Last week’s big events revolved around earnings, Greenland, Davos, and the global backup in yields triggered in Japan. Equities finished the week slightly lower with the S&P 500 equal-weight index modestly outperforming the main, market cap weighted index. This was a general continuation of the broad rotation in equity leadership we’ve seen so far this year.

Macro focus moved from ice-covered Greenland to ice-covered Washington D.C. The Fed meeting was a non-event, with rates unchanged. The new Fed chair nominee, Kevin Warsh, was finally announced. The start of this week saw the rotation come back on itself. We ended Wednesday with Mega Cap Growth stocks as the best performing group for the week up till then. The S&P 500 was outperforming the equal-weight index and small caps lagged. There were some big stock reactions to some big corporate earnings updates. The S&P 500 ended modestly higher for the week. First half gains, with the index briefly scaling 7000, were largely cancelled out by a second half pullback. The equal-weight trailed, lower by about 1%. However it was mega cap value and not growth that pushed the outperformance- telecom, energy, among the better groups this week. Small and mid-caps fell 1-2%.

The Winter Olympics starting next Friday and will be the appetizer to Super Bowl Sunday. Earnings will continue. In terms of economic data ISM surveys and the labor market data will be the most impactful data. The Warsh conversation will continue and there will be BoE and ECB rate decisions. The Treasury will also have it Quarterly Refunding announcement. The White House Crypto meeting on Monday will also get some attention. Have a great weekend!