Balancing 'risks' - was essentially a theme from Fed Chairman Powell, and that strikes a similar chord for him. At least for once we heard actual financial questions (not the most erudite) rather than obvious political inferences.

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With the continued pressure on Housing, it's pretty evident that technology, of course Healthcare, and also Energy remain sector focal points. 'Tech' remains foremost, but that's not a change. All 11 S&P sectors are projected to deliver positive growth this year, and that matters (also potholes along that path).

Capital market stocks probably have a role here, like Goldman Sachs perhaps but less so that major banks. Indirectly this can help broaden the market and I suspect bring-forth a couple more deals.

If JP Morgan (JPM), Morgan Stanley (MS), and so on can rally, that would have the Index to hold together. The old adage was Banks, Oil and big tech, and we have two of those particularity consistently this year. Bit tech has a huge run so clearly deserves a rest, whether we get it or not. It's broadening we're interested in.

Market X-ray: 

Fortunately, Tuesday was less exciting that watching paint dry, in the way stocks meandered within relatively narrow ranges through the day. I say fortunately, because I had to revisit thoughts of the woes of 3 years ago, when I was hospitalized for weeks, and barely survived Covid (many so sadly did not fare so well in those days). While more than an allergy or cold when it's contracted these days, it's nevertheless uncomfortable and with effects.

The Fed Chairman didn't really 'calibrate' his comments to a planned path, but it will do as far as recognizing the increasing burden consumers are facing, at the same time there was too much emphasis on ideas of a 2% inflation pace seriously helping 'Housing' in America. I think you need insurance reform as a vast majority of homes carry mortgages as lenders force adequate coverage.

Bottom-line: 

Market behavior did not respond much to Chairman Powell or the initial NATO gathering, with more tomorrow and the President at least so far still scheduled to do an open press conference on Thursday.

Market chop in a narrow market 'can' be viewed as 'distribution' of course, but in this pattern action there's more sentiment toward 'portfolio re-balancing' vs. simply exiting. We'll see, even if this July 'broadening' isn't as robust as I'd like to see, and while analysts debate whether the Feds stalling making decisions.

More By This Author:

Market Briefing For Tuesday July 9
Market Briefing For Monday July 8
Market Briefing For Thursday July 4