LIVE MARKETS-US stocks find some calm

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US STOCKS FIND SOME CALM

U.S. stocks are staging a modest recovery early on Wednesday after the sharpest equities selloff in three months, as investors digested President Donald Trump's speech at Davos, including a fresh push to acquire Greenland.

Regarding Trump's speech, Brian Jacobsen, chief economic strategist at Annex Wealth Management in Brookfield, WI, said:

"It wasn’t so much what President Trump said that mattered as what he didn’t say. He didn’t reiterate his tariff threat against Europe. He didn’t say the government would use force to get Greenland. He didn’t say he’d cap credit card rates, instead asking Congress to do it. It felt like a dialing down of the substance even if the style was still pure Trump."

With the early action so far, the Nasdaq Composite .IXIC is mounting a bounce off its 100-day moving average (DMA), while the S&P 500 .SPX is forging back over its 50-DMA.

Nearly all S&P 500 sectors are higher with Energy .SPNY, up more than 2%, posting the biggest rise. Defensive Staples .SPLRCS is the sole loser.

Regional banks .KRX, chips .SOX, transports .DJT, and small caps .RUT are among outperformers.

In fact, with the small-cap Russell 2000's above-market rise so far on Wednesday, it's on track to outperform the SPX for a 13th straight day. The last 13-day streak of small-cap outperformance ended in June 2008.

Meanwhile, after jumping around 16 basis points over the past three trading days, the U.S. 10-year Treasury yield US10YT=RR is edging lower, and the CBOE Market Volatility Index .VIX is calming down. After ending above 20.00 on Tuesday for the first time since November 24, the VIX is quickly deflating back below 18.00.

Here is a snapshot of where markets stood around 10:11 a.m. ET:

(Terence Gabriel)

EARLIER ON LIVE MARKETS:

NASDAQ COMPOSITE: NOW THE 100-DMA TAKES ITS TURN CLICK HERE

RBC COOLS ON LUXURY: 'REVENUE GROWTH IS VANITY' CLICK HERE

COULD EUROPE RUN OUT OF GAS? CLICK HERE

STOXX DIPS BUT SELLOFF SLOWS, EYES TURN TO TRUMP IN DAVOS CLICK HERE

EUROPE BEFORE THE BELL: FUTURES STEADY, SELLOFF SET TO EASE CLICK HERE

MARKETS CLING TO HOPES OF A DAVOS DE-ESCALATION CLICK HERE