Stock Market Update

[BRIEFING.COM] The stock market has advanced today as tech and mega-cap names rebound from yesterday's slide, pushing the major averages higher despite mixed earnings reactions and a backdrop of geopolitical uncertainty. 

Gains in tech, mega-cap, and small-cap names contribute to the outperformance of the Nasdaq Composite (+0.8%), while the S&P 500 (+0.6%) and DJIA (+0.3%) hold more modest gains. The small-cap Russell 2000 (+0.9%) and S&P Mid Cap 400 (+1.1%) also outperform. 

The information technology sector (+1.0%) steadily ticks higher throughout the session, supported by strength in its chipmaker components after Lam Research's (LRCX 148.11, +6.86, +4.86%) beat and raise Q3 earnings report. The PHLX Semiconductor Index's 2.4% gain today negates yesterday's loss of the same size. 

The sector also benefits from strong leadership in its largest names outside of the semiconductor space, contributing to a 0.8% advance in the Vanguard Mega Cap Growth ETF.

Importantly, Tesla's (TSLA 444.48, +5.50, +1.25%) earnings miss, which resulted from pressured margins, has not weighed on the broader mega-cap group today, which is rebounding nicely from yesterday's retreat. 

It is also worth noting that Tesla itself has mounted a solid rebound, now up over 1.0% after holding a loss that approached 4.0%. Netflix (NFLX 1112.84, -3.53, -0.32%), which slid 10% yesterday after a rare earnings miss attributed to a one-time item, has not yet seen the same buy-the-dip interest. 

In other earnings news, Dow component Honeywell (HON 222.25, +15.64, +7.57%) pushes the industrials sector (+0.9%) higher after a beat and raise report, and the chemical company Dow (DOW 24.08, +2.38, +10.97%) boosts the materials sector (+0.8%) after an earnings beat of its own. 

The defensive consumer staples (-0.7%) and utilities (-0.3%) sectors move lower after advancing yesterday. 

Meanwhile, the energy sector (+1.6%) expands on yesterday's strength as oil prices climb $3.41 (+5.8%) to $61.91 per barrel after the Treasury Department announced sanctions on Russian oil giants Rosneft and Lukoil.

President Trump is no longer scheduled to meet with Russian President Putin in Hungary, as Russia has stood firm against an immediate ceasefire to the war in Ukraine. 

On the trade front, U.S. officials are still set to negotiate with China's Vice Premier He Lifeng over the weekend. 

President Trump will be making an announcement at 3:00 ET, but the topic is still unknown. 

Reviewing today's data:

• September Existing Home Sales 4.06 mln (Briefing.com consensus 4.05 mln); Prior 4.00 mln
  • The key takeaway from the report is that home sales in September were aided by falling mortgage rates, which eased (but did not negate) affordability constraints for some home buyers.