After breaking to all-time highs, stocks edged slightly higher to start the new trading week. This bullish sentiment is fueled by robust economic indicators, despite concerns that the market's rapid ascent might have run too far, too fast. Investors are now increasingly optimistic about a 'soft landing' scenario, where the economy not only remains resilient but also sees inflation gradually aligning with the Federal Reserve's 2% target. In the realm of fixed income, there's a noticeable uptick in yields, with figures climbing from 3.9% to 4.1% since the year's start. The week ahead is packed with treasury auctions, which are likely to be a critical focus for traders. These auctions are expected to significantly influence yield repricing.

Internally, the divergence noted last week between breadth and the overall index level is starting to close in favor of the bulls. Newton scores are showing increased improvement in Large Caps compared to their smaller cap counterparts after the shift began last week. On the fixed income side, we are still seeing more strength out of the short end of the curve as the 10-year Treasury has climbed. Beneath the surface, Technology is on top for the first time this year followed closely by Communications. Utilities and Energy are the laggards.

In economic news, we get a key read on economic growth with the Q4 2023 GDP preliminary report. Estimates are for a 1.7% increase compared to the previous 4.9% boost. Additionally, we will get a read on the Fed's preferred measure of inflation; the PCE index. Estimates are for a 3% YoY increase for core compared to the previous 3.2% read.