Stock Market Update

[BRIEFING.COM] Today's trade features a mostly negative bias amid rising market rates. Decliners lead advancers by a 3-to-2 margin at the NYSE and by a 4-to-3 margin at the Nasdaq. Still, the major indices are trading near their best levels of the session thanks to gains in mega cap names.

Apple (AAPL 213.67, +4.61, +2.2%), Amazon.com (AMZN 192.69, +6.34, +3.4%), and Tesla (TSLA 194.68, +7.34, +3.9%) are among the top performers from the space. The Vanguard Mega Cap Growth ETF (MGK) is up 0.2%.

Shares of NVIDIA (NVDA 123.60, -2.49, -2.0%) had been up as much as 1.6%, but trade 2.0% lower now. 

Many other stocks are participating in downside moves, which have been relatively modest. The equal-weighted S&P 500 sports a 0.5% decline. Ten of the 11 S&P 500 sectors are trading lower, leaving the consumer discretionary sector alone in positive territory. 

The industrial sector (-0.3%) lags index performance so far despite a jump in shares of FedEx (FDX 292.20, +35.79, +14.0%) following better-than-expected earnings and an indication that demand is expected to improve through FY25.

The price action in FedEx has also boosted the Dow Jones Transportation Average, which sports a 2.0% gain.

Rising market rates have kept pressure on equities. The 10-yr note yield is up six basis points to 4.30% and the 2-yr note yield is unchanged at 4.73%.

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 0.8%; Prior 0.9%
• May New Home Sales 619K (Briefing.com consensus 650K); Prior was revised to 698K from 634K
  • The key takeaway from the report is that new home sales activity languished in May, but after accounting for the upward revision to April sales, the combined two-month period was actually better than what was embedded in the consensus estimate for May (650,000) and the original report for April (634,000). Even so, it is clear that higher mortgage rates and elevated prices continue to pressure new home sales (-16.5% yr/yr).