Stock Market Update

[BRIEFING.COM] Today's trade has been lackluster so far. The major indices trade near their prior closing levels, sporting modest gains or losses. Market breadth has been mixed, reflecting a lack of conviction in front of the FOMC policy directive and Summary of Economic Projections (SEP) at 2:00 ET.

Market participants expect the committee to lower rates for the first time since March 2020. The dot-plot in the SEP will highlight the estimated path of the policy rate. The market will also focus on Fed Chair Powell's tone in his press conference at 2:30 ET.

The market-cap weighted S&P 500 trades up 0.1% and the equal-weighted S&P 500 shows a 0.03% gain. None of the S&P 500 sectors are moving more than 0.4% in either direction.

The energy sector leads the pack, up 0.4% from yesterday, despite downside moves in commodity futures. WTI crude oil futures are down 0.7% to $69.49/bbl and natural gas futures are down 0.8% to $2.30/mmbtu. 

The utilities (-0.3%) and materials (-0.2%) sectors show the "biggest" declines.

The 2-yr note yield is up six basis points in front of the FOMC decision at 3.65%. The 10-yr yield is at 3.68%.

Reviewing today's economic data:

• The weekly MBA Mortgage Applications Index rose 14.2% with refinance applications surging 24% and purchase applications jumping 5%
• Housing starts increased 9.6% month-over-month to a seasonally adjusted annual rate of 1.356 million units (Briefing.com consensus 1.320 million), bolstered by a 15.8% increase in single-unit starts. Building permits increased 4.9% month-over-month to a seasonally adjusted annual rate of 1.475 million (Briefing.com consensus 1.415 million), aided by a 2.8% increase in single-unit permits.
  • The key takeaway from the report is that single-unit starts and permits were up in every region, reflecting increased activity among builders that has been facilitated by sliding interest rates and pent-up demand.
• The weekly EIA Crude Oil Inventories showed a draw of 1.63 million barrels following last week's build of 833,000 barrels