Another disappointing data point. Consumer sentiment in July declined to 90.0 from 93.5 in June according to the University of Michigan. Politics and the economy are a concern for the consumer. Although the stock market has come back since the Brexit passed, higher income households are still worried about the impact of the U.K. leaving. Consumers’ sentiment of the current economy declined 1.6 points to 109.0, but the expectations gauge dipped 5.6 points to 77.8.

Also on the economic front, Chicago PMI for July fell to 55.8 compared to 56.8 in June due to a decline in New Orders. On a bright spot, the Employment component had a strong increase and rose 0.6% for the 3 months ending in June.  And while overall results for July were lower, the 3 month average rose to 54 from 52.2 in the second quarter, the highest reading since February 2015.

“Demand and output softened somewhat in July following a solid showing in June but still outperformed the very weak results seen earlier in the year. On the upside, it was the first time since January 2015 that all five Barometer components were above 50. Looking at the three-month average, the Chicago Business Barometer so far suggests economic activity running at a healthier pace in Q3,” said Lorena Castellanos, senior economist at MNI Indicators. “Another positive came from the Employment Indicator. Although it’s still relatively weak, should July’s increase hold then it could be read as a tentative sign of growing business confidence about economic growth ahead,” she added.

You would think that the data of late and recent GDP numbers would have the Fed running for cover. But John Williams, San Francisco Fed President, stated that central bank is likely to increase rates going forward rather than to cut them, albeit gradually.  Let’s see what the other Fed speakers have to say.

Stocks have been in and out of positive territory today and the S&P500 reached an intraday high before retreating.  Nasdaq has been the best performer this week and is up about 1% this week, while the Dow and S&P are relatively flat.

Oil was up and is now lower as the dollar weakened. In addition, US oil rig count increased for the 5^th straight week, up by 3 to 374.  And while is oil higher on the day, it is down about 14% this month.