Good morning. It’s been an interesting few days atmospherically in NYC as Canadian wildfires once again send smoke and the smell of a fireplace descending on the city. Market moves have been interesting as well. The S&P ended Wednesday up 0.4% with the Russell 2000 inline and equal-weight falling 0.2%. Yields fell 2-6bp on a cool PPI print and dovish comments from NY Fed President Williams. Megacap tech and the hyperscalers posted solid gains, pushing Comm Services and Consumer Discretionary to the top of the leaderboard. There was a divergence in tech overall however as semis and memory names were under pressure (ICE Semis -2%, DRAM -6%).

Equity futures are under a bit of pressure this morning, centered around tech and in particular semis. The super-charged memory names continue to pull back (MU, SNDK, WDC down 5-7%). S&P futures are at their lows down about 0.3%. However the Dow is higher with component UNH up on earnings. In Iran news, President Trump is leaning toward expanding military operations in Iran, according to the WSJ. On the other hand, Iran released an American citizen held for over a year, a an action that Trump called a gesture of goodwill.

Treasury yields are up ~4bp across the curve. The move is reversing yesterday’s decline on the long-end. The US Dollar is up as well. Retail sales on both the headline and control group were inline with expectations but the growth slowed from last month. Jobless claims continued to stay low. Brent crude is up 1% this morning, breaching $85 and putting WTD gains at ~13% as it looks to break through the 50/100d ma. Gold and silver are lower. Gold has been trading between $4000-$4100 for most of the past 3 weeks. Ag is slightly lower, as is Bitcoin and Ether. President Trump is expected to meet with Senators today to discuss the CLARITY Act’s standing.