Stock Market Update

[BRIEFING.COM] The major averages opened in a mixed fashion, with the S&P 500 (+0.3%) and Nasdaq Composite (+1.0%) reclaiming the bulk of yesterday's losses, while the DJIA (-0.4%) retreats. 

The communication services sector (+3.3%) drives the advance, with Alphabet (GOOG 229.25, +17.26, +8.14%) trading sharply higher after a favorable ruling in the company's antitrust lawsuit that will enable them to retain their Chrome browser. 

Apple (AAPL 235.10, +5.38, +2.34%) is also a beneficiary, as the ruling will allow Google to remain the default search engine on iPhones. The information technology sector (+0.4%) holds a modest gain despite a subdued opening from semiconductor names that keeps the PHLX Semiconductor Index flat for the day.

The positive sentiment among mega-cap names has the consumer discretionary sector (+0.3%) holding a modest gain, while the remaining eight S&P 500 sectors trade lower.

On the monetary policy front, St. Louis Fed President Alberto Musalem (FOMC voting member) stated in a speech that the current modestly restrictive setting of the policy rate is consistent with today's full employment labor market and core inflation nearly one percentage point above the Fed's 2% target, though recent data has further increased his perception of downside risks to the labor market. 

Mr. Musalem expects the effects of tariffs to work through the economy in the next two to three quarters but noted that above-target inflation could be more persistent.

Factory orders slumped 1.3% month-over-month in July (Briefing.com consensus: -1.4%) following a 4.8% decrease in June.

The July JOLTS Job Openings registered at 7.181 million, from a prior revised level of 7.357 million (from 7.437 million).