Next Day Prep: Sector Shift Sparks Frenzy Watch the Rotation
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Market Briefing: Next Day Prep – Tuesday, January 13th, 2026
Intro & Market Mood
The market is currently in a state of cautious anticipation with a slight bearish undertone. Despite recent data releases and earnings reports, the overall sentiment remains subdued. Sector rotation is evident, with a notable shift from financials to defensive sectors and growth areas.
Overnight Headlines
- The December CPI figures showed a slight increase, but the market reaction was lackluster, indicating a “sell the news” sentiment.
- Financial sectors faced pressure following President Trump’s proposal for an interest rate cap on credit cards, impacting companies like Visa and Mastercard.
- Energy sector saw gains driven by geopolitical tensions, with crude oil prices climbing over two and a half percent.
Economic Announcements
Keep an eye on the upcoming PPI data release at 8:30 AM for potential market impact.
Earnings Highlights
JPMorgan Chase reported mixed results, with a drop in stock price due to missed GAAP EPS and revenue figures. Other banks like Citigroup, Wells Fargo, and Bank of America face pressure ahead of their earnings reports.
Top Movers
- R-V-M-D: Healthcare and selective Consumer Discretionary sectors showed strength, with potential continuation opportunities.
- Burlington Stores (B-U-R-L): Retail sector signaled potential resurgence with steady accumulation and a breakout opportunity.
- CyberArk (C-Y-B-R): Tech sector outperformed, especially in chip companies like AMD and Intel, presenting a tactical trade opportunity with room for growth.
Quick Trade Ideas
Watch for potential pullbacks in strategic sectors like Healthcare and Discretionary for entry points. Be cautious with renewable and solar stocks that showed late-day weakness.
Key Takeaway
Stay nimble and watch the SPY support level at 690. Focus on continuation plays in resilient sectors and monitor for any shifts in the market trend.