All Indices are pulling back in response to decreasing rate cut expectations, this morning’s economic data, and a rare miss from Walmart (WMT).

Separately, Fed Chair Powell has been urged by the Department of Justice (DOJ) to remove Fed Governor Lisa Cook (a voting member) from the committee amid allegations of mortgage fraud.

Only three sectors are in the green, with Energy (XLE) leading the way up.

Consumer Staples (XLP) is the laggard after Walmart (WMT) posted its first EPS miss since May 2022, and guided FY26 earnings per share (EPS) below estimates.

The Ten-Year Yield (TNX) is up 4.9 basis points and once again testing its 50 MA, ahead of tomorrow’s Powell comments.

Economic Data

The S&P Composite PMI edged up to 55.4 in August from 55.1 in July, marking the 31^st consecutive month of growth. Manufacturing PMI rose to 53.3 from 49.8 and above estimates of 49.5; however, Services PMI fell to 55.4 from 55.7 surpassing consensus of 54.2.

Existing home sales rose 2% MoM in July to 4.01M from 3.93M in June and above the estimated decline to 3.92M.

The Conference Board Leading Index fell -0.1% in July, in line with forecasts, and decelerated from the -0.3% decline in June.

We saw strong demand in the 30-year TIPS auction that saw a real yield of 2.65%, the highest in nearly 24 years.