Stock Market Update

[BRIEFING.COM] The stock market staged a solid rebound today, with early strength in mega-cap and technology names broadening into a wider advance. The S&P 500 (+0.4%), Nasdaq Composite (+0.7%), and DJIA (+0.5%) all finished firmly higher, even as the information technology sector (-0.1%) slipped into the red late in the session.

Several of the market's largest names captured gains that mirrored yesterday's losses, though mixed strength ultimately saw the Vanguard Mega Cap Growth ETF (+0.1%) finish with just a modest gain. The communication services (+1.7%) and consumer discretionary (+1.0%) sectors finished at the top of the standings by way of their largest components, as mega-cap weakness was largely concentrated in the information technology sector. 

Meta Platforms (META 635.95, +8.63, +1.38%) traded higher for the first day since its earnings report last Wednesday, while Alphabet (GOOG 284.75, +6.69, +2.41%) reapproached last week's record high levels. 

Tesla (TSLA 462.23, +17.97, +4.05%) was a standout among the mega-caps, reclaiming the bulk of yesterday's 5.2% slide despite reports of weak sales in Germany. 

Elsewhere in the consumer discretionary sector, McDonald's (MCD 305.67, +6.46, +2.16%) traded higher despite a Q3 earnings miss and in-line revenue, with investors focusing on stronger-than-expected same-store sales momentum in both global and U.S. markets.

The information technology sector (-0.1%) held one of the widest gains for much of the session but eventually faced some pressure late in the afternoon. Apple (AAPL 270.14, +0.10, +0.04%) and Microsoft (MSFT 507.16, -7.17, -1.39%) spent most of the day in a lackluster fashion, while NVIDIA (NVDA 195.19, -3.50, -1.76%) reversed an earlier gain of nearly 2.0%. 

Despite the late slide in NVIDIA, chipmaker names still largely outperformed today, sending the PHLX Semiconductor Index 3.0% higher.

Advanced Micro Devices (AMD 256.33, +6.28, +2.51%) traded higher after a beat-and-raise earnings report, reversing a pre-market loss that had investors worried it might follow a similar trajectory to Palantir Technologies (PLTR 187.90, -2.84, -1.49%), which moved sharply lower yesterday on valuation concerns despite a blowout earnings report. 

Micron (MU 237.50, +19.47, +8.93%) was a notable standout on reports that SK Hynix is aiming to increase HBM4 supply prices by 50%. That headline contributed to a solid gain in Seagate Tech (STX 275.77, +25.39, +10.14%) as well. 

The consumer staples (-0.3%) and real estate (-0.1%) sectors also closed with modest losses, while the utilities sector finished flat.

Seven other S&P 500 sectors captured gains as the market benefitted from relatively wide participation that saw advancers outpace decliners by a roughly 2-to-1 ratio on the NYSE and Nasdaq. The positive breadth figures were a welcome sight to a market that has seen thin leadership from its largest names drive the most recent push to record highs. Ultimately, the S&P 500 Equal Weighted Index (+0.6%) outperformed the market-weighted S&P 500 (+0.4%). 

The Russell 2000 (+1.5%) and S&P Mid Cap 400 (+0.7%) also outperformed as the market exhibited a less defensive posture today. 

While some late pressure in tech saw the major averages close with roughly half of their early gains, the broader tone remained supportive as stronger breadth pointed to a less volatile demeanor. 

Meanwhile, U.S. Treasuries retreated, lifting yields to their highest levels since early October after a quiet first two sessions of the week. The midweek affair started in flat fashion, but selling interest began building after the open as the market received generally upbeat economic data that included renewed growth in the ADP Employment Change report (42,000; prior -29,000) and expansionary readings of the S&P Global U.S. Services PMI (54.6) and the ISM Services Index (52.4%) for October.

The 2-year note yield settled up five basis points to 3.63%, and the 10-year note yield settled up seven basis points to 4.16%.

• Nasdaq Composite: +21.7% YTD
• S&P 500: +15.6% YTD
• DJIA: +11.2% YTD
• S&P Mid Cap 400: +3.8% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -1.9%; Prior 7.1%
• October ADP Employment Change 42K (Briefing.com consensus 26K); Prior was revised to -29K from -32K
• October S&P Global U.S. Services PMI - Final 54.8; Prior 54.2
• October ISM Services 52.4% (Briefing.com consensus 50.9%); Prior 50.0%
  • The key takeaway from the report is that it is not a data point that falls in favor of a rate cut in December. Business activity for the nation's largest sector accelerated in October, while the prices index (which measures prices paid for materials and services by services organizations) hit its highest level in three years.