Stock Market Update

[BRIEFING.COM] The stock market showed resilience today as strength in the broader market propelled the major averages to a mixed finish despite weakness across tech names. 

The DJIA (+1.2%) outperformed from the open, while the S&P 500 (+0.2%) managed a modest gain, and pressure in the information technology sector (-0.7%) kept the Nasdaq Composite (-0.3%) pinned beneath its baseline. 

Some profit-taking across the mega-caps was not unlikely considering yesterday's rally, though headlines of Softbank (SFTBY 75.00, +2.60, +3.59%) selling its entire stake in NVIDIA (NVDA 193.16, -5.89, -2.96%) for $5.8 billion added fuel to the sell-off. Even though Softbank is set to put the proceeds towards a $22.5 billion investment in OpenAI, chipmakers were unable to shake their early sluggishness. 

Advanced Micro Devices (AMD 237.52, -6.46, -2.65%) moved lower despite making some impressive claims at its financial analyst day event. The company projects $100 billion in data center revenue over the next three to five years, with the total addressable data center market increasing to $1 trillion by 2030. The PHLX Semiconductor Index closed with a 2.5% loss. 

While pressure across chipmakers kept NVIDIA lower for the day, several of the technology sector's other mega-cap names posted solid performances. 

Apple (AAPL 275.25, +5.82, +2.16%) was a standout among the group, trading higher as President Trump said the U.S. is nearing a trade deal with India, one of the largest manufacturers of iPhones.

Meanwhile, Microsoft (MSFT 508.68, +2.68, +0.53%) shook off its early sluggishness, rising above its flatline with the S&P 500 shortly after midday. 

The consumer discretionary (+0.2%) and communication services (+0.5%) sectors also reversed earlier losses as mega-cap performance improved. The Vanguard Mega Cap Growth ETF finished just 0.1% lower. 

With the AI trade taking a backseat in today's action, the market relied on broad participation to facilitate gains at the index level, with nine S&P 500 sectors finishing higher. The S&P 500 Equal Weighted Index (+0.6%) finished with a solid gain as a result. 

Investors continued this month's trend of bargain hunting within the health care sector (+2.3%), which now holds a 4.5% gain for the month, the best among S&P 500 sectors. 

The sector also benefitted from the FDA's move to lift "black box" warnings from hormone replacement therapy products while also approving two new drugs to treat menopausal symptoms.

Viatris (VTRS 11.20, +1.03, +10.13%) captured the widest gain in the S&P 500 today, while Moderna (MRNA 26.41, +1.65, +6.66%), Merck (MRK 90.95, +4.20, +4.84%), and Amgen (AMGN 338.45, +14.79, +4.57%) also posted solid performances. 

Elsewhere, the energy sector (+1.3%) moved higher as crude oil futures settled today's session $0.88 higher (+1.5%) at $61.02 per barrel, and the consumer staples (+1.2%), materials (+1.1%), and real estate (+1.1%) sectors captured gains wider than 1.0%. 

Macro developments were relatively slim today.

The Senate passed a bill to fund the government through January 30, with a House vote expected on Wednesday. While an end to the government shutdown will likely be viewed as a tailwind for the markets, airlines warn that it will take time for flight schedules to return to normal when the government reopens later this week, potentially impacting Thanksgiving travel, according to The Washington Post. United Airlines (UAL 94.95, -1.19, -1.24%), Delta Air Lines (DAL 57.73, -0.83, -1.42%), and Southwest Air (LUV 31.98, -0.68, -2.08%) all traded lower today, keeping the industrials sector (flat) from closing with a gain. 

Q3 earnings are also winding down, though Paramount Skydance (PSKY 16.74, +1.49, +9.77%) moved sharply higher despite missing earnings estimates. The company's core DTC business is scaling profitably, and substantial cost reductions, plus boosted synergy forecasts, are improving margin outlook and investor confidence.

Outside of the S&P 500, the Russell 2000 (+0.1%) and S&P Mid Cap 400 (flat) reversed earlier losses.

Although weakness in tech and mixed performances across mega-cap names kept the major averages from closing higher across the board, the market benefited from its second consecutive day of broad-based participation this week, helping to limit downside pressure even as leadership rotated away from tech. While high beta names underperformed today, the retreat is modest in comparison to yesterday's advance, leaving the major averages heading into the midweek session with solid week-to-date gains. 

The U.S. Treasury market was closed today in observance of Veteran's Day. 

• Nasdaq Composite: +21.5% YTD
• S&P 500: +16.4% YTD
• DJIA: +12.7% YTD
• Russell 2000: +10.2% YTD
• S&P Mid Cap 400: + 4.6% YTD

Reviewing today's data:

• October NFIB Small Business Optimism 98.2 (Briefing.com consensus 98.3); Prior 98.8