Stock Market Update

[BRIEFING.COM] The stock market is trading above prior closing levels, but the major indices have drifted lower through the session. The S&P 500, which was trading up as much as 1.7% at its high, sports a 0.4% gain. 

The index level deterioration coincided with some influential names turning lower. NVIDIA (NVDA 103.12, -1.13, -1.1%) had been up 4.4% at its best level and Broadcom (AVGO 142.65, -1.26, -0.9%) had been trading 4.3% higher earlier. 

Many other stocks participated in the pullback. The equal-weighted S&P 500 was trading up 1.5% at its intraday high, but shows a 0.4% gain now. Market breadth has favored advancers through the entire session, reflecting an underlying positive bias. Advancers have a 5-to-2 lead over decliners at the NYSE.

Today's upside bias is driven by momentum following yesterday's session and an emerging notion that U.S. recession fears were overblown. Also, concerns about further unwinding of carry trade positions have dissipated somewhat after the Bank of Japan's Deputy Governor Uchida said the bank will not raise rates during market instability and the yen weakened against the dollar (USD/JPY +1.9% to 147.10).

Dow components Amgen (AMGN 310.46, -18.50, -5.6%) and Walt Disney (DIS 87.08, -2.88, -3.2%) have underperformed today after reporting earnings.

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 6.9%; Prior -3.9%
• Weekly EIA Crude Oil Inventories showed a draw of 3.73 million barrels following last week's draw of 3.44 million barrels