"The United States market is pricing in three rate hikes this year, and there was some relief that the latest inflation figure had not jumped ahead more than expected.
"Some pressure came off the technology sector, and for the first time in a little while you saw positive green numbers in the US markets. Some of the resetting may have already occurred," Solly said.
Inflation in the US still increased at its fastest pace in nearly 40 years last month, as the consumer price index reached 5.5 per cent in December.
The index increased 0.5 per cent from the previous month and 7 per cent from a year ago.
At home, Serko rose 28c or 4.75 per cent to $6.18 after falling 4.99 per cent the day before and reaching a 10-month low.
Solly said Serko has been penalised for being a technology stock exposed to travel. "But reports that the Northern Hemisphere may be through the peak of the Omicron wave boosted Serko which does a lot of business in Europe and the US."
SkyCity Entertainment was up 4c to $2.95 as its Australian rival casino operator Crown Resorts received a revised takeover offer worth $A8.87 billion ($NZ9.42b).
Solly said this may cause people to take another look at SkyCity and the opportunities that could arise through the takeover.
Global private equity firm Blackstone Inc increased its non-binding offer for Australia's biggest gaming group from $A12.50 to $A13.10 ($NZ13.91) a share, and was invited to complete due diligence.
The Crown board said if Blackstone makes a binding offer, then it will recommend that shareholders vote in favour of the scheme of arrangement in the absence of a superior proposal.
The light trading again resulted in few major movements – activity will pick up next week as institutional investors return to work and company announcements begin flowing.
"We are coming into our latest reporting season (starting mid-February) and maybe we will get some confessions over the next week or so," said Solly.
The Warehouse Group, down 7c or 1.9 per cent to $3.61, has already done that, warning its sales and earnings will be down for the first half of the 2022 financial year because of higher costs and lower margins.
One broker has cut The Warehouse's target price from $4.35 to $3.85, and trimmed its half-year profit by 28 per cent, from $125.9m to $90.7m.
The energy stocks had a better day. Meridian rose 11c or 2.36 per cent to $4.77; Contact was up 10c to $7.90; Mercury gained 7c to $6.11; Vector was up 5c to $4.05; and Trustpower also increased 5c to $7.30.
Mainfreight gained $1.05 to $91.90; Freightways was up 8c to $13; and Michael Hill International bounced back, rising 5c or 3.38 per cent to $1.53. Fellow retailer Kathmandu Holdings was down 3c or 2.07 per cent to $1.42.
Accordant Group rose 9c or 4.92 per cent to $1.92; Move Logistics increased 4c or 2.41 to $1.70; and Marlin Global fund collected 4c or 2.78 per cent to $1.48.
Health companies Green Cross Health picked up 3c or 2.52 per cent to $1.22; Third Age Health rose 10c or 3.45 per cent to $3; and Radius Residential Care was up 3c or 6.82 per cent to 47c.
Chorus was down 8.5c to $6.935; EBOS Group declined 27c to $39.82; a2 Milk decreased 8c to $5.76; Scales Corporation shed 11c or 2.06 per cent to $5.22; Sky Network Television fell 8c or 3.27 per cent to $2.37; NZME lost 3c or 2.2.27 per cent to $1.29; and Rakon was down 9c or 4.21 per cent to $2.05.
Among other decliners, Vista Group was down 6c or 2.69 per cent to $2.17; Investore shed 4c or 2.13 per cent to $1.84; Gentrack lost 4c or 2 per cent to $1.96; Smartpay Holdings decreased 2.5c or 3.29 per cent to 73.5c; and hospitality group Savor fell 2.5c or 5 per cent to 47.5c
