Markets erased early gains after investors digested the latest inflation data and the Fed pullback on interest rates. PPI ready was mixed while prices fell in May to -0.2%, year-to-year is up 2.2%, and still above the average annual pace of the past year.

Core PPI is up 3.2% y/y, still near its highest reading since April.

The only two winning sectors of today are Real Estate (XLRE) and Technology (XLK), adding to their gains from yesterday. Technology is also reacting positively in sympathy with Broadcom Inc (AVGO) beating earnings. The big losers include Industrials (XLI), Energy (XLE), and Communication Services (XLC).

Bond Market

The 30-year bond auction is sparking some volatility on yields, with the 10-year yield near the lows of the session.

It was a good 30-year bond auction here as yield goes off to 4.03% vs. 4.418% when issued, strong indirect bid at 68%.

Stocks are stabilizing after this morning's pullback and are near the flat line.