Stock Market Update

[BRIEFING.COM] The stock market has exhibited mixed action at the index level. Market breadth has been positive through the entire session, but the S&P 500 (+0.8%) and the Nasdaq Composite (+0.3%) have traded above and below their prior closing levels due to the ebb and flow of mega cap stocks.

The Dow Jones Industrial Average (-0.7%) has been under pressure, clipped by shares of UnitedHealth (UNH 457.39, -127.65, -21.8%), which reported disappointing earnings and guidance. 

Meanwhile, shares of Eli Lilly (LLY 851.96, +117.33, +16.0%) are surging after it announced positive trial results for its weight-loss drug pill.

Market participants are also reacting to President Trump's proclamation that Fed Chair Powell's termination cannot come fast enough, along with his indication that trade talks are going well with a few countries.

Semiconductor shares are still relatively weak after leading declines yesterday. NVIDIA (NVDA 101.55, -2.93, -2.8%) and Broadcom (AVGO 172.36, -2.37, -1.3%) are among the influential losers. The PHLX Semiconductor Index (SOX) trades 1.2% lower.

Two S&P 500 sectors are lower -- technology (-0.1%) and health care (-0.02%) -- while the remaining sectors show gains ranging from 0.2% to 3.4%.

Reviewing today's economic data:

• March Housing Starts 1.324 mln (Briefing.com consensus 1.418 mln); Prior was revised to 1.494 mln from 1.501 mln, March Building Permits 1.482 mln (Briefing.com consensus 1.455 mln); Prior was revised to 1.459 mln from 1.456 mln
  • The key takeaway from the report is that single-unit starts (-14.2%) and permits (-2.0%) were both down during the month, as affordability constraints driven by higher mortgage rates and building costs presumably curtailed homebuilder activity.
• April Philadelphia Fed Index -26.4 (Briefing.com consensus 10.0); Prior 12.5
• Weekly Initial Claims 215K (Briefing.com consensus 225K); Prior was revised to 224K from 223K, Weekly Continuing Claims 1.885 mln; Prior was revised to 1.844 mln from 1.850 mln
  • The key takeaway from the report is that the low level of initial jobless claims will support the idea that the labor market is still in a solid position overall. Additionally, this should factor well in forecasts for April nonfarm payrolls since it covers the period in which the employment survey is conducted.