Stock Market Update

[BRIEFING.COM] The stock market is lower today in a broad retreat. The major indices sport losses ranging from 0.7% to 2.8%.

A sharp loss in Tesla (TSLA 219.95, -26.46, -10.7%) after its relatively disappointing earnings report has contributed to the downside bias. Some of the selling activity in TSLA is also linked to profit-taking interest after big gains this month. With today's losses, TSLA is still up 11.1% in July.

Alphabet (GOOG 174.77, -8.86, -4.8%) and Dow component Visa (V 255.46, -9.33, -3.5%) are also among the influential laggards following their earnings reports. Visa mentioned a slowdown in spending by lower-income consumers, which contributed to some emerging concerns about economic and earnings growth.

Other mega cap stocks trade sharply lower, weighing on the broader market. The Vanguard Mega Cap Growth ETF (MGK) is down 2.3%. NVIDIA (NVDA 116.27, -6.31, -5.2%), Meta Platforms (META 466.79, -21.09, -4.8%), Apple (AAPL 217.91, -7.19, -3.2%), and Microsoft (MSFT 429.12, -15.57, -3.5%) are losing standouts in that respect.

The 10-yr note yield is unchanged from yesterday at 4.24% and the 2-yr note yield is down eight basis points to 4.39%.

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index -2.2%; Prior -3.9%
• June Adv. Intl. Trade in Goods -$96.8 bln; Prior was revised to -$99.4 bln from -$100.6 bln
• June Adv. Retail Inventories 0.7%; Prior was revised to 0.6% from 0.7%
• June Adv. Wholesale Inventories 0.2%; Prior 0.6%
• July S&P Global US Manufacturing PMI - Prelim 49.5; Prior 51.6
• July S&P Global Services PMI - Prelim 56.0; Prior 55.3
• June New Home Sales 617K (Briefing.com consensus 640K); Prior was revised to 621K from 619K
  • The key takeaway from the report is that new home sales activity remained soft in June, pressured by a lack of lower-priced homes and affordability pressures stemming from the persistence of high mortgage rates and higher selling prices.