January 9, 2024

Markets:

U.S. stock futures fell Tuesday as rates ticked higher, zapping momentum from a tech-led jump in the previous session.

Shares of Juniper Networks popped more than 23% in premarket trading Tuesday after a report said HPE could announce a deal to acquire the networking hardware company for about $13 billion as soon as this week. Unity Software’s stock price gained 3% after the company said it would lay off roughly 25% of its workforce, and Netflix shares declined 1.9% on a Citi downgrade.

The benchmark 10-year Treasury note yield rose more than 4 basis points, trading above 4%.

Those moves come after a strong trading session for equities. The S&P 500 and the Nasdaq Composite on Monday rallied more than 1% and 2%, respectively, as mega-cap tech stocks bounced from last week’s declines. Nvidia shares reached an all-time high, climbing 6.4% during the session.

Later this week, investors will parse through a pair of key inflation readings to gain clarity into the path forward for rate cuts from the Federal Reserve. The December consumer price index is set for release Thursday, followed by the producer price index on Friday.

Portfolio:

Monster session yesterday and the price activity was absolutely beautiful. Our sectors led and the upside call volume we saw coming in through 2024 only strengthened our position that specific sectors will be chased this year. Leaders led and other stocks followed. Love to see this price activity. I view the last two weeks as healthy profit taking. We will take it day by day from here and focus on leaders and our sectors. Friendly reminder; 2024 will provide monster opportunity especially with the election cycle that is coming and all the opportunity this brings.

WE enter the new session holding positions in PATH, PLTR, NVAX, IOT, SOXL, and IONQ. Be ready and stay patient. We have earnings starting this Friday. One of our favorite periods of the year.