Stock Market Update

[BRIEFING.COM] Today's trade features a slightly negative bias, but like recent sessions, there isn't a lot of conviction from either buyers or sellers. The S&P 500 (-0.4%), Nasdaq Composite (-0.8%), and Dow Jones Industrial Average (-0.2%) trade off session lows.

The ongoing lackluster price action stems from hesitation in front of Fed Chair Powell's speech on Friday at the Jackson Hole Economic Symposium. The lack of interest on the part of buyers also relates to some consolidation efforts after the S&P 500 traded within 1.0% of its all-time high.

Today's economic data didn't garner a big response from either stocks or bonds. The lineup featured some slightly worse than expected initial jobless claims, some weaker than expected preliminary manufacturing PMI data for August, some stronger than expected preliminary Services PMI data for August, and some better than expected existing home sales for July, which were up 1.3% month-over-month but still down 2.5% year-over-year.

Losses in the mega cap and semiconductor spaces have an outsized impact on index performance, but many stocks are participating in downside moves. The PHLX Semiconductor Index (SOX) shows a 2.0% decline and the Vanguard Mega Cap Growth ETF (MGK) trades 1.0% lower.

This price action has led the S&P 500 information technology (-1.3%) and consumer discretionary (-1.1%) sectors to trade more than 1.0% lower. None of the remaining nine sectors are moving more than 0.5% in either direction.

The Invesco S&P 500 Equal Weight ETF (RSP) sports a 0.3% decline.

Reviewing today's economic data:

• Initial jobless claims for the week ending August 17 increased by 4,000 to 232,000 (Briefing.com consensus 225,000) and continuing jobless claims for the week ending August 10 increased by 4,000 to 1.863 million.
  • The key takeaway from the report is that it won't alter the market's rate cut view or the inclination to think the economy can avoid a hard landing.
• August S&P Global US Manufacturing PMI - Prelim 48.0 vs. 49.6 prior
• August S&P Global US Services PMI - Prelim 55.2 vs. 55.0 prior
• Existing home sales increased 1.3% month-over-month in July to a seasonally adjusted annual rate of 3.95 million (Briefing.com consensus 3.90 million) from an upwardly revised 3.90 million (from 3.89 million) in June. It is the first increase in existing home sales following four straight monthly declines. Sales were down 2.5% from the same period a year ago.
  • The key takeaway from the report is that more inventory is becoming available with mortgage rates dropping, yet it is still a tight market, evidenced by the ongoing increase in the median home price.