Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.1%) and Nasdaq Composite (+0.3%) closed at fresh record highs after a somewhat mixed session. The Russell 2000 (+0.6%) also closed with a gain while the Dow Jones Industrial Average declined 0.1%.

Mixed price action in the mega cap space contributed to the lackluster showing in the S&P 500 and Nasdaq Composite, but the underlying vibe was positive through the entire session. Advancers led decliners by an 11-to-10 margin at the NYSE and by a 4-to-3 margin at the Nasdaq.

Meta Platforms (META 529.32, -10.59, 2.0%) logged a solid decline, weighing on the communication services sector (-1.0%). Alphabet (GOOG 190.48, -1.48, -0.8%), Microsoft (MSFT 466.24, -1.32, -0.3%), Amazon.com (AMZN 199.29, -0.71, -0.4%) also registered losses.

Meanwhile, semiconductor stocks outperformed the broader market, providing a measure of support. The PHLX Semiconductor Index (SOX) showed a 1.9% gain at the close. NVIDIA (NVDA 128.20, +2.37, +1.9%) and Broadcom (AVGO 1745.86, +42.55, +2.5%) were winning standouts from the space. 

This price action contributed to the gain in the information technology sector (+0.7%).

The muted action today was also related to some hesitation in front of market-moving events this week. Specifically, the June Consumer Price Index and Producer Price Index are released on Wednesday and Thursday, respectively, and earnings season starts this week when large cap banks like JPMorgan Chase (JPM 205.17, +0.38, +0.2%), Wells Fargo (WFC 59.01, -0.61, -1.0%), and Citigroup (C 64.74, +0.71, +1.1%) report.

The 10-yr note yield settled unchanged at 4.27% and the 2-yr note yield rose two basis points to 4.62%.

• Nasdaq Composite: +22.6% YTD
• S&P 500: +16.8% YTD
• Dow Jones Industrial Average: +4.4% YTD
• S&P Midcap 400: +4.5% YTD
• Russell 2000: +0.6% YTD

Reviewing today's economic data:

• Consumer credit increased by $11.3 bln in May (Briefing.com consensus $9.5 bln) after increasing an upwardly revised $6.5 bln (from $6.4 bln) in April.
  • The key takeaway from the report is that revolving credit growth accelerated strongly after a slight contraction in May, so the question is whether consumers are turning to revolving credit because of need or increased optimism about economic prospects.

Tuesday's economic lineup is limited to the June NFIB Small Business Optimism survey at 6:00 ET.