Equities slipped on Wednesday following a mad dash for the exits on Tuesday. The S&P 500 fell about 0.25% at the low of the day on fears of slowing economic activity and an earnings recession that could begin as soon as the current quarter. While several reports have come in better than expected the strength is isolated and the signs of economic headwinds are growing. If this trend continues it could lead to a significant revision to the 2nd half outlook that drives the market even lower and that is not the only risk. The PCE price index is expected to come in hot and increase the odds not only of aggressive FOMC action but a major recession as well.

In regards to stocks, the defensive Consumer Staples stock General Mills was among the market's leaders on Wednesday. The stock represents not only a value to investors but a high yield that is backed upped by results. General Mills' 2nd quarter earnings were better than expected and came with an increase in guidance that we think will be echoed across the sector.