Stock Market Update

[BRIEFING.COM] The stock market settled in mixed fashion. The Dow Jones Industrial Average closed fractionally lower, the Nasdaq Composite logged a 0.7% gain, and the S&P 500 settled little changed from yesterday. 

The outperformance of the Nasdaq was driven by ongoing buying in mega caps, chipmakers, and growth stocks. NVIDIA (NVDA 135.34, +5.41, +4.2%) was an influential winner in that regard.

The Vanguard Mega Cap Growth ETF (MGK) was 0.8% higher, the PHLX Semiconductor Index (SOX) logged a 0.6% gain, and the Russell 3000 Growth Index closed 0.6% higher.

There was less enthusiasm for other areas of the equity market. The equal-weighted S&P 500 registered a 0.6% decline. Participants were lacking conviction on either side of the tape due to an emerging view that stocks are overbought in the short-term.

Market participants are also closely watching the Treasury market. The 10-yr yield settled three basis points higher at 4.53% and the 2-yr yield settled three basis points higher at 4.05%, contributing to some selling pressure for equities.

Outsized moves in either direction were limited to stocks with specific catalysts. Super Micro Computer (SMCI 45.00, +6.11, +15.7%) is sharply higher following a $20 billion deal with Saudi Arabia's DataVolt to expedite delivery of GPU platforms.

Shares of American Eagle Outfitters (AEO 11.90, -0.82, -6.5%) declined after retracting financial guidance due to economic uncertainty. 

Dow component Boeing (BA 204.72, +1.30, +0.6%) was another individual standout after Qatar Airways announced that the carrier will purchase up to 210 widebody jets, which sets new records as the largest widebody order for Boeing. 

• S&P 500: +0.2% YTD
• Dow Jones Industrial Average: -1.2% YTD
• Nasdaq Composite: -0.9% YTD
• S&P Midcap 400: -2.3% YTD
• Russell 2000: -6.6% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 1.1%; Prior 11.0%
• Weekly EIA Crude Oil Inventories showed a build of 3.45 million barrels versus last week's draw of 1.11 million barrels

Looking ahead to Thursday, market participants receive the following economic data:

• 8:30 ET: April PPI (Briefing.com consensus 0.3%; prior -0.4%), Core PPI (Briefing.com consensus 0.3%; prior -0.1%), April Retail Sales (Briefing.com consensus 0.2%; prior 1.4%), Retail Sales ex-auto (Briefing.com consensus 0.5%; prior 0.5%), May Empire State Manufacturing (Briefing.com consensus 1.0; prior -8.1), May Philadelphia Fed (Briefing.com consensus -6.0; prior -26.4), weekly Initial Claims (Briefing.com consensus 226,000; prior 228,000), and Continuing Claims (prior 1.879 mln)
• 9:15 ET: April Industrial Production (Briefing.com consensus 0.3%; prior -0.3%) and Capacity Utilization (Briefing.com consensus 77.9%; prior 77.8%)
• 10:00 ET: May Business Inventories (Briefing.com consensus 0.2%; prior 0.2%) and May NAHB Housing Market Index (Briefing.com consensus 40; prior 40)
• 10:30 ET: Weekly natural gas inventories (prior +104 bcf)