Stock Market Update

[BRIEFING.COM] The market exhibit mixed action on this quadruple witching options expiration day, which resulted in above-average volume. Market breadth reflected a slight negative skew for most of the session, but advancers had an 11-to-10 lead over decliners at the NYSE and at the Nasdaq by the close. 

The lack of conviction today stemmed from a sense that stocks are due for a pullback. The mixed feeling at the index-level was also driven by mixed action in the mega cap space.

Shares of NVIDIA (NVDA 126.57, -4.21, -3.2%), Meta Platforms (META 494.78, -6.92, -1.4%), Broadcom (AVGO 1658.63, -75.93, -4.4%), Apple (AAPL 207.49, -2.19, -1.0%), and Eli Lilly (LLY 883.88, -2.11, -0.2%) closed with declines while Amazon (AMZN 189.08, +2.98, +1.6%), Alphabet (GOOG 180.26, +2.55, +1.4%), and Microsoft (MSFT 449.78, +4.08, +0.9%) registered gains. 

S&P 500 sector performance was also mixed. None of the sectors moved more than 0.7% in either direction except the consumer discretionary sector, which rose 1.0%, and the information technology sector, which fell 0.8%, due to their respective mega cap components.

Treasuries saw some early gains, but those gains were relinquished after the release of some stronger-than-expected preliminary June S&P Global U.S. Manufacturing and Services PMI readings that overshadowed an existing home sales report for May that was close to expectations. 

The 2-yr note yield was unchanged from yesterday, and up five basis points for the week, at 4.73%. The 10-yr note yield settled unchanged today at 4.26%, which is up five basis points this week.

• Nasdaq Composite: +17.8% YTD
• S&P 500:+14.6% YTD
• S&P Midcap 400: +5.4% YTD
• Dow Jones Industrial Average: +3.9% YTD
• Russell 2000: -0.3% YTD

Reviewing today's economic data:

• June S&P Global US Manufacturing PMI - Prelim 51.7; Prior 51.3
• June S&P Global US Services PMI - Preliminary 55.1; Prior 54.8
• May Existing Home Sales 4.11 mln (Briefing.com consensus 4.10 mln); Prior 4.14 mln
  • The key takeaway from the report is that there was a pickup in inventory of homes for sale; however, inventory overall remains constrained, which is leading to ongoing price gains that continue to pose affordability pressures, along with elevated mortgage rates, for prospective buyers.
• May Leading Indicators -0.5% (Briefing.com consensus -0.3%); Prior -0.6%

Looking ahead, there is no US economic data of note on Monday. Tuesday's calendar features: 

• 9:00 ET: April FHFA Housing Price Index (prior 0.1%) and April S&P Case-Shiller Home Price Index (Briefing.com consensus 6.9%; prior 7.4%)
• 10:00 ET: June Consumer Confidence (Briefing.com consensus 100.0; prior 102.0)