The market is rejoicing over the fact that consumers are still spending but they have been forced to trade down on brands and quality.

Even though a consumer staple is setting the tone (WMT) in today’s session, 12 of the top 15 advancers are in the consumer discretionary sector (XLY).

On the economic front, capacity utilization continues to move higher. It was 80.3% for the month of July, above consensus of 80.2%

Retail continues to be the center of attention this week with Target (TGT) and Lowes (LOW) reporting tomorrow.

Inflation is taking a toll even in wealthier households and we might be in recession which would mean the Fed is closer to declaring victory.