Stock Market Update

[BRIEFING.COM] The major indices trade flattish, holding up well amid ongoing uncertainty about the conflict in the Middle East after Israel said it would retaliate against Iran. The market was heading lower initially, but staged a nice recovery off early lows.

The upside moves coincided with some mega cap names either entering positive territory or extending early gains. Apple (AAPL 226.34, +0.14, +0.1%), Amazon.com (AMZN 186.00, +0.88, +0.5%), Eli Lilly (LLY 891.32, +6.84, +0.8%), NVIDIA (NVDA 118.93, +1.92, +1.6%), and Broadcom (AVGO 172.23, +4.79, +2.9%) are some of the influential winners in the space.

The bond and commodity markets have also exhibited turnaround action today. WTI crude oil futures dipped below $70.00/bbl and the 10-yr yield is up five basis points to 3.79%. Treasury yields moved higher after this morning's release of the ADP Employment Change Report for September.

Payroll growth was decent (143,000), wage inflation moderated, hiring was seen in both the goods and service-providing sectors, and across all geographic regions. The 10-yr yield was at 3.76% ahead of the data and the 2-yr yield, which sits at 3.63% now, was at 3.61% ahead of the report.

Outsized moves are mostly reserved for stocks with specific catalysts. Humana (HUM 230.72, -48.73, -17.5%) is the biggest loser in the S&P 500 after reporting that only 25% of its members are enrolled in 4-star plans and above, versus 94% in 2024.

NIKE (NKE 83.76, -5.36, -6.0%) is another influential loser after reporting fiscal Q1 results and withdrawing its FY25 guidance.

Reviewing today's economic data:

• Weekly MBA Mortgage Applications -1.3%; Prior 11.0%
• September ADP Employment Change 143K (Briefing.com consensus 120K); Prior was revised to 103K from 99K