It’s a choppy afternoon with indices now in red territory following this morning’s softer-than-expected wholesale inflation reading, and ASML’s (ASML) outlook results failed to lift semiconductor stocks.

The Mag Seven is the safe haven in Technology (XLK) today as investors move out of chip stocks. We have been talking about rotation into hyperscalers in the past. It is happening now, in bits, but it is happening.

Six sectors are in the green today led by Communication Services (XLC) and Consumer Discretionary (XLY), helped by gains in Alphabet (GOOG) and Amazon (AMZN). Energy (XLE) is the worst performing sector with crude oil futures lower. Technology (XLK) is the second worst performing sector driven by losses in semiconductor and memory names.

In other news, retail, cybersecurity and banks are among the best stocks in the market.

July Empire Manufacturing rose to +15.6, surpassing last month’s +5.7 and consensus of +9.2. Broad based strength came from new orders moving sharply, employment strengthening and prices paid easing.