Major indices are near the lows of the session as tensions with China heat up.

• US PLANS WIDER CHINA TECH SANCTIONS WITH SUBSIDIARY CRACKDOWN
• THE RULE WOULD COVER SUBSIDIARIES OF CHINESE FIRMS UNDER US CURBS.

Magnificent seven names are moving lower, with Nvidia (NVDA) lagging the group after President Trump claimed that China had totally violated an agreement with the US.

Consumer Staples (XLP) is the performing sector following a positive reaction to Costco (COST) earnings. Technology (XKL) is the worst performing sector driven by losses from semiconductors.

The ten-year treasury yield (TNX) is continuing lower and currently sits around 4.4%.

Economic Data

Chicago PMI fell to 40.5 in May from 44.6 in April and below the forecasted improvement to 45. This was primarily due to a fall in new orders, production, and order backlogs.

Final numbers for May’s Consumer Sentiment report were revised higher to 52.2 from a preliminary reading of 50.8 and exactly at April’s reading.

Notable Revisions:

• Consumer Expectations Index revised to 47.9 from 46.5 (47.3 in April)
• Current Conditions Gauge revised to 58.9 from 57.6 (59.8 in April)
• 1 Year Inflation Expectations revised to 6.6% from 7.3% (6.5% in April)
• Long run Inflation Expectations revised to 4.2% from 4.6% (4.4% in April)

Have a great weekend!