Stock Market Update

[BRIEFING.COM] Modest but broad-based gains seat the S&P 500 (+0.1%) and DJIA (+0.2%) with slight gains for the day, while the Nasdaq Composite (-0.1%) recently returned to its baseline. 

The S&P 500 trades in a tight range, so far unable to surmount resistance at its record high level (6,481.34) despite seven of its sectors trading with modest gains. 

Only the energy sector (+1.0%), which benefits from an increasing price of oil, holds a gain wider than 0.5%.

The market largely remains in a wait-and-see mode ahead of NVIDIA's (NVDA 181.82, +0.05, +0.03%) earnings report after the close today and Friday's PCE report, which will be a driver of monetary policy. 

NVIDIA's flat performance today is in line with a slight 0.1% gain in the PHLX Semiconductor Index, though the broader information technology sector (+0.3%) holds a decent gain due to strength across software names. 

Though not within the S&P 500 itself, MongoDB's (MDB 288.49, +74.15, +34.59%) impressive beat-and-raise earnings report pushed software stocks higher this morning, with Datadog (DDOG 129.42, +3.11, +2.46%) and ServiceNow (NOW 883.72, +19.06, +2.20%) among the beneficiaries. 

The financials sector (+0.3%) rounds out the top three advancers, seeing strength across its banking names such as Wells Fargo (WFC 82.80, +1.28, +1.58%) and Citigroup (C 96.88, +1.16, +1.21%). Though now in negative territory for the day, DJIA component Goldman Sachs (GS 747.22, -1.73, -0.23%) set a fresh record high this morning. 

Retail names are also among the top performers today, supported by earnings beats from Kohl's (KSS 15.50, +2.46, +18.86%), Abercrombie & Fitch (ANF 96.78, +0.04, +0.04%), and PVH (PVH 80.98, -1.50, -1.82%). 

The SPDR S&P Retail ETF is up 1.2% today. 

Smaller-cap stocks are once again modestly outperforming the market, with the Russell 2000 up 0.5% and the S&P Mid Cap 400 up 0.6%.

Mega-cap stocks, for their part, are trading slightly below the broader market ahead of NVIDIA's earnings call. The Vanguard Mega Cap Growth ETF is flat today, just below the market-weighted S&P 500 (+0.2%) and the S&P 500 Equal Weighted Index (+0.2%). 

Losses today are mostly confined to the communication services sector (-0.4%), which faces pressure from Meta Platforms (META 744.32, -9.78, -1.30%) and Netflix (NFLX 1215.71, -10.38, -0.85%). 

Headlines are relatively quiet as President Trump's firing of Fed Governor Lisa Cook sets up a legal battle that will likely persist for some time.

New York Fed President John Williams (FOMC voting member) said in a CNBC interview that Ms. Cook is highly respected but had nothing to say regarding the charges against her.

On the topic of economic policy, Mr. Williams noted that if inflationary data moves as he expects, it would be appropriate to lower interest rates over time, but the Fed must be driven by data. Mr. Williams notes that if PCE inflation is 2.9%, he thinks 40-50 basis points of that figure are tariff related.

The probability of a 25-basis point rate cut at the September FOMC meeting is holding steady at 87.2%, according to the CME FedWatch tool. 

Treasuries are continuing to see a curve-steepening trade, with the 2-year note yield down five basis points to 3.63%, while the 10-year note yield is unchanged at 4.26%, and the 30-year note yield is up three basis points at 3.94%. 

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -0.5%; Prior -1.4%