Tech weakness continued yesterday as semis and memory names joined software’s slide. AMD traded sharply lower following earnings, which took the semis/memory group down with it. The ICE Semis index fell over 4%. Software was again under pressure but rallied in the second half of the day to finish down 1.8% but well off its lows. After trading below the 50d moving average ~6875 the S&P showed a little bounce towards the end of the day to push back above before ending essentially right on it. The underlying metrics were more positive, however as the equal-weight rose over 1%. Materials, Energy, Real Estate and Healthcare sectors all rose 1%, with Financials right behind.

Alphabet’s earnings last night set the table for today’s action. The print included a huge capex increase for next year. The S&P opened down 0.7% and reached as low as -1.5%, currently down about 1%. The weakness today is broader than recent sessions as the equal-weight and small caps bracket the S&P, though again profitable small caps are outperforming.

Comm Services is middle of the pack- Meta and Alphabet are cancelling each other out, media is lower but telecom and Netflix are higher. Tech is a slight laggard with software still under pressure and hardware and select semis names lower. Materials (chemicals, miners) and Discretionary are the worst off today. Auto retail, apparel, travel and leisure are all lower while Amazon falls 5% ahead of earnings. Staples is the only sector firmly in the green, up modestly though performance is mixed across the sector.

Treasury yields were around unchanged but began to fall after the Challenger print and continued lower after claims and JOLTS data. Despite the drop in yields the Dollar is stronger on most of the major crosses.

Commodi-tility (MAC-desk trademarked) continues this morning. Silver is down 10% and sitting around its 50d ma ~$75. It’s traded in a $20 range today, $70-$90. Gold is doing a little better, down 2%. Like a Tom Petty lyric, Bitcoin is free falling. We called out the $70k yesterday and it broke below that and is quickly approaching $65k. It’s in a ~50% drawdown since October. Strategy reports tonight in what should be an interesting read on the state of Bitcoin. Ethereum is breaking big round numbers too, now sub-$2000. Crude is down ~3% with some positive developments in Russia-Ukraine and Iran situations, as well as soft labor data.