The major indices are all in the slightly red as investors have taken a more defensive stance, at least for today.  This is actually the calm before some big events this week.

• Hearings
• Big Tech earnings
• Federal Reserve FOMC

Utilities and Real Estate leading.  The big momentum and growth names are taking a breather.  FAANG is in the red, as is Tesla (TSLA), which was downgraded to Underperform at Bernstein based on valuation.

Economic News

The Conference Board's Consumer Confidence Index declined in July to 92.6 falling short of the consensus of 95.0 from June's 98.3, which was revised higher from 98.1. The rise in Covid-19 cases, and the rollbacks and delays in reopening the economy and states weighed on consumers’ minds, and as such, they are less optimistic than before.  In addition, consumers remain restrained and somewhat concerned about their financial prospects, "which is a negative portent for consumer spending.” 

• Present Situation Index rose to 94.2 from 86.7.
• The Expectations Index declined to 91.5 from 106.1.

On the housing front, the Case-Shiller U.S. National Home Index rose 4.5% annually in May.  The 10-city composite increased 3.1%, year over year, but was down from 3.3% in April.  The 20-composite rose 3.7% from the prior year, but it declined from April’s 3.9%. Prices rose in 19 of the 20 cities.  Housing prices continue to rise, and supply remains tight.