Stock Market Update

[BRIEFING.COM] The stock market has moved in a sideways fashion after a brief opening rally resulted in new record highs for the S&P 500 (flat) and Nasdaq Composite (+0.3%). 

The DJIA is also flat just after midday as the market meanders amid a lack of directional drivers.

A strong first half from the information technology sector (+0.6%) underpins the outperformance of the Nasdaq Composite over its peers.

The sector benefits from strength in its chipmaker components, sending the PHLX Semiconductor Index (+1.9%) to a fresh record, while Fair Isaac (FICO 1827.95, +315.24, +20.84%) leads all S&P 500 names after launching a direct license program for mortgage lending, giving tri-merge resellers the option to calculate and distribute FICO Scores directly to their customers.

Elsewhere, the materials sector (+0.7%) trades higher after closing with the widest loss yesterday. 

Though nine S&P 500 sectors trade in negative territory at this juncture, none hold losses wider than 0.8%. 

The ongoing government shutdown prevented the release of this morning's economic data, contributing to today's underwhelming action. Even if the market had received today's jobless claims data, yesterday's weaker-than-expected September ADP Payrolls Report (-32k; Briefing.com consensus: 40k) increased the odds of a 25-basis point rate cut in October to an almost certainty, leaving little runway for easing expectations to act as a catalyst in the near term. 

Corporate headlines are also slim today, though there have been a few stock-specific developments. 

Berkshire Hathaway Inc. (BRK-B 494.68, -3.52, -0.71%) has entered into an all-cash agreement to acquire Occidental Petro (OXY 44.14, -3.58, -7.49%) chemical unit, OxyChem, for $9.7 billion, marking its biggest transaction since the $11.6 billion Alleghany acquisition in 2022.

Tesla (TSLA 444.02, -15.44, -3.36%) Q3 delivered over 497,000 vehicles in Q3, though this figure was largely pulled forward by the expiration of the $7,500 EV tax credit, raising questions around Q4 demand.

Mega-cap names are putting up mixed performances, leaving the Vanguard Mega Cap Growth ETF with a slight 0.1% gain.

Smaller-cap names are also on a flattish trajectory today, with the Russell 2000 unchanged for the day while the S&P Mid Cap 400 (-0.3%) holds a modest loss.