Stock Market Update

[BRIEFING.COM] The stock market trades lower. The Dow Jones Industrial Average trades just below its prior close while the S&P 500 (-0.5%) and Nasdaq Composite (-0.7%) underperform, weighed down by mega cap and semiconductor-related names. 

NVIDIA (NVDA 144.88, -2.12, -1.4%) is a standout from the spaces in front of its earnings report this afternoon. Other mega cap stocks have an outsized impact on major indices, leading the Vanguard Mega Cap Growth ETF (MGK) to trade 0.8% lower.

Retailers are also weak today after disappointing guidance from Target (TGT 121.58, -33.30, -21.5%). This loss has clipped the S&P 500 consumer staples sector (-0.5%).

The consumer discretionary sector is the worst performer today, weighed down by its mega cap constituents. The information technology (-0.9%) and communication services (-0.6%) sectors are also underperforming due to losses large-cap constituents. 

Treasury yields have pulled back from earlier highs, but that hasn't translated into support for equities. The 10-yr yield moved to 4.40% from 4.43%. This price action was related to news that Ukraine had fired UK-made missiles into Russia, stirring some safe-haven interest.

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index, which increased 1.7% with purchase applications increasing 2% and refinance applications rising 2%
• Weekly EIA crude oil inventories showed a build of 545,000 barrels