The markets have been meandering for most of the session and are off the lows from the open.  Utilities are having another good day and are the top performing sector in this session.  With all the talk of Fed cutting interest rates, investors have been flocking into Utility stocks, which pay robust dividends that exceed Treasury rates. 

Economic Data

The University of Michigan Consumer Sentiment preliminary read for June declined to 97.9 from May’s final read of 100.0.  The decrease was due to concerns over tariffs on goods from China and reduced the Consumer Expectations Index.  

• The Current Economic Conditions Index rose to 112.5 from 110.0
• The Index of Consumer Expectations is down to 88.6 from 93.5
• The year-ahead inflation expectation declined to 2.6% from 2.9% in May

Business inventories in April increased 0.5% and were flat in March. Inventory growth year over year is up 5.3%, while sales growth is up 2.8%.  This spread should help keep prices increases at bay. 

• Business sales declined 0.2% after growing 1.3% in March
• Retailers' inventories rose 0.5%, after declining 0.3% in March, due to an 0.8% rise in motor vehicle and parts inventories
• Inventories-to-sales ratio increased to 1.39 in April from 1.37 in March and 1.36 from the prior year

The IPO crazy continued today with Chewy (CHWY), the online retailer of pet food and related products.  The stock is currently up 60% on the day, although off its high.  It is an impressive start, but like a lot of these companies losing money, I see the stock pulling back soon.