Major indices are split with S&P 500 and Nasdaq, both tech-heavy indexes, edging into the red, while the Dow Jones and Russell 2000 are holding marginally in the green.

Communication Services (XLC) is in the lead, benefiting from dip buying in Alphabet (GOOG/L) following last week’s earnings reaction. The runner up is the Consumer Staples (XLP) sector, which is not only getting a boost from discount stores, but also shares of Tyson Foods (TSN). The stock is higher after the US began the phased reopening of cattle imports from Mexico and imposed new tariffs on Canada.

Technology (XLK) is the laggard with semiconductors contributing to the decline after reports that China is making homegrown deep ultraviolet lithography machines, a key component of chip production, and will deliver them to domestic chipmakers this year.

On the other hand, software (IGV) is bucking the broader move in Technology today.

Energy (XLE) is the second worst performing sector as oil prices fall on reports of peace talk progress with Iran.

In AI news, DeepSeek has reportedly paused its funding round after alleged comments from the CEO that indicate Chinese models, like DeepSeek, have a gap in funding and resources compared to the USA. Additionally, he allegedly indicated that DeepSeek cannot afford to train its largest models and thus would not consider competing with the US at scale.

Quantum Update

There were several notable reports out of the quantum space today. Rigetti (RGTI) and Hewlett Packard Enterprise Company (HPE) are partnering to build a quantum-classical supercomputer. The project is expected to be fully operational next year and will further quantum commercialization and utilization.

Furthermore, D-Wave (QBTS) and AT&T (T) made a deal to deploy D-Wave's quantum computing technology to address complex optimization challenges across AT&T's network operations.

In other news, Anduril is in talks about a new funding round that may value the company at approximately $100 billion.

Economic Data

New orders for durable goods rose 0.3% M/M in June, rebounding from a 4% decline in May, but came in below estimates of a 1.6% increase.

Notable increases in June came from computers and electronic products, nondefense aircraft and parts, primary metals, and capital goods, while defense aircraft and parts, motor vehicles and parts, fabricated metal products, and machinery posted declines.

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