In today’s mid-day wrap from Goldman, markets are chopping around with the S&P trading in a narrow range of just 30 basis points. This is the tightest band since mid-September, as cyclicals give way to defensives for the first time this year. The GSP1CYDE is down 50 basis points, but off the morning lows by 80 basis points.

Yesterday’s themes are taking a breather today, with non-profitable tech down 130 basis points, mo winners down 30 basis points, and low profit R2K down 1%. Energy conference day 3 is underway, where keynote speaker Sec Wright spoke on Venezuela, stating that they want to change the game in VZ after a 25-year decline in the oil and gas industry there. He was also very bullish on nuclear power and electricity grids, but expressed concerns about emissions-focused energy/decarbonization efforts.

IPP weakness is a focus today, with VST down 6%, CEG down 3%, and TLN down 3%. Specialists have turned more negative on IPPs in recent months, and this trend continues into ’26. Casino/Macau weakness is also catching attention, with WYNN, LVS, and MLCO down 3-7%. Japan/China tensions overnight are the main driver, but December data was a tad worse than expected. Additionally, investors seem to be buying more laggards from 2025 and those exposed to tax refunds, rather than selling winners (especially WYNN) on the idea that compares in Macau are going to get really tough as we move through the year.

Our franchise sees overall activity levels up 46% versus the trailing two weeks, with market volumes up 22% versus the 10-day moving average. Our floor tilts 5% better to buy exclusively, driven by LOs.