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Shopify reported better than expected quarterly profit and revenue. The e-commerce platform operator nonetheless is seeing its stock drop 9.5% in pre-market as it forecasts a slower growth for 2022, than the 57% growth it achieved in 2021. We are seeing a similar pattern for dynamic high-growth names, in which a slight growth deceleration can pressure stocks to the downside, at least in the short term. Valuation for Shopify stock has compressed significantly, and at USD800 the stock is down approximately 52% since its peak in November 2021.

The Nasdaq 100 Index dropped more than 8.5% in January, along with other risky assets. Its monthly trend momentum has turned negative for the first time since early in the pandemic, or about 2 years ago. The technical signal suggests for some to prepare for more volatility ahead. Pressure from uncertainty around the Fed's agenda, mixed earnings, and geopolitical tensions have pushed the negative-momentum reading to a level that hasn’t been seen for 13 years. On a more positive note, big tech earnings are strong, valuations have come down, and there are signs tighter financial conditions could help ease inflation, which could reduce investor worries.

Volatile markets, combined with elevated inflation levels in the last 12-months have pushed investors towards consumer staples. The P/E ratio trades at 21.4x forward earnings, above 1.5 standard deviations above the 5-year average. The sector is threatened however with lagging earnings growth and margin pressure, suggesting the large P/E premium may not be justified. Its average P/E ratio is closer to 19.5x. Staples have benefited from significant sector rotation, where investors have added to the defensives in order to protect their portfolio from volatile markets. Large companies with stable cash-flows have benefited.

Disney beat expectations in quarterly earnings and revenue. EPS came at USD1.06 vs USD0.63 expected. Disney+ total subscriptions increased nearly 12 million in the quarter to 129.8 million, up a significant 37% year-on-year. The service also saw average revenue per user grow to USD6.68 per month, from USD5.80 a year ago. Disney's parks business saw quarterly revenues total USD7.2 billion, about double the USD3.6 billion in last year's quarter, generating an operating profit of USD2.5 billion, vs a USD100 million loss last year. CEO reiterated guidance of 230-260 million Disney+ subscribers by 2024. DIS stock is up 7% in US pre-market, bringing it back to where it started the year.

Indices across the globe are in the green after a strong late Wednesday US session. The S&P500 managed to break out near-term multi-day ranges, after a spike in Apple (+1.85%) and Amazon (+2.20%).  Breadth is also encouraging and five main S&P Sectors out of 11 surged more than 1%. Though, looking ahead, there's a resistance level that could present more challenges. The 4520 level has in fact served as both resistance and support in the near past. Traders will be watching closely today's price action. Any move above this level, is likely to push the index higher. The big focus is on Tomorrow's CPI. A softer print could improve sentiment and boost momentum.