Stock Market Update

[BRIEFING.COM] The Nasdaq Composite reached a record close, settling 0.8% higher than yesterday. The S&P 500 rose 0.2%, or about ten points. Mega caps and chipmakers contributed to the upside moves. The PHLX Semiconductor Index (SOX) closed 2.3% higher and the Vanguard Mega Cap Growth ETF (MGK) settled 0.9% higher. 

Alphabet (GOOG 171.14, +2.80, +1.7%) was an influential winner ahead of its earnings report after today's close. 

Market internals reflect an underlying negative bias in today's trade. Decliners led advancers by a 2-to-1 margin at the NYSE and by a 4-to-3 margin at the Nasdaq. Also, the Dow Jones Industrial Average (-0.4%) and Russell 2000 (-0.3%) closed lower.

The price action in Treasuries kept buying in check in the equity market. Yields moved higher following a strong Consumer Confidence report for October, but ultimately settled little changed from yesterday after a strong $44 billion 7-yr note sale that made for a welcome respite from recent all-around weakness in auction demand and intraday trade. The 10-yr yield settled unchanged at 4.27% and the 2-yr yield declined two basis points to 4.12%.

Market participants were also digesting a mixed slate of earnings news. D.R. Horton (DHI 167.32, -13.06, -7.2%), Ford (F 10.41, -0.96, -8.4%), and Pfizer (PFE 28.46, -0.40, -1.4%) are some of the names that closed lower after reporting results, along with Dow component McDonald's (MCD 295.00, -1.79, -0.6%),

V.F. Corp (VFC 21.63, +4.60, +27.0%) and Royal Caribbean (RCL 210.10, +6.58, +3.2%) were some of the earnings-related winners today.

• Nasdaq Composite: +24.7% YTD
• S&P 500: +22.3% YTD
• Dow Jones Industrial Average: +12.1% YTD
• S&P Midcap 400: +13.0% YTD
• Russell 2000: +10.4% YTD

Reviewing today's economic data:

• August FHFA Housing Price Index 0.3%; Prior was revised to 0.2% from 0.1%
• August S&P Case-Shiller Home Price Index 5.2% (Briefing.com consensus 5.1%); Prior 5.9%
• October Consumer Confidence 108.7 (Briefing.com consensus 99.0); Prior was revised to 99.2 from 98.7
  • The key takeaway from the report is that the increase in confidence in October was broad-based across all age groups and most income groups, and featured a substantially more optimistic view about future business conditions than the prior month. That sets up to be a supportive component for consumer spending.
• September JOLTS - Job Openings 7.443 mln; Prior was revised to 7.861 mln from 8.040 mln
• September Adv. Intl. Trade in Goods -$108.2 bln; Prior was revised to -$94.2 bln from -$94.3 bln
• September Adv. Retail Inventories 0.8%; Prior was revised to 0.7% from 0.5%
• September Adv. Wholesale Inventories -0.1%; Prior 0.2%

Wednesday's economic calendar features:

• 7:00 ET: Weekly MBA Mortgage Index (prior -6.7%
• 8:15 ET: October ADP Employment Change (Briefing.com consensus 105,000; prior 143,000)
• 8:30 ET: Advance Q3 GDP (Briefing.com consensus 3.0%; prior 3.0%) and advance Q3 GDP Chain Deflator (Briefing.com consensus 2.3%; prior 2.5%)
• 10:00 ET: September Pending Home Sales (Briefing.com consensus 2.5%; prior 0.6%)
• 10:30 ET: Weekly crude oil inventories (prior +5.47 mln)