhere but up since September.

So it should not surprise anyone that:

1) IBM and Apple's stellar earnings are not advancing techs;

2) the other leading sector, commodity stocks (energy and materials) are selling off for the second day in a row on: a) a strong GDP report from China, leading to concerns of higher rates there, and 2) the same technical factors affecting techs (two year highs for energies and material indices)

Bookmark CNBC Data Pages:



Want updates whenever a TraderTalk blog is filed? Follow me on Twitter:

Questions? Comments?