Stock Market Update

[BRIEFING.COM] The stock market is moving with the ebb and flow of NVIDIA (NVDA 133.00, -2.59, -1.9%). Shares had been up as much as 3.8% earlier, but trade down 1.9% now. This deterioration coincided with the major indices declining, reaching session lows.

The S&P 500, which briefly traded above 5,500 at its high, and the Nasdaq Composite each logged new intraday all-time highs in early action. The S&P 500 trades down 0.2% now, though, and the Nasdaq Composite sports a 0.6% loss.

Many stocks participated in the pullback. Market breadth was positive shortly after the open, but decliners now have a roughly 4-to-3 lead over advancers at both the NYSE and at the Nasdaq. 

The heavily-weighted S&P 500 information technology sector (-1.4%) is the worst performer today by a decent margin due to activity in shares of NVDA, Apple (AAPL 209.39, -4.89, -2.3%), Microsoft (MSFT 444.23, -2.14, -0.5%), and Broadcom (AVGO 1735.48, -66.22, -3.7%).

The rate-sensitive real estate sector is the next worst performer, down 0.2%, clipped by a jump in Treasury yields. The 10-yr note yield is up four basis points to 4.26% and the 2-yr note yield is up three basis points to 4.73%.

Reviewing today's economic data: 

• Weekly initial jobless claims totaled 238,000 (Briefing.com consensus 237,000) following a revised count of 243,000 last week (from 242,000). Continuing claims came in at 1.828 million following last week's revised count of 1.813 million (from 1.820 million).
  • The key takeaway from the report is that jobless claims have moved up a notch from lower levels to connote some softening in the labor market.
• Housing starts totaled 1.277 million in May (Briefing.com consensus 1.385 million) following a revised count of 1.352 million in April (from 1.360 million). Building permits totaled 1.386 million in May (Briefing.com consensus 1.455 million) following a count of 1.440 million in April. 
  • The key takeaway from the report is that it suggests the housing market will remain subject to inventory constraints that will create affordability pressures, barring a stronger pickup in listings of existing homes for sale that has been tough to come by with mortgage rates remaining high.
• The Philadelphia Fed Index dropped to 1.3 in June (Briefing.com consensus 6.5) from 4.5 in May.
  • The key takeaway from the report is that the indexes for new orders, shipments, and employment all remained negative while the prices paid component increased from 18.7 to 22.5.
• The Q1 Current Account Balance widened to -$237.6 billion (Briefing.com consensus -$203.0 billion) from a downwardly revised $221.8 billion (from -$194.8 billion).
  • The key takeaway from the report is that the widening in the deficit mostly reflected an expanded deficit on goods.
• The weekly EIA Crude Oil Inventories showed a draw of 2.55 million barrels versus last week's build of 3.73 million barrels