The country is digging out from yesterday’s snowstorm but US equities already dug out of their hole after futures sold off overnight. S&P futures opened down >0.5% but managed to start the cash session slightly positive, unlike the Bronco and Ram fan bases. After the open, the S&P made a quick jump higher and has casually extended those gains the rest of the day. As we go to print, the S&P is up 0.7%, leading the equal-weight and the small caps, which are flat to modestly lower.

10 of 11 sectors are flat to higher, however, with only Discretionary firmly in the red. Comm Services and Tech are leading today as large and mega cap growth show the way. The semis are mixed overall but software is mostly higher across the group. Utilities are also trading well, as everyone is cranking their burners and heat pumps at the same time right now. Consumer Discretionary is the only sector lower with restaurants weak.

Yields were modestly lower overnight, came back to unchanged but are back to slightly lower, about 1bp across the curve. The 2yr auction this afternoon was strong, stopping through by 1.4bp. The US Dollar came under significant pressure on Friday after rumors of a “rate check” by the NY Federal Reserve, surveying banks before a possible FX intervention in the US-Yen market. The weakness continued this morning with the Yen strengthening by ~1% versus the currency, having moved from ~158/$ on Thursday to 154 currently.

Oil prices turned slightly lower again after moving into the green earlier, as Ukraine/Russia talks continue. Front month (February) natural gas has jumped 30% today, blowing right through $6 and reaching ~$7.50 before coming in slightly to ~$7. March futures were up 10% at one point, currently 6% higher. The Feb futures expire January 28. Precious metals are working hard to keep pace with nat gas. Silver was up another 14% to $115 but has come back in a bit, now +6% at $107. Gold, platinum and palladium are losing steam after being up 2-7%.