Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.1%) and Nasdaq Composite (+0.5%) continue their record-capturing streak as several mega-cap names trade higher today, while weakness in the broader market has kept the DJIA (-0.5%) below its baseline. 

Considering the size and scope of yesterday's rally, the market's more subdued disposition should come as no surprise. Today's action comes on lower than average volume, which suggests a lack of conviction among investors as this week's main developments are now in the rearview.

Though the broader market is in retreat, losses are modest, reflecting resilience in the market despite some expected profit-taking from yesterday's highs.

Seven S&P 500 sectors trade lower, but only the materials sector (-1.1%) holds a loss wider than 1.0%. 

Meanwhile, the information technology (+0.6%), consumer discretionary (+0.5%), utilities (+0.3%), and communication services (+0.1%) sectors hold gains, with strong performances from some of the market's largest preventing further losses at the index level. 

Tesla (TSLA 393.44, +24.63, +6.68%) leads the way, trading considerably higher for the second consecutive day and rising to its best level since early February. 

Apple (AAPL 233.82, +3.79, +1.65%) and Microsoft (MSFT 511.92, +10.91, +2.18%) support the gain in the information technology sector despite a flat showing from chipmakers that has the PHLX Semiconductor Index up just 0.1%. 

The Vanguard Mega Cap Growth ETF is up 0.5% as a result, contributing to the market-weighted S&P 500's (+0.1%) outperformance over the S&P 500 Equal Weighted Index (-0.6%). 

Smaller cap indices, which outperformed yesterday as rate cut expectations were bolstered by a spike in initial jobless claims, have given back some of their gains. The Russell 2000 and S&P Mid Cap 400 are both down 0.8%.

Corporate headlines are relatively light today. 

Bloomberg reported this morning that the Paramount Skydance's (PSKY 18.20, +0.74, +4.24%) prospective acquisition of Warner Bros. Discovery (WBD 18.73, +2.56, +15.83%) could face intense regulatory scrutiny, though both stocks continue to trade higher today. 

On the earnings front, Adobe (ADBE 348.63, -1.92, -0.55%) trades lower after beating EPS and revenue expectations but issuing mixed guidance. 

Reviewing today's data:

• September Univ. of Michigan Consumer Sentiment - Prelim 55.4 (Briefing.com consensus 59.2); Prior 58.2
  • The key takeaway from the report is that the pullback in consumer sentiment was paced by fading economic views among lower-income and middle-income consumers.