The markets, while still up, have given up some ground. Secretary of State Pompeo released a statement that the U.S. will impose visa restrictions for employees of some Chinese companies.  In addition, headlines that China has summoned its U.S. ambassador to protest the recently signed Hong Autonomy Act, passed by the U.S. Congress and signed by President Trump, added to the profit taking.

Philadelphia Fed President Patrick Harker revised his economic outlook downward and warned that big job gains seen in May and June should not be expected for July.  Goldman (GS) is also off the highs after its earnings conference call. The company stated it is preparing for prolonged economic challenges despite seeing early indications of economic improvement in the U.S.

With the exception of Apple (AAPL), FAANG is down.  Even that electric darling Tesla (TSLA) is taking breather.  Nonetheless, all the S&P 500 sectors are up as rotation continues with Industrials the best performer in today's session.

Breadth continues to remain positive with advancers outpacing decliners.  

The housing market is rocking held back only by the lack of supply. The unadjusted Purchase Index increased 5% from the previous week and was 16 percent higher than the same week one year ago.  

Joe Kan, MBA's Associate Vice President of Economic and Industry Forecasting stated, "Mortgage rates continued their downward trend, with the 30-year fixed rate falling 7 basis points to 3.19 percent - another record low in MBA's survey and 63 basis points lower than the recent high in late March. The drop in rates led to a jump in refinance activity to the highest level in a month, with refinance loan balances also climbing to a high last seen in March." He added, "Purchase applications fell over the week but remained 15 percent higher than a year ago - the eighth consecutive week of year-over-year increases. Purchase activity remains relatively strong, despite the continued economic uncertainty and high unemployment caused by the ongoing pandemic."