Stock Market Update

[BRIEFING.COM] The stock market has exhibited mixed action at the index level thus far. The S&P 500 (+0.1%) and Nasdaq Composite (+0.4%) have mostly traded higher, boosted by gains in mega caps, while the Dow Jones Industrial Average (flat) lags its peers.

The mixed showing reflects a lack of conviction on either side of the tape. Advancers and decliners are roughly even at the NYSE while decliners have a 4-to-3 lead over advancers at the Nasdaq.

Market participants are hesitant to continue yesterday's rally due to ongoing uncertainty around US trade policy and following some soft economic data this morning that adds to lingering growth concerns.

The Consumer Confidence Index showed a fourth consecutive decline, and the Expectations Index fell to its lowest level (65.2) in 12 years, with worries about future employment prospects and inflation pacing that downturn. Separately, new home sales increased a modest 1.8% month-over-month in February, yet higher-priced homes made up a smaller percentage of sales than the prior month.

The market is also digesting disappointing earnings results and guidance from KB Home (KBH 58.80, -2.99, -4.8%). The homebuilder reported below-consensus Q1 earnings and lowered its FY25 housing revenue outlook, piling onto concerns of an intensifying housing market slowdown. This comes less than one week after competitor Lennar (LEN 118.49, +0.93, +0.8%) issued soft 2Q25 EPS and deliveries guidance.

Four of the S&P 500 sectors are lower led by utilities (-1.7%) and consumer staples (-1.0%). The communication services (+1.2%) and consumer discretionary (+0.4%) sectors, which house mega cap components, lead the pack. 

Reviewing today's economic data:

• January FHFA Housing Price Index 0.2%; Prior was revised to 0.5% from 0.4%
• January S&P Case-Shiller Home Price Index 4.7% (Briefing.com consensus 4.6%); Prior 4.5%
• March Consumer Confidence 92.9 (Briefing.com consensus 94.2); Prior was revised to 100.1 from 98.3
  • The key takeaway from the report is that the drop in confidence was guided primarily by the decline in consumers' outlook, which was driven by worries about inflation and future employment prospects, the latter of which hit a 12-year low. This can be a combination for a pullback in discretionary spending.
• February New Home Sales 676K (Briefing.com consensus 680K); Prior was revised to 664K from 675K
  • The key takeaway from the report is that new home sales in February were aided by the drop in mortgage rates, yet affordability constraints remained a headwind as sales of higher-priced homes accounted for a smaller percentage of new home sales in February than the prior month.