Stock Market Update

[BRIEFING.COM] Today's trade features a positive bias. The S&P 500 (+0.9%), Nasdaq Composite (+1.2%), Dow Jones Industrial Average (+1.2%), and Russell 2000 (+1.3%) trade near their highs of the day. NVIDIA (NVDA 121.09, -4.51, -3.5%) is a notable exception in an otherwise upbeat session after reporting earnings.

NVIDIA reported above-consensus earnings and guidance, but did not live up to ultra-high expectations. Shares were also up more than 150% for the year coming into today, so selling interest is related to some consolidation as well. 

Other mega caps and semiconductor-related shares have traded higher through the session, having an outsized impact on index gains. Microsoft (MSFT 419.20, +8.55, +2.1%), Apple (AAPL 232.19, +5.69, +2.5%), and Amazon.com (AMZN 173.72, +2.92, +1.7%), which are the top weighted stocks excluding NVDA, are among standouts in that respect.

The Vanguard Mega Cap Growth ETF (MGK) shows a 0.9% gain and the PHLX Semiconductor Index (SOX) trades 1.5% higher.

Many other stocks are participating in a broad advance. Seven of the S&P 500 sectors trade more than 0.9% higher and 26 of the 30 Dow components trade up, including Salesforce (CRM 259.43, +0.53, +0.2%) after its earnings report.

Positive responses to other earnings reports from names like CrowdStrike (CRWD 278.37, +14.39, +5.5%), Affirm Holdings (AFRM 41.75, +10.17, +32.2%), and Best Buy (BBY 100.79, +13.01, +14.4%) have also contributed to the upside bias, along with relatively pleasing economic releases.

Jobless claims remain steady, below recession-like levels, and Q2 GDP was revised up. Treasury yields moved up in response to this morning's data. The 10-yr note yield is up three basis points to 3.87%. The 2-yr yield is at 3.89%, up two basis points from yesterday. 

Reviewing today's economic data:

• July Adv. Intl. Trade in Goods -$102.7 bln; Prior was revised to -$96.6 bln from -96.8 bln
• July Adv. Retail Inventories 0.8%; Prior was revised to 0.9% from 0.7%
• July Adv. Wholesale Inventories 0.3%; Prior was revised to 0.1% from 0.2%
• Weekly Initial Claims 231K; Prior was revised to 233K from 232K, Weekly Continuing Claims 1.868 mln; Prior was revised to 1.855 mln from 1.863 mln
  • The key takeaway from the report is the steady standing of initial jobless claims, which remain well below levels typically associated with an economy in recession.
• Q2 GDP-Second Estimate 3.0%; Prior 2.8%, Q2 GDP Deflator - Second Estimate 2.5%; Prior 2.3%
  • The key takeaway from the report is that consumer spending (+2.9%) was solid in the second quarter, exceeding the prior eight quarter average of 2.2%.
• July Pending Home Sales -5.5% (Briefing.com consensus 1.2%); Prior 4.8%