All major equity indices finished lower yesterday, and although it was an orderly session, investors have grown accustomed to it. It may soon become antsy.

Market breadth was compelling, with many more decliners than advancers; however, volume on the NASDAQ underscores the unbridled excitement in the AI trade, which is widening.

The S&P 500 reflected growing angst, as defensive sectors moved higher.

A closer look at extended factors reveals a risk-adverse nature of the session, with large-cap revenue and low volatility in the green (slightly).

Today’s Session

Futures have been under slight pressure all morning.  Economic data released this morning came in stronger than expected.

Initial Jobless Claims plunged to 218,000, and the consensus was 235,000.

Durable goods also came in above consensus. 

• Headline 2.9% consensus -0.5%
• Core +0.4% consensus -0.1%
• Nondefense +0.6%

GDP

The third revision of the second quarter GDP soared to 3.8%, against the consensus of 3.3%.

We need to rethink GDP as the ultimate measure of a nation's economic health. This is a doozy.

Real final sales to private domestic purchasers climbed to 2.9%, after the initial read of 1.2%.

The consolidation phase has begun.