Stock Market Update

[BRIEFING.COM] The stock market has a mixed showing today in front of influential earnings news after the close. The Dow Jones Industrial Average (+0.5%) and Russell 2000 (+0.6%) closed with gains while the S&P 500 (-0.5%) and Nasdaq Composite (-1.3%) settled lower, clipped by losses in growth stocks, mega cap names, and semiconductor-related shares. 

The Russell 3000 Growth Index logged a 1.1% decline, the Vanguard Mega Cap Growth ETF (MGK) fell 1.3%, and the PHLX Semiconductor Index (SOX) registered a 3.9% loss. NVIDIA (NVDA 103.73, -7.86, -7.0%) was among the top laggard from the spaces. 

Dow components Merck (MRK 115.25, -12.53, -9.8%) and Procter & Gamble (PG 161.70, -8.23, -4.8%) were also among the influential losers after reporting earnings.

Meanwhile, F5 Networks (FFIV 200.66, +23.07, +13.0%), Stanley Black & Decker (SWK 106.05, +9.62, +10.0%), and PayPal (PYPL 64.00, +5.06, +8.6%) were top performing S&P 500 components after their quarterly reports. 

Market breadth favored advancers by a 3-to-2 margin at the NYSE, but decliners had a 4-to-3 lead over advancers at the Nasdaq. 

The performance of the S&P 500 sectors also reflected mixed action. The heavily-weighted information technology sector had the weakest showing, dropping 2.2%, while the financial sector jumped 1.2%.

The equity and bond markets didn't react much to this morning's better-than-expected consumer confidence index for July.  The 10-yr note yield declined four basis points to 4.14% and the 2-yr note yield declined three basis points to 4.36%. This price action was in front of tomorrow's release of the latest FOMC Statement, which is expected to set the stage for a rate cut in September.

• Nasdaq Composite:+14.2% YTD
• S&P 500: +14.0% YTD
• Russell 2000: +10.7% YTD
• S&P Midcap 400: +10.7% YTD
• Dow Jones Industrial Average: +8.1% YTD

Reviewing today's economic data:

• May FHFA Housing Price Index 0.0%; Prior was revised to 0.3% from 0.2%
• May S&P Case-Shiller Home Price Indez 6.8% (Briefing.com consensus 6.8%); Prior was revised to 7.3% from 7.2%
• July Consumer Confidence 100.3 (Briefing.com consensus 99.8); Prior was revised to 97.8 from 100.4
  • The key takeaway from the report is that consumers are starting to take notice of slowing labor market conditions, yet their overall assessment of the current labor market situation is still quite strong.
• June JOLTS - Job Openings 8.184 mln; Prior was revised to 8.230 mln from 8.140 mln

Looking ahead, Wednesday's economic calendar features:

• 7:00 ET: Weekly MBA Mortgage Index (prior -2.2%)
• 8:15 ET: July ADP Employment Change (Briefing.com consensus 160,000; prior 152,000)
• 8:30 ET: Q2 Employment Cost Index (Briefing.com consensus 1.0%; prior 1.2%)
• 10:00 ET: June Pending Home Sales (Briefing.com consensus 1.5%; prior -2.1%)
• 10:30 ET: Weekly crude oil inventories (prior (-3.74 mln)
• 14:00 ET: July FOMC Rate Decision (Briefing.com consensus 5.25-5.50%; prior 5.25-5.50%)