Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.3%) holds a modest midday loss after spending the first half of the session in a sideways range near its opening low.

The market is following yesterday's impressive recovery off opening lows with a lackluster showing as most sectors give in to another attempt at profit taking after the market's big run off the April low. Seven sectors trade lower today with technology (-0.5%) and financials (-0.7%) exerting notable pressure. Sectors like health care (unch) consumer staples (+0.1%), and utilities (+0.3%) have outperformed since morning trade, and have been recently joined by communication services (+0.3%).

The market did not receive any economic data today, but it heard from Home Depot (HD 377.86, -1.52, -0.4%), as the bellwether retailer missed Q1 EPS expectations on above-consensus revenue but still reaffirmed its guidance for the fiscal year. The company's CFO said that selling prices will not increase due to tariffs, making for an interesting nugget of information as the market tries to estimate the overall impact that tariffs will have once they reach the consumer.

Shares of Home Depot have reversed lower after a morning run past their 200-day moving average (386.77) to an eleven-week high. In other earnings, Amer Sports (AS 34.57, +3.18, +10.1%) has soared to a fresh record after beating Q1 expectations, issuing in-line guidance for Q2, and raising its outlook for FY25.

The market has not heard any tariff-related updates or surprises from President Trump today, whose time is being occupied by a visit to Capitol Hill as he pushes Republican lawmakers to stop seeking cuts to Medicaid spending as part of the reconciliation bill that should see a vote late this week.

Treasuries faced some early pressure, but they bounced with the short end leading the way while longer tenors are lower. The 10-yr yield is up one basis point at 4.48% and the 30-yr yield up three basis points at 4.97% after hitting a high just shy of 5.00% earlier.