Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.2%), DJIA (-0.3%), and Nasdaq Composite (-0.1%) all sport modest losses for the day.

Sector strength has decreased, with only the consumer discretionary (+0.5%), communication services (+0.3%), and materials (+0.1%) sectors maintaining positions in positive territory. 

Breadth figures are roughly even on both the NYSE and Nasdaq, reflecting a shift from yesterday's broad-based buying action.

The ISM Services PMI decreased to 50.1% in July (Briefing.com consensus 51.5%) from 50.8% in June. The dividing line between expansion and contraction is 50.0%, so the July reading reflects services sector activity teetering on the brink of a contraction.

The key takeaway from the report is that it reflects a slowdown in growth for the country's largest sector, accompanied by a faster contraction in employment and a faster increase in prices. It is a combination that will provoke stagflation chatter