Stock Market Update

[BRIEFING.COM] The equity market has taken a defensive turn today that, coincidentally, is happening on the last trading day of the month, which precedes a two-month period that has its share of history in producing some sizable declines.

That isn't a forecast, just an objective fact. August has been a banner month this year, however, producing record highs for the Dow, Nasdaq, and S&P 500.

Today's weakness has some news drivers behind it, but at the same time it may just be a case more than anything else of taking some money off the table and squaring positions ahead of the long weekend. Markets will be closed Monday for Labor Day.

The information technology (-1.4%), industrials (-1.1%), and consumer discretionary (-0.9%) sectors are the biggest laggards in today's sessions. Dow component Caterpillar (CAT 417.00, -17.91, -4.12%) is the main drag for the industrials, warning its full-year adjusted operating margin is likely to be at the bottom of the company's target range due to higher-than-expected tariff costs. Retailer Gap (GAP 21.90, +0.22, +1.04%) also warned its tariff costs are going to be higher than expected, which will pressure its operating margin.