It is a choppy session as major indices consolidate near their flat lines ahead of tomorrow’s CPI.

There are not many new highs, but breadth shows strong rotations with many stocks breaking above their 20, 50, and 200 moving averages.

Six sectors are higher with Energy (XLE) leading as oil creeps higher, though it remains well off its overnight highs after reports that Pakistan’s defense minister announced the U.S. and Iran are close to “some sort of an arrangement.” Industrials (XLI) is another strong performing sector driven by gains in its electrical product components.

Fed Update

During an interview Fed voting member Hammack said one rate hike may not be enough, noting she still doesn’t see a problem with the job market while she dismissed the cool June CPI print.

Economic Data

NFIB Small Business Optimism Index jumped 2.4 points to 99.8 in July, reaching its highest level since August 2025. In addition, over the next three months a net 20% of owners plan to create new jobs.

July Existing Home Sales fell for the second month declining to -1.7% from June, missing consensus of -1%. June was revised upwards to -1.4% decline from -2.4%.

Annually, sales were up in the Midwest and the West, but unchanged in the South and the Northeast.