Stock Market Update

[BRIEFING.COM] Today's trade features limited up and down movement in the major equity indices. Ongoing buying in the mega cap space has supported the S&P 500 (+0.1%) and the Nasdaq Composite (+0.6%) while the Dow Jones Industrial Average (-0.2%) trades above and below its prior close.

The muted action is related to an emerging view that the market is overbought on a short-term basis after a huge run off the April lows. The limited movement in the stock market is also related to price action in Treasuries.

The 10-yr yield sits at 4.53% and there is some concern that the pickup in yields is related to the Joint Committee on Taxation's projection that the reconciliation bill, in its current form, will add $3.7 trillion to the budget deficit between 2025 and 2034.

Outsized moves in the equity market are limited to individual stocks with specific catalysts. Super Micro Computer (SMCI 45.47, +6.58, +17.0%) is sharply higher following a $20 billion deal with Saudi Arabia's DataVolt to expedite delivery of GPU platforms while shares of American Eagle Outfitters (AEO 12.09, -0.63, -5.0%) declined after retracting financial guidance due to economic uncertainty.

Dow component Boeing (BA 206.69, +3.31, +1.6%) is another individual standout after President Trump's announcement that Qatar has agreed to buy 160 Boeing jets.

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