Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.3%), and DJIA (+0.2%) sit mostly lower as mega-cap tech lags after solid performances yesterday. 

The information technology sector (0.8%) faces the brunt of the weakness, with Microsoft (MSFT 475.83, -14.17, -2.89%) a notable laggard after The Information reported that the company has lowered AI software sales quotas as customers resist newer products. 

An early loss in Alphabet (GOOG 314.76, -1.26, -0.40%) keeps the communication services sector (-0.4%) lower, and the industrials sector (flat) sees some modest profit taking in names that surged higher yesterday.

The broader market, however, is off to a solid start. Eight S&P 500 sectors hold gains, led by the energy sector (+1.2%), which is supported by oil prices bouncing off of yesterday's lows. 

Strength in the broader market lifts the S&P 500 Equal Weighted Index (+0.6%) to a solid early gain, though weakness across the market's largest names stifles growth in the major averages. 

Industrial production increased 0.1% month-over-month in September (Briefing.com consensus 0.1%) following a downwardly revised 0.3% decline (from 0.1%) in August. The capacity utilization rate was 75.9% (Briefing.com consensus 77.3%) following a downwardly revised 75.9% (from 77.4%) in August (note: annual revisions were released November 24). Total industrial production increased 1.6% yr/yr, while the capacity utilization rate was 3.6 percentage points below its long-run average.

The key takeaway from the report is the downshift in the capacity utilization rate, which implies there is slack in the industrial sector that should translate into reduced inflation pressure.

The final November S&P Global U.S. Services PMI registered at 54.1, from a preliminary reading of 54.8.

Just released, the ISM Services PMI increased to 52.6% in November (Briefing.com consensus 52.4%) from 52.4% in October.