Major indices are moving off of their morning highs and into the red.

The move lower came after reports circulated that Trump pushed for a 15% - 20% minimum tariff on the EU in negotiations. In addition, he rejected proposals to reduce the 25% sectoral tariffs on EU cars.

Four sectors are in the green with Utilities (XLU) leading the way. Meanwhile, Energy (XLE) is lagging after Schlumberger Limited (SLB) reported earnings that showed lower YoY profits due to weaker international drilling activity.

Utilities are getting a boost as Trump is expected to roll out the administration’s AI Action Plan by the end of the month that is expected to promote innovation, reducing regulatory burdens, overhauling permitting, and expand sources of power for data centers. Notably, he may tease parts of the plan during his remarks next week at an AI summit on July 23^rd.

Economic Data

The preliminary reading for July of Michigan Consumer Sentiment Report showed an increase to 61.8 from 60.7 in June and above estimates of 61.5. This is the highest reading since February as consumers increasingly reject tariff fear mongering.

Notable Changes:

• Current Conditions Index rose to 66.8 from 64.8
• Expectations Gauge increased to 58.6 from 58.1
• Year ahead inflation Expectations fell to 4.4% from 5%
• Long-run Inflation Expectations declined to 3.6% from 4%