Stock Market Update

[BRIEFING.COM] The stock market trades somewhat mixed today. The S&P 500 (-0.2%) and Nasdaq Composite (-0.8%) are lower and market breadth is negative, yet the equal-weighted S&P 500 trades up 0.4% and the Dow Jones Industrial Average sports a 0.5% gain. 

Rising rates and ongoing worries about sticky inflation have limited buying interest in equities. The 10-yr yield sits at 4.77% and the 2-yr yield is at 4.39%. Also, the NY Fed's December 2024 survey showed median inflation expectations increased to 3.0% from 2.6% at the three-year-ahead horizon.

Expectations decreased at the five-year ahead horizon (to 2.7% from 2.9%) and remained unchanged at 3.0% at the one-year ahead horizon. 

The outperformance of the DJIA is related in part to the move up in one of its weightiest components -- UnitedHealth (UNH 546.46, +25.77, +5.0%) -- following news after Friday's close that the U.S. proposed a 4.3% increase to Medicare Advantage plan payments, a $21 billion boost to insurers for Medicare payments, according to Bloomberg.

Other health care related names have benefitted from the news, leading the S&P 500 health care sector to trade 1.1% higher. 

Bank stocks are another pocket of strength in front earnings reports this week from big names in the sector. JPMorgan Chase (JPM 242.37, +2.50, +1.1%), Citigroup (C 71.95, +0.55, +0.8%), and US Bancorp (USB  47.70, +0.33, +0.7%) are standouts in that respect. 

Today's economic lineup features the December Treasury Budget at 14:00 ET.