Stock Market Update

[BRIEFING.COM] The stock market trades mostly higher at the index-level. The S&P 500 (+0.2%), Dow Jones Industrial Average (+0.2%), and Nasdaq Composite (+0.7%) trade near their best levels of the session. Gains are mostly driven by mega cap stocks. 

Apple (AAPL 216.98, +6.36, +3.0%), Amazon.com (AMZN 197.54, +4.31, +2.2%), Microsoft (MSFT 454.55, +7.64, +1.7%), Tesla (TSLA 209.28, +11.41, +5.8%), and Broadcom (AVGO 1640.59, +35.80, +2.2%) are among the top performing names in the mega cap space. 

There's an underlying negative vibe driving today's action, though. Decliners lead advancers by a better than 2-to-1 margin at the NYSE and by a roughly 3-to-2 margin at the Nasdaq. The equal-weighted S&P 500 sports a 0.8% decline.

A jump in market rates has kept pressure on equities. The 2-yr note yield is up six basis points to 4.78% and the 10-yr note yield is up 13 basis points to 4.47%.

This price action follows the release of the June ISM Manufacturing Index, which checked in at 48.5% (Briefing.com consensus 49.1%) versus 48.7% in May. A number below 50.0% denotes a contraction in economic activity in the manufacturing sector. Separately, construction spending dipped 0.1% in May (Briefing.com consensus 0.1%) following an upwardly revised 0.3% increase (from -0.1%) in April.

Reviewing today's economic data:

• June ISM Manufacturing Index 48.5% (Briefing.com consensus 49.1%); Prior 48.7%
  • The key takeaway from the report is that each component remained in a state of contraction -- except prices, which slowed from the prior month -- signaling a state of subdued activity for the manufacturing sector that fits with a slowing economy.
• May Construction Spending -0.1% (Briefing.com consensus 0.1%); Prior was revised to 0.3% from -0.1%
  • The key takeaway from the report was the drag in private residential spending that was driven by a decline in new single-family construction at a time when overall housing inventory has been constrained due to a lack of inventory for existing homes.
• June S&P Global US Manufacturing PMI - Final 51.6; Prior 51.7