Stock Market Update

[BRIEFING.COM] The market has exhibited mixed action at the index level. The S&P 500 (flat), the Nasdaq Composite (+0.2%), and the Dow Jones Industrial Average (flat) have traded around their prior closing levels, sporting muted gains or losses. 

The S&P 500 bounced off its 50-day moving average (5,506) shortly after the open, which has helped to limit follow-through selling after yesterday's declines. Like yesterday, Treasury yields are lower after some soft economic data, but that hasn't translate to losses for equities due to optimism around Fed rate cuts. 

Buying picked in Treasuries in response to the July JOLTS Report, which indicated that job openings declined to 7.673 million (the lowest since January 2021) from a downwardly revised 7.910 million (from 8.184 million) in June. The 10-yr yield is down six basis points to 3.78% and the 2-yr yield is down ten basis points to 3.79%.

Some choppy action in the mega cap space has contributed to the mixed action at the index level.  NVIDIA (NVDA 109.01, +1.0, +0.9%) traded down as much as 3.6% following news that it received a DOJ subpoena in the escalating antitrust probe, according to Bloomberg. Shares also traded up as much as 4.9% on no specific news.

None of the S&P 500 sectors are moving more than 0.7% in either direction. The utilities sector leads the pack, up 0.6%, and the energy sector brings up the rear, down 0.7%. 

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 1.6%; Prior 0.5%
• July Trade Balance -$78.8 bln (Briefing.com consensus -$78.5 bln); Prior was revised to -$73.0 bln from -$73.1 bln
  • The key takeaway from the report is the uptick in imports. While that will act as a drag on Q3 GDP forecasts, the increase in imports will nonetheless be construed as a reassuring demand signal for the U.S. economy.
• July Factory Orders 5.0% (Briefing.com consensus 4.5%); Prior -3.3%
  • The key takeaway from the report is that business spending languished in July.
• July JOLTS - Job Openings 7.673 mln; Prior was revised to 7.910 mln from 8.184 mln