Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+1.0%) have traded higher so far while the Russell 2000 (-0.1%) and Dow Jones Industrial Average (-0.4%) trade below Friday's closing levels.

Outsized gains in some mega cap names with no specific news to account for the buying interest have propelled the S&P 500 and Nasdaq Composite higher, along with strength in the semiconductor space. The Vanguard Mega Cap Growth ETF (MGK) shows a 1.0% gain and the PHLX Semiconductor Index (SOX) trades 3.1% higher. 

Chipmakers are responding to better-than-feared export restrictions on semiconductors and semiconductor equipment to China. Other headlines from the space include news that Intel (INTC 24.96, +0.92, +3.8%) CEO Pat Gelsinger is out and the company will be led by interim co-CEOs until a new CEO is hired. 

INTC is among the top performing names in the S&P 500 information technology sector (+1.2%). The biggest gainer in the sector is Super Micro Computer (SMCI 42.37, +9.71, +29.8%), which is surging after announcing a review by an independent committee found no evidence of misconduct on the part of management. 

The underlying vibe in the market is negative, though. Decliners lead advancers by a 3-to-2 margin at the NYSE and by an 11-to-10 margin at the Nasdaq. The equal-weighted S&P 500 sports a 0.2% decline.

The 10-yr yield hit 4.24% earlier, but sits at 4.18% now, which is unchanged from Friday's settlement.

Separately, the dollar is building up strength today, leading the US Dollar Index to move 0.7% higher to 106.51. This move relates to President-elect Trump saying he would impose 100% tariffs on countries moving away from the dollar as the world's reserve currency.

Reviewing today's economic data:

• November S&P Global US Manufacturing PMI - Final 49.7; Prior 48.5
• November ISM Manufacturing Index 48.4% (Briefing.com consensus 47.6%); Prior 46.5%
  • The key takeaway from the report is that manufacturing sector activity overall continues to be weak, but showed a green shoot with the new orders index returning to expansion territory after seven straight months of contraction.
• October Construction Spending 0.4% (Briefing.com consensus 0.1%); Prior 0.1%
  • The key takeaway from the report is that residential construction activity rebounded nicely, led by single family construction.