Early gains evaporated, as major averages are now in red territory. This week’s earnings reports have been largely positive, but attention is now shifting to what comes next in terms of the outlook. Here the picture is less clear. 

Buyers keep flocking to traditional safe havens, Utilities and Real Estate. Energy and Materials are the weakest sectors.

The Michigan Consumer Sentiment Report saw one year inflation expectations increase to 4.8% from 4.2%. We are watching to see if folks skip big purchase items like houses, vehicles, and refrigerators. 

This feels like a classic Friday session in the middle of the summer with weak breadth and low volatility.