Stock Market Update

[BRIEFING.COM] Today's trade features mostly negative action. The S&P 500 is trading 0.6% lower and the equal-weighted S&P 500 shows a 0.1% decline.

Mixed action in the mega cap space is keeping the broader market in check. The PHLX Semiconductor Index (SOX) was showing a 1.9% gain at its high of the day, but traded down as much as 1.2% at its low of the day. The SOX sports a 0.3% gain now. 

NVIDIA (NVDA 120.50, +2.54, +2.2%) has exhibited similarly volatile price action to the SOX so far while other mega cap stocks fall under ongoing profit taking activity. The Vanguard Mega Cap Growth ETF (MGK) shows a 1.1% decline.

Homebuilder stocks are outperforming the broader market after earnings results from D.R. Horton (DHI 173.78, +16.27, +10.3%). DHI is the top performing stock in the S&P 500. The SPDR S&P Homebuilder ETF (XHB) sports a 1.5% gain.

Still, the S&P 500 consumer discretionary sector trades 0.7% lower despite strength in its homebuilder components and a gain in Tesla (TSLA 253.50, +4.92, +2.0%). A sizable decline in shares of Amazon.com (AMZN 182.57, -5.39, -2.9%) has contributed to the sector's performance.

Domino's Pizza (DPZ 411.62, -61.61, -13.0%) is the worst performer in the sector, and in the S&P 500, after reporting earnings. The company beat earnings estimates, but lowered its long term guidance for annual global net store growth.

Reviewing today's economic data:

• Weekly Initial Claims 243K (Briefing.com consensus 225K); Prior was revised to 223K from 222K; Weekly Continuing Claims 1.867 mln; Prior was revised to 1.847 mln from 1.852 mln
  • The key takeaway from the report is that it fits with the view that there is some softening in the labor market, which is a trend that will massage the market's belief that the Fed is likely to cut the target range for the fed funds rate before the end of the year.
• July Philadelphia Fed Index 13.9 (Briefing.com consensus 2.9); Prior 1.3
• June Leading Indicators -0.2% (Briefing.com consensus -0.3%); Prior was revised to -0.4% from -0.5%