Softer CPI Puts QQQ in Front as IBM Sinks

Softer CPI headlines set the morning backdrop, and the latest market snapshot showed QQQ leading the major ETFs. The sector split was not clean risk-on, though. Materials, financials, and utilities led, while health care, staples, and real estate lagged. IBM was the clear single-name break.

Market Snapshot

Based on the latest available market data as of 10:04 AM EDT.

SPY was last quoted at $750.46, up 0.18%. QQQ was stronger at $717.56, up 0.80%. DIA was last quoted at $525.53, up 0.21%, while IWM was at $294.32, up 0.29%.

Volume was still light across the broad ETFs in the latest snapshot. SPY, QQQ, and IWM were each running at 0.1x relative volume. DIA was higher at 0.7x.

What Is Moving

IBM was the main report mover. The latest available snapshot put IBM at $220.43, down 24.06%, with activity at 3.5x relative volume.

Barron's reported that IBM hit a rough patch after Q2 revenue missed estimates amid shifting enterprise spending.^[1] That made IBM the name to watch inside tech even as QQQ stayed positive in the latest market data.

News Driving the Tape

The macro headline was inflation. The June CPI headline showed -0.4% month over month versus a -0.1% estimate. Core CPI came in at 0.0% month over month versus a 0.2% estimate.

Retail data also crossed the tape. The Redbook Retail Sales Index was reported up 8.2% year over year for the week ended July 11, 2026, with a separate July 2026 versus July 2025 reading also at 8.2% year over year.

A separate macro headline put a 20% cargo ship fee idea into the discussion after National Economic Council Director Kevin Hassett was asked about it on Fox News.

Yahoo reported that a New York bill to pause new data centers was awaiting Gov. Kathy Hochul’s decision, with grid strain, energy costs, and the environment cited in the summary.^[2] That keeps mega-cap cloud and AI infrastructure names on watch.

Sector Lens

Materials led the sector board. XLB was last quoted at $51.18, up 1.19%.

Financials were right behind. XLF was last quoted at $56.71, up 1.17%. Utilities also had a bid, with XLU at $46.03, up 0.71%.

Tech was positive, but not the top sector. XLK was last quoted at $182.50, up 0.67%.

Health care was the weak spot. XLV was last quoted at $158.91, down 1.53%. Staples and real estate also lagged, with XLP down 0.46% and XLRE down 0.32%.

Watchlist

IBM stays first on the watchlist after the sharp drop and elevated activity. The key question is whether the move remains contained to IBM and related IT services names, or starts to weigh more broadly on tech sentiment.

QQQ is worth watching because it led the major ETFs despite the IBM move. A steady QQQ would keep the morning tone constructive.

XLF and XLB are the sector leaders to track. Financials and materials are carrying the cleanest strength in the latest snapshot.

XLV is the main weak sector. If health care stays heavy while the broad ETFs hold green, the market can still rotate. If weakness spreads, the tone changes.

MSFT, GOOGL, GOOG, META, and AMZN are on the radar after the New York data-center bill headline.

Unusual Movers

A separate screen showed 8 thin, illiquid, or noisy unusual movers. LGHL, NXTC, UBXG, and VMAR had July 14 snapshots, while several warrant symbols showed stale timestamps. Treat that list as noise, not the core tape.

Bottom Line

The morning tape was positive, but selective. Softer CPI headlines helped the backdrop, QQQ led the major ETFs, and materials plus financials sat at the top of the sector board. IBM was the clear damage point. For now, the broad market was holding up in the latest snapshot, but IBM and health care weakness are the pressure points to monitor into the rest of the session.

Sources

Market data reflects the latest available information at the time of publication. News sources are linked above. Conditions may change after publication.