Stock Market Update

[BRIEFING.COM] Today's trade features a positive bias, but moves have been limited due to a lack of conviction in front of the holiday tomorrow. The market is closed Wednesday in observance of Juneteenth. The lack of conviction also relates to the acknowledgement that major indices sit at or near all-time highs. 

Still, advancers have a nearly 2-to-1 lead over decliners at the NYSE and an 11-to-10 lead at the Nasdaq. The market-cap weighted S&P 500 sports a 0.1% gain and the equal-weighted S&P 500 shows a 0.2% gain. 

Mega cap stocks, which had an outsized impact on index performance so far this month, are lagging the broader market and acting as a limiting factor. The "rest" of the market, which has lagged compared to some heavily-weighted names, is performing well today.

The equal-weighted S&P 500 is down 0.3% this month versus a 3.9% gain in the market-cap weighted index. 

Shares of Apple (AAPL 214.13, -2.54, -1.2%), which were already showing a loss, moved lower after news that the company suspended work on next generation high end headsets, according to The Information. Other mega caps also extended early losses with no specific catalysts. Amazon.com (AMZN 182.42, -1.67, -0.9%), Meta Platforms (META 497.03, -9.45, -1.9%), and Broadcom (AVGO 1815.34, -13.00, -0.7%) are among the influential laggards in that respect.

Lennar (LEN 148.91, -7.60, -5.0%) is another standout laggard after reportedly disappointing with an outlook for a sequential decline in orders. Other homebuilders are underperforming, leading the SPDR S&P Homebuilder ETF (XHB) to trade down 0.1%. KB Home (KBH 68.59, -0.92, -1.2%) sports a solid decline in front of its earnings report this afternoon.

The 2-yr note yield is down six basis points to 4.70% and the 10-yr note yield is down seven basis points to 4.21%. This price action follows a batch of mixed economic data that included weaker-than-expected retail sales, stronger-than-expected industrial production, and in-line business inventories.

Reviewing today's economic data:

• May Retail Sales 0.1% (Briefing.com consensus 0.3%); Prior was revised to -0.2% from 0.0%; May Retail Sales ex-auto -0.1% (Briefing.com consensus 0.2%); Prior was revised to -0.1% from 0.2%
  • The key takeaway from the report is that it reflects some slowing in consumer spending on goods that will be accounted for in weaker Q2 real GDP forecasts.
• May Industrial Production 0.9% (Briefing.com consensus 0.4%); Prior 0.0%; May Capacity Utilization 78.7% (Briefing.com consensus 78.5%); Prior was revised to 78.2% from 78.4%
  • The key takeaway from the report was that gains were widespread across the major market groups, with particular strength in manufacturing output that should mitigate hard-landing concerns.
• April Business Inventories 0.3% (Briefing.com consensus 0.3%); Prior -0.1%