Stock Market Update

[BRIEFING.COM] The stock market opened lower after a solid run in the third quarter that led the S&P 500 to a record close yesterday. The index is down 0.9%, trading at initial lows due to some consolidation activity. 

The downside bias also stems from fears about a potential escalation in the Middle East after Israel launched a ground invasion of Lebanon and following reports suggesting Iran is preparing ballistic missile attack against Israel

Geopolitical angst has driven yields down in a safe-haven trade and oil prices higher, reflecting worries about a broader conflict in the region. The 10-yr yield is down ten basis points to 3.70% and WTI crude oil futures are up 3.1% to $70.32/bbl.

Market participants are also digesting some economic releases. Earlier, the S&P Global US Manufacturing PMI fell to 47.3 in the final September reading from 47.9 in the preliminary reading. 

The ISM Manufacturing Index was unchanged at 47.2% in September (Briefing.com consensus 47.7%). JOLTS - Job Openings totaled 8.04 million in August, up from 7.711 million in July (revised from 7.673 million). 

Construction spending declined 0.1% in August (Briefing.com consensus +0.1%) following a 0.5% decline in July (revised from 0.3%).