In today’s mid-day wrap, we provide insights into the software and healthcare sectors. Our analysis focuses on recent price actions, momentum, and flows in these two industries.

Our data reveals that the software sector (S5SOFT Index) underperformed the semiconductor sector (SOX) by around 13.5 points last week. This marks the biggest weekly spread since 2007. We attribute this to momentum finding its footing again, positive semis headlines/price action, and software cover bid likely abating after a ~20% move in the sector off the Citrini low-tick.

The healthcare sector is currently in the spotlight following comments from a competitor conference. GEHC trading is down by 280 basis points due to concerns about middle east exposure and competitive comments. CNC trading has declined by around 10.5% after flagging high utilization patterns in specialty pharmacy, particularly within the silver tier of their ACA hix business.

Our data shows that top-of-book liquidity stands at $4.53 million, which is down by around 25% compared to the 20-day moving average. Market volumes are also suppressed by around 25% versus the 20-day moving average. ETFs’ percentage of market volumes remains elevated at 39%.

We assess overall activity levels as a 3 out of 10, with flows skewed 3% better for sale across the floor. Within this, LOs (largest owners) are skewed better for sale primarily due to supply in macro products versus immaterial demand in materials. HFs (hedge funds), on the other hand, are skewed better for sale with supply in info tech and financials versus demand in healthcare, consumer disc, and macro products.