The S&P 500 (-0.4%), Nasdaq Composite (-0.9%), and DJIA (-0.4%) retreated amid relatively broad weakness in the stock market today, though they improved from session lows throughout the afternoon. The Russell 2000 (-1.6%) and S&P Mid Cap 400 (-1.0%) finished with wider losses both for the session and for the week. 

It has been a busy day from a headlines perspective, with the buzz starting well before the opening bell. 

Perhaps most notably, former Fed Governor Kevin Warsh was nominated by President Trump to be the next Fed Chair. The decision did little to the market's implied monetary policy path expectations, and equity futures and the U.S. Treasury market reacted calmly to the news, though several other headwinds were already pressuring stocks.

Gold and silver faced a massive retreat today after an extended run through record territory. Gold finished 11% lower today, while silver dropped 32%. Unsurprisingly, the materials sector (-1.8%) faced the widest loss, with Newmont Corporation (NEM 112.33, -14.60, -11.50%) and Freeport-McMoRan (FCX 60.22, -4.91, -7.54%) among some of the worst-performing S&P 500 names today. 

The top-weighted information technology sector (-1.3%) was another notable laggard, as the reaction to this week's mega-cap earnings reports continues to be underwhelming. Despite a sizable earnings beat, Apple (AAPL 259.48, +1.20, +0.46%) traded lower for most of the day before squeaking out a modest gain. Microsoft (MSFT 430.29, -3.21, -0.74%) also failed to garner any buy-the-dip interest after a double-digit retreat yesterday. The Vanguard Mega Cap Growth ETF finished 0.8% lower, with two consecutive days of weakness moving it into negative territory for the week. 

Chipmaker names also faced pressure, sending the PHLX Semiconductor Index 3.9% lower. KLA Corporation (KLAC 1427.94, -256.77, -15.24%) was a notable laggard despite topping earnings estimates. Sandisk (SNDK 576.25, +36.95, +6.85%) soared nearly 20% after a blowout earnings report of its own but saw gains steadily eroded amid increasing pressure across its peers. 

While seven S&P 500 sectors closed with losses, the materials and technology sectors were the only sectors to finish more than 0.3% below their flatlines as the broader market generally improved throughout the session. 

The defensive consumer staples (+1.4%) and health care (+0.6%) sectors both outperformed amid weakness in growth stocks.  Colgate-Palmolive (CL 90.31, +5.07, +5.95%), Church & Dwight (CHD 96.27, +4.31, +4.69%), and Stryker (SYK 369.46, +15.16, +4.28%) all posted solid gains after earnings. 

The energy sector (+1.0%) also finished higher, with Chevron (CVX 176.89, +5.70, +3.33%) leading the strength after its earnings release, while the real estate sector (+0.1%) eked out a slight gain. 

The consumer discretionary sector (-0.1%) just missed out on a gain, though the fact that it was anywhere near its flatline given how few of its components traded higher is impressive. 

Tesla (TSLA 430.41, +13.85, +3.32%) saw a solid rebound from yesterday's post-earnings weakness following a Bloomberg report that Elon Musk's SpaceX is considering a merger with the EV giant or xAI as an alternative to a traditional IPO.

Elsewhere, Deckers Outdoor (DECK 119.28, +19.38, +19.40%) was the top-performing S&P 500 name today after a blowout earnings report. 

Other notable earnings moves include Verizon (VZ 44.52, +4.71, +11.83%), American Express (AXP 352.23, -6.27, -1.75%), and Visa (V 321.87, -9.93, -2.99%).

Looking ahead, the market remains firmly in earnings mode, with several high-profile mega-cap reports, including those of Amazon (AMZN 239.30, -2.43, -1.01%) and Alphabet (GOOG 338.53, -0.13, -0.04%), still on deck that are likely to dictate near-term direction and determine whether this week's pullback proves to be a pause or the start of a deeper consolidation. 

U.S. Treasuries finished January in mixed fashion, with 5s and shorter tenors recording gains while longer tenors lagged, ending with slim losses. The 2-year note yield settled down two basis points to 3.53% (-7 basis points this week; +5 basis points in January), and the 10-year note yield settled up one basis point to 4.24% (UNCH this week; +7 basis points in January). 

• Russell 2000: +5.3% YTD
• S&P Mid Cap 400: +4.0% YTD
• DJIA: +1.7% YTD
• S&P 500: +1.4% YTD
• Nasdaq Composite: +1.0% YTD

Reviewing today's data:

• December PPI 0.5% (Briefing.com consensus 0.2%); Prior 0.2%, December Core PPI 0.6% (Briefing.com consensus 0.3%); Prior 0.0%
  • The key takeaway from the report is the lingering 3-handle on the year-over-year changes, which will keep alive concerns about pass-through (to the consumer) and possible margin compression (for wholesalers and retailers) if they don't pass through their higher costs.
• January Chicago PMI 54.0 (Briefing.com consensus 43.0); Prior was revised to 42.7 from 43.5